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Finland - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
Corporate tax rate is 26% since January 1st, 2005.
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Taxe rate on long-term capital gains |
Capital gains tax's rate is 26%.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Dividends paid to non - resident companies:
Withholding tax of 25% or 0% (infringement foreseen by international agreements).
Dividends paid to companies residents: withholding tax of 25%.
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Tax rate on branches |
Branches are taxed for Corporate Tax in the same way as any other companies
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Income tax
Fiscal year |
The fiscal year begins on January 1-st and ends on December 31 of the same year.
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Income tax rate |
Personal Income Taxation in 2004 : | In euros | In % | | 0 - 11.700 | 0 | | 11.700 - 14.500 | 11 | | 14.500 - 20.200 | 15 | | 20.200 - 31.500 | 21 | | 31.500 - 55.800 | 27 | | > 55.800 | 34 | There are two additional taxes: a municipal income tax (from 15.5 to 20%) and a church tax (from 1 to 2.25%).
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VAT rates
Standard rates |
22% is the regular rate of VAT in Finland.
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Reduced rates |
Reduced rates of 17% on (for example) food; 8% on (e.g.) pharmaceuticals and public transport; 0% on newspapers.
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Other important taxes
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Name of tax |
Rate |
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Religious tax
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Proportional rates ranging from 1 to 2.25% of the taxable income according to every municipality.
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Wealth tax
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1% of net assets for non-resident companies
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Tax on transfers
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4% for transfers of property assets, 1.6% for transferts of movable assets.
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Accounting
Introduction
The accounting of the Scandinavian countries (Denmark, Finland, Iceland, Norway and Sweden) have a common accounting system thanks to their closely related history and culture.
The relation between the accounting and the tax system is the same as in Germany.
General accounting principles
Intangible assets can be booked 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 weighed average cost or by the FIFO method.
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Obligations and publications
Law refers to the notion of "good accounting method" as regards the methods of companies for the elaboration of financial status.
All the companies of capital 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.
Certification and auditing
The audit is compulsory.
Professionals and representative organizations
The auditors: they are represented by two professional organisations recognized by the State: the kht-yhdistys-Forening ( CGR) who are the authorized auditors and the HTM-TILINTARKASTAJA ( HTM) who are the approved auditors.
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Last modified in
January 2003
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