tulonvähennystä

Tulonvähennystä is a Finnish term that translates to "income reduction" or "income deduction" in English. It refers to a mechanism within the Finnish tax system where certain expenses or allowances can be subtracted from an individual's gross income before taxes are calculated. This process effectively lowers the taxable income, thereby reducing the overall tax liability.

Several types of income reductions are recognized in Finland. These can include deductions for work-related expenses, such as travel costs to and from work, or expenses related to maintaining one's professional skills. Gifts to certain recognized organizations may also be eligible for a tax deduction, within specified limits. Furthermore, certain interest payments, such as those on housing loans, can sometimes be deducted from income, though the rules and deductibility amounts have been subject to change over time.

The primary purpose of tulonvähennys is to ensure that the tax burden is fair and reflects an individual's actual ability to pay. By allowing the deduction of legitimate expenses incurred in earning income or those considered socially beneficial, the system aims to mitigate hardship and encourage certain activities. The specific rules and eligibility criteria for each type of income reduction are detailed in Finnish tax legislation and are administered by the Finnish Tax Administration (Verohallinto). It is crucial for taxpayers to maintain documentation for any expenses they intend to claim as deductions.