Principal Taxes

Taxes in Finland are levied by government and municipalities. Government imposes such taxes as national income tax, wealth tax, value added tax, excise taxes, stamp duties and inheritance and gift taxes. Municipal governments impose municipal income tax and real estate tax.

DIRECT TAXES

The principal direct taxes are national income tax (valtionvero), municipal income tax (kunnallisvero) and net wealth tax (varallisuusvero).

National income tax at a flat rate of 28% is imposed on income earned by corporations and on capital income received by individuals. Income received by corporations and capital income received by individuals are not subject to municipal taxation or church tax. Corporations are not subject to net wealth taxation. The taxation of companies is based on the results reported in their annual statutory accounts, with certain adjustments for tax purposes.