kotitalousvähennykseen

Kotitalousvähennys is a tax deduction available in Finland for household work performed in one's home or vacation home. It is designed to encourage employment and reduce undeclared work. The deduction can be claimed for labor costs of certain types of services, such as cleaning, renovations, care services, and IT support. The percentage of the deduction and the maximum amount allowed are set by law and can change annually.

To be eligible for kotitalousvähennys, the work must be performed by a company or an individual who is registered for taxation and has paid necessary social security contributions. The taxpayer must be a Finnish resident or a Finnish resident living abroad who owns or rents the property where the work is done. The deduction is applied to the income tax, reducing the amount of tax payable. The taxpayer must report the expenses on their annual tax return. Receipts and invoices for the work performed are required as proof of expenses. The deductible amount is limited to a certain percentage of the total labor costs, and there is an annual cap on the total deduction. Certain types of work, such as general repairs or construction, may not qualify, while specific improvements or maintenance tasks often do. The specific regulations and eligible services are detailed by the Finnish Tax Administration (Verohallinto).