Paying Taxes in Finland

 1. What is the corporate tax in Finland?

Companies that are set up in Finland have to subdue to a corporate tax rate of 26%. All companies that are resident in Finland have to pay the corporate tax for the worldwide income, while those that are not Finnish residents must pay only for the income inside the borders.

2. What is the VAT in Finland?

The standard VAT rate in Finland is 23%, with some exceptions. Individuals’ and animals’ food are subject to a 13% VAT rate, while books, medicine, hotel accommodation and cultural events have to pay only 9% VAT. Exports outside the EU are free of charge as far as the VAT rate is concerned.

3. How can the VAT be refunded in Finland?

In order to have the VAT returned in Finland, an application must be submitted to the Ministry for Foreign Affairs, Protocol Department, that confirms the right to a refund.  Applications are supposed to pertain to quarters of a year and shouldn’t be posted later than a year after the invoice for VAT has been paid.

4. What is the dividend tax in Finland?

Dividends paid to another Finnish company are exempt from tax, while the dividend tax rate for distribution to a non-resident company is 28%, unless it is reduced under a tax treaty. 

5. Are there any incentives for foreign investors in Finland?

Finland government encourages foreign investment which is already growing. Anyway, benefits for foreign investors consist of investment grants, loans at reduced interest or a state guarantee for exporters.

6. Why do I need a local accountant for my business in Finland?

It is preferable that you hire a local accountant for your Finnish company, as you can get a detailed expertise in accounting from a specialist who knows the local system and has worked with it before. Last but not least, it is important to have in your company someone who can handle the requirements of the Finnish system, which are different from the international ones. 

BridgeWest offers Company Registration in Finland, including virtual office services, opening of bank accounts and accounting services.