Finland Tax Deductions
Finland Tax Relief
The employer is obligated to deduct tax at source from an employee and to make additional contributions to social security.- All forms of relief apply only to Finnish residents.
- The following amounts are subject to the definitions in law:
| Class of Relief. | Amount - EUR. |
|---|---|
| Interest on a loan. | Allowable when deducted from capital gain. |
| Standard deduction for an employee. | 750 EUR. |
| Travel to and from work. | Up to EUR 7,000 |
| Professional literature. | Fully allowable for an employee. |
| Compulsory social security payment. | Allowable. |
| Optional social security payment. | Allowable to a limit. |
Finland Business Deductions 2024
- Offset of losses - A loss may be offset forward for 10 years ,restricted if more than 50% of the company's shares are transferred in the year of loss. There is no carryback for losses.
- Transactions between affiliated parties when the sum of the transaction is significantly higher than the market price are not allowable.
- Thin Capitalization - In general interest expense up to EUR 500,000 is deductible subject to certain exemptions.
- Consolidated Returns -Such returns are not allowed in Finland subject to certain terms.