In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
From January 1st to December 31st
- Accounting Standards
The Finnish Generally Accepted Accounting Principles (GAAP) is a commonly used accounting standard in Finland. Companies that are quoted in the stock-exchange have to use the IAS/IFRS standards (EU obligation since 2005).
- Accounting Regulation Bodies
The European Federation of Accountants
Chamber of Commerce
- Accounting Reports
The accounting report is made annually. In the report intangible assets can be shown in the balance sheet or in expenses in the profit and loss account (choice of the company). Physical fixed assets must be estimated at the original or production cost. Current assets have to appear at the lower cost and value of the market. Stocks are estimated at the weighted average cost or by the FIFO method.
- Publication Requirements
Law refers to the notion of "good accounting method" as regards the methods of companies for the elaboration of financial status. All companies have to send a copy of their annual report to the legal authorities of the country. This annual report must contain a profit and loss account, a balance sheet and an annual report.
- Professional Accountancy Bodies
KHT-yhdistys ry , The Finnish Institute of Authorized Public Accountants
HTM-tilintarkastajat ry , Association of Accountants (in Finnish only)
Association of Finnish Accounting Firms , Association of Finnish Accounting Firms
- Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact the Central Chamber of Commerce and Local Chambers of Commerce.
- Accounting News
Accounting news (in Finnish only)
- Nature of the Tax
Value Added Tax (VAT)
- Tax Rate
- Reduced Tax Rate
A 14% rate applies to basic foodstuff and animal feed. The excise duty on alcoholic beverages is 12%.
A 10% rate applies to passenger transport, books, medicines, accommodation services and entry fees to cultural events.
- Other Consumption Taxes
Excise duty is collected on alcoholic drink, cigarettes, petrol, ice cream, soft drinks.
Learn more about Service Providers in Finland on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
- Tax Rate For Foreign Companies
Finnish companies are taxed on their worldwide income; non-resident companies are taxed only on income sourced in Finland.
- Capital Gains Taxation
The tax rate on capital gains is 24.5% for companies.
- Main Allowable Deductions and Tax Credits
Deductions normally include expenses that are incurred to generate or retain the company’s income such as payments of interest and royalties, realized foreign-exchange losses, 50% of entertainment costs, irrevocable orders to buy goods, doubtful sales receivables, fees for establishing an organization and reorganization costs, R&D expenses, etc.
- Other Corporate Taxes
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|State income tax
||Progressive rates from 6.5% to 31.75%
|EUR 16,100 to 23,900
|EUR 23,900 to 39,100
|EUR 39,100 to 70,300
|EUR 70,300 to 100,000
|Above EUR 100,000
||from 16.25% to 21.75%
||from 1% to 2% (depending on regions)
- Allowable Deductions and Tax Credits
The following deductions are allowable:
- expenses incurred in excess of EUR500 for traveling to and from work;
- statutory pension insurance and unemployment insurance premiums;
- interest on a loan if the loan was used to buy a permanent home or property that is used to acquire income;
- capital losses;
- medical expenses and alimony are not deductible, but there is a deductible maintenance allowance of EUR80 per child from earned income for each child living with a former spouse.
- Special Expatriate Tax Regime
An expatriate with special expertise may choose to be taxed at a flat rate of 35% if that person’s regular monthly cash salary exceeds EUR 5,800 (except for teachers and researchers) for 48 months. The application has to be filed within 90 days from the start of the work in Finland.
Learn more about Taxes and Accounting in Finland on Globaltrade.net, the Directory for International Trade Service Providers.
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
- The Language of Justice
Finnish and Swedish
- Recourse to an Interpreter
In connection with certain matters involving the fundamental rights of an individual, such as taking a child into custody, the party concerned is, according to the Language Act, always entitled to use his or her own language regardless of the language of the municipality. If necessary, interpreters can be used.
- Sources of the Law and Legal Similarities
Finland has a parliamentary system.
The main source of the law is the constitution of March 2000. The legal system is based on civil law system which originates from the Swedish law. European Community law is directly applicable and takes precedence over national legislation. The country accepts compulsory ICJ jurisdiction, but with reservations.
- Checking National Laws Online
Constitution of Finland
Legislation in Finland
Learn more about Lawyers and Legal in Finland on Globaltrade.net, the Directory for International Trade Service Providers.
- National Standards Organizations
Finnish Standards Association (SFS)
- Integration in the International Standards Network
The Finnish Standards Association SFS and its standards-writing bodies, the Finnish Electrotechnical Standards Association and Finnish Communications Regulatory Authority are members of the European standards organizations CEN, CENELEC and ETSI. SFS is also a member of the International Organization ISO and IEC.
- Classification of Standards
SFS (or SFS-EN) + 4 or more digits showing the technical area and the rank in the division.
- Online Consultation of Standards
National SFS Standards are sold in Finland only by SFS. Distribution of SFS standards abroad is handled by national ISO member bodies. SFS standards can be viewed in the Catalogue of SFS Standards or downloaded from the online shop of SFS.
- Certification Organizations
Finnish Standards Association (SFS)
- General Information
A guide to Finnish customs and manners by Virtual Finland
Finnish business culture as seen by the Kwintessential website
Finnish business culture as seen by the Executiveplanet website
- Opening Hours and Days
Offices are closed on Saturday and Sunday.
|New Year’s Day
||End of March or April, changes according to the year
||Sunday and Monday following the Good Friday
||May, changes according to the year
||May, changes according to the year
||End of June, changes according to the year
|All Saints’ Day
||End of October or beginning of November, changes according to the year
|Christmas Eve and Day
Periods When Companies Usually Close
||One week between Christmas and New Year
||1-4 weeks starting from Midsummer (around June 24)
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Last Updates: February 2015