yrittäjätulo

Yrittäjätulo, meaning entrepreneur's income in Finnish, refers to the income earned by an individual through their own business activities. It is a broad term encompassing profits from sole proprietorships, partnerships, and limited liability companies where the individual is an owner-operator. The exact nature of yrittäjätulo can vary depending on the business structure and how the income is drawn.

For sole proprietors and partners, yrittäjätulo is typically the profit remaining after deducting business expenses from revenue. This income is then subject to personal income tax. In the case of limited liability companies, an entrepreneur might receive yrittäjätulo in the form of a salary, dividends, or a combination of both, each with different tax implications.

The classification of income as yrittäjätulo is crucial for tax purposes in Finland. It determines which social security contributions, such as health insurance and pension contributions, are applicable. There are specific rules and thresholds set by Finnish tax authorities to distinguish yrittäjätulo from other forms of income, like wages from employment. Understanding yrittäjätulo is fundamental for anyone operating a business in Finland to ensure compliance with tax laws and proper financial management.