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Finland

Taxes

If you are willing to start a business in Finland, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC which is the most common company type in Finland.

Finland imposes a tax on corporate worldwide income. This means that income are taxable whether accrued onshore or offshore. The prevailing standard tax rate for offshore income, from our research, and this is not personal tax advice, is 20%. Finland doesn't have major incentives to remit profits made internationally. Taxes are reasonable in Finland as the rate which LLC will pay tax is 20%. This ranks Finland as 69th overall in terms of CIT globally.

The VAT rate in Finland is 24.00%, that ranks Finland as 168th overall in terms of VAT globally. In terms of other taxation, an employer will contribute 20.7% to the equivalent of a social security fund and an employee will contribute 9.25%.

Thin capitalisation mandates are in play. This refers to any type of restrictions on a business and the debt-to-asset ratios.
Dividends received from a Finnish company or from a EEA company are generally exempt from taxes. Dividends received from non-EEA companies are subject to taxation at standard rates. A dividend is a distribution of a portion of earnings of the business, determined by the board, to shareholders. Dividends can be either cash payments, shares of stock, or other property.
Capital Gains are generally subject to Corporate Income Tax. However, an exemption may apply for gains from the sale of shares that belong to fixed assets that are deemed to be part of the seller business income-generating assets, and the seller owns at least 10% of the entity capital for at least 1 year, shares sold do not belong to a real estate company and the company is finish, EEA resident or resident of a country which has concluded a tax treaty with Finland. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

Dividends are subject to withholding tax of 20%. This should be interpreted usually that the taxman expects LLC's to automatically withhold 20% of dividends paid to non-residents, unless tax is reduced under a tax treaty or is exempted under the EU parent-subsidiary directive. Royalties are subject to a 20% withholding tax. This means that payments on royalties to non-residents are taxed at a 20% rate, unless tax is reduced under a tax treaty or is exempted under the EU royalties directive. Payments abroad on interests are not subject to withholding tax.
There is no known tax on wealth in Finland. But, there are inheritance, transfer and real estate taxes. There are well known R&D intitiatives that provide tax incentives here.

The above is not tax or legal advice for your company's situation. Incorporations.io can refer you to a tax advisor in Finland who can give you an answer. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Finland
EUR
Helsinki
Europe
fi-FI, Swedish (Finland), smn
5,244,000

Tax treaties

Country Type Date Signed
Greece DTC  1980-01-20
Saint Kitts and Nevis TIEA 2010-03-24
Liechtenstein TIEA 2010-12-17
Mexico DTC  1997-02-12
Luxembourg DTC  1982-03-01
Montserrat TIEA 2010-11-22
Canada DTC  2006-07-20
Barbados DTC  1989-06-15
Norway TIEA 1989-12-07
Liberia TIEA 2010-11-10
Ireland DTC  1992-03-27
Cyprus DTC  2012-11-15
Zambia DTC  1978-11-30
Antigua and Barbuda TIEA 2010-05-19
Belize TIEA 2010-09-15
China DTC  2010-05-25
Kazakhstan DTC  2009-03-24
Bahamas, The TIEA 2010-03-10
Armenia DTC  2006-10-16
Kyrgyzstan DTC  2003-04-03
Turks and Caicos Islands TIEA 2009-12-16
Egypt DTC  1965-04-01
Kosovo DTC  2011-11-11
Georgia DTC  2007-10-11
Indonesia DTC  1987-10-15
Netherlands DTC  1995-12-28
Niue TIEA 2013-10-16
United Kingdom DTC  1969-07-17
Hungary DTC  1978-10-25
Germany DTC  1979-07-05
Isle of Man TIEA 2007-10-30
Montenegro DTC  1986-05-08
Brazil DTC  1996-04-02
Serbia DTC  1986-05-08
South Africa DTC  1995-05-26
Belgium DTC  1976-05-18
Azerbaijan DTC  2005-09-29
Brunei Darussalam TIEA 2012-06-27
Czech Republic DTC  1994-12-02
Malaysia DTC  1984-03-28
Pakistan DTC  1994-12-30
Iceland TIEA 1989-12-07
Australia DTC  2006-11-20
Guatemala TIEA 2012-05-15
Botswana TIEA 2013-02-20
Curaçao TIEA 2009-09-10
India DTC  2010-01-15
Sri Lanka DTC  1982-05-18
Aruba TIEA 2009-09-10
Cook Islands TIEA 2009-12-16
Saint Lucia TIEA 2010-05-19
Gibraltar TIEA 2009-10-20
Uruguay DTC  2011-12-13
Cayman Islands TIEA 2009-04-01
Former Yugoslav Republic of Macedonia DTC  2001-01-25
Bermuda TIEA 2009-04-16
Turkey DTC  2009-10-06
Singapore DTC  2002-06-07
Anguilla TIEA 2009-12-14
France DTC  1970-09-11
Qatar TIEA 2013-09-06
Israel DTC  1997-08-01
Saint Vincent and the Grenadines TIEA 2010-03-24
Jersey TIEA 2008-10-28
Portugal DTC  1970-04-27
Russian Federation DTC  1996-05-04
Viet nam DTC  2001-11-21
Slovakia DTC  1999-02-15
Lithuania DTC  1993-04-30
Monaco TIEA 2010-06-23
Latvia DTC  1993-03-23
Spain DTC  1967-11-15
Poland DTC  2009-06-08
Marshall Islands TIEA 2010-09-28
Sweden TIEA 1989-12-07
Belarus DTC  2007-12-18
Macao, China TIEA 2011-04-29
Andorra TIEA 2010-02-24
Switzerland DTC  1991-12-16
Moldova, Republic of DTC  2008-04-16
Seychelles TIEA 2011-03-30
Uzbekistan DTC  1998-04-09
Morocco DTC  2006-04-07
Philippines DTC  1978-10-13
Thailand DTC  1985-04-25
Mauritius TIEA 2011-12-01
Costa Rica TIEA 2011-06-29
Ukraine DTC  1994-10-14
United States DTC  1989-09-21
United Arab Emirates DTC  1996-03-12
Dominica TIEA 2010-05-19
Sint Maarten TIEA 2009-09-10
Grenada TIEA 2010-05-19
Greenland TIEA 1989-12-07
Jamaica TIEA 2012-12-04
Slovenia DTC  2003-09-19
Panama TIEA 2012-11-12
Estonia DTC  1993-03-23
Bosnia and Herzegovina DTC  1986-05-08
Malta DTC  2000-10-30
Guernsey TIEA 2008-10-28
Denmark TIEA 1989-12-07
Japan DTC  1991-03-04
Samoa TIEA 2009-12-16
Faroe Islands TIEA 1989-12-07
Italy DTC  1981-06-12
Croatia DTC  1986-05-08
Bulgaria DTC  1985-04-25
Argentina DTC  1994-12-13
San Marino TIEA 2010-01-12
Korea, Republic of DTC  1979-02-08
New Zealand DTC  1982-03-12
Vanuatu TIEA 2010-10-13
Bahrain TIEA 2011-10-14
Tajikistan DTC  2012-10-24
Austria DTC  2000-07-26
Romania DTC  1998-10-27
Tanzania DTC  1976-05-12

Tax treaties Map

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Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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