A company is treated as a Finnish tax resident if it is registered in Finland or established under Finnish law. However, an applicable double tax treaty might restrict the taxing right of Finland if the place of effective management of the company is outside Finland. A European company (Societas Europaea) registered in Finland is also treated as a Finnish tax resident.
Corporate tax Finland
Tax resident companies of Finland are subject to a corporate tax on their worldwide profits and gains (subject to any double tax treaties) at a rate of 20%.
Generally, corporate tax is based on the profit and loss statement prepared in accordance with the Finnish Generally Accepted Accounting Principles (GAAP) with only minor adjustments for tax purposes. Companies can also apply the International Financial Reporting Standards (IFRS).
Corporate tax is usually paid as monthly advance payments. Companies file a corporate tax return within four months after the end of the financial period. If insufficient advance taxes have been paid, a supplement corporate tax based on the tax decision, issued within ten months after the end of financial period, must be paid.
Corporate tax is a flat rate state tax. There is no local corporate tax.
If a limited company distributes dividend to its shareholders, the shareholder-beneficiaries will be taxed as provided by specific rules.
Transfer tax in Finland
Transfer tax on most shares is 1.6%, except 4% on real estate and buildings and 2% on shares in a housing company or a real estate company.
For further information please contact your current contact person or named specialist on this page. We are pleased to provide further information on the above issues.