työtulovähennystä

Työtulovähennys is a Finnish tax deduction that reduces an individual's income tax liability based on their earned income. It is designed to encourage employment by making work more financially rewarding. The deduction is calculated as a percentage of earned income, up to a certain maximum amount. The specific percentage and maximum limits can vary from year to year and are determined by the Finnish government through legislation.

To be eligible for työtulovähennys, an individual must have earned income from employment or self-employment. Certain types of income, such as capital income or social security benefits, are not eligible. The deduction is applied directly to the income tax payable, effectively lowering the overall tax burden. It is automatically considered in the tax assessment process, so individuals typically do not need to apply for it separately.

The purpose of työtulovähennys is to provide financial relief to low and middle-income earners, thereby increasing their disposable income. This can help to alleviate poverty and promote economic activity. The exact mechanics and thresholds of the työtulovähennys are detailed in the Finnish Income Tax Act. Taxpayers can find specific information regarding the current year's deduction amounts and rules from the Finnish Tax Administration (Verohallinto).