Finland
Taxation in Finland
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Taxation in Finland
Direct taxes include state income tax, wealth tax, inheritance and gift tax, and asset transfer tax. These are payable to the State, municipal tax is payable to the appropriate Municipality and church tax is payable to the Church. Indirect taxes include value added tax, excise and customs duties.
Income Tax
The income tax rate for 2009 (in Euro's):
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0% on income between 1 and 13,100
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7% on income between 13,101 and 21,700
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18% on income between 21,701 and 35,300
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22% on income between 35,301 and 64,500
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30.5% on income of 64,501 and over
Corporate Tax
The corporate tax rate for 2009 is 26%.
VAT
The general VAT rate is 22% of the price, excluding tax or other tax base.
There is a reduced tax rate of 17%. This is applied to the following goods and services:
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Foodstuffs
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Animal feed
The reduced tax rate is not applicable to restaurant services, live animals, tap water, alcohol and tobacco products.
There is also a reduced tax rate of 8%, which is applied to the following:
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Transport services
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Transfer of the right of use of an accommodation facility
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Admissions to theatres, concerts, circus and dance performances, cinemas, exhibitions, sports events, amusement parks, zoos, events and facilities
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Services which facilitate sporting activities
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Medicines
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Books
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Barber and hairdressing services, as well as small repair services, including bicycle, shoe, leather product, clothes and linen repairs
Excise taxation is applied to alcohol, manufactured tobacco and mineral oils (liquid fuel).
Excise duties are also charged on soft drinks, electricity and certain fuels in Finland.
