Finland

Standard Corporate Income Tax Rate:
The current standard corporate income tax rate is 20%
Companies that are resident in Finland are subject to Finland corporate income tax, i.e. unrestricted tax liability. In addition, a non-resident company's permanent establishment in Finland is subject to Finland corporate income tax to cover its worldwide income at that permanent establishment.

Pillar Two – Global Minimum Tax:
Finland has implemented Pillar Two legislation, including the Income Inclusion Rule (IIR), the Undertaxed Profits Rule (UTPR), and the Qualified Domestic Minimum Top-up Tax (QDMTT). The IIR and QDMTT apply for financial years starting on or after 31 December 2023. The UTPR applies for financial years starting on or after 31 December 2024. Finland's Pillar Two law closely follows the EU Directive and the OECD GloBE Model Rules. Multinational groups subject to Finland Pillar Two rules may be required to calculate and pay a top-up tax if their effective tax rate in any jurisdiction falls below 15%.

Overview of VAT in Finland:
The general VAT rate is 25.5%.

1. The tax on food and animal feed is 14%. The VAT rate is 14% and also applies to restaurants and catering services.
2. 10% VAT applies to certain goods and services (e.g. books, newspaper subscriptions, accommodation, passenger transportation).
3. zero tax rate applies in certain circumstances (e.g. supply of goods within the EU and export of goods). In addition, certain services, such as finance, insurance, and certain educational services, are exempt from VAT.

Payroll Tax:
Employers are responsible for withholding employees' income, including cash compensation and non-cash benefits based on taxable value.

Social security insurance:
According to Finland's social security law, both domestic and foreign employers are required to pay social insurance to Finland if the employee works wholly or partially in Finland. This responsibility applies to all employers, regardless of the form of the company and whether the foreign company has a permanent establishment in Finland. The percentage of employers' (and employees' ) social security contributions are revised annually.

In 2026, the employer's obligation to pay social insurance according to its salary is as follows:

1. Employer's pension insurance: 17.10% (average, uncapped).
2. Employer's unemployment insurance: 0.31% of gross wages up to EUR 2,509,500 and 1.23% (uncapped) for gross wages over EUR 2,509,500.
3. Employer's sickness insurance contribution: 1.91% (uncapped).
4. Statutory accident insurance: 0.51% (average, uncapped).
5. Statutory group life premium: 0.06% (average, uncapped).

Overview of import and export taxes:
Many imported goods from outside the EU are subject to customs duties and excise duties. The tariffs and rates applied to different goods vary widely and change frequently.
Excise duty is levied on certain consumer goods such as cigarettes, cigars, mineral oil, alcohol products. If it is used only as a raw material, no consumption tax is levied. If the goods are exported, the excise duty can be refunded.

A Transfer tax of 3% of the sales price is payable on transfer of real estate located in Finland. A transfer of shares in Finnish companies and other domestic securities is subject to a transfer tax of 1.5%. A transfer of shares in Finnish housing companies and real estate companies is subject to a transfer tax of 1.5%. A transfer tax of 1.5% of the sales price is payable on a transfer of shares in a foreign company whose activities consist mainly of owning or holding (directly or indirectly) real estates in Finland.

2024 Amendment: The transfer tax base now includes shareholder loans assumed by the transferee in connection with the share acquisition.

2025 Amendment: Companies distributing dividends as shares or other securities are liable for transfer tax on dividends available to be drawn as securities on or after 1 January 2025.

No transfer tax is payable on the transfer of securities that are subject to trading on a regulated market or multilateral trading facility in the EEA. Similarly, no transfer tax is payable if both the seller and the transferee are non-residents. Transfer tax is, however, always payable on transfers between non-residents if the transferred shares are shares in a Finnish housing or real estate company.