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. |
| Individual Relief (2001) | Amount - CYP |
|---|---|
| Donations | If agreed, to a limit of CYP 20,000. Over CYP 20,000 - 50% of the amount With no agreement, between CYP 5 - 150, depending on the monthly income. |
| Life Insurance | Up to 1/6 of the taxable income. |
| Child allowance | An allowance of CYP 500 for a child under the age of 16 who is not working or studying. An allowance of CYP 1,500 for a child who is studying at an institute of advanced studies. An allowance of CYP 500 for a child who is serving in the national guard. |
| Old age allowance | An allowance of CYP 1,500 is granted to any person over the age of 65. |
| Life partner | A reduction of CYP 500. |
| Professional membership dues | The entire amount is allowable |
| Interest | On a loan for a residence up to CYP 500 Other interest, up to CYP 100. |
| Income from rent | 20% of the income is tax exempt. |
Greece Tax Exempt Income
The following are eligible for an exemption from income tax on the forms of income specified:- An individual's income up to CYP 6,000 per resident.
- An individual who receives a pension in Greece from overseas employment, to a limit of CYP 2,000.
- Interest on an individual's income from a government savings plan or from a mortgage company.
- Bank interest paid on deposits from overseas by a Cypriot bank to a foreign resident who is resident in Greece.
- Part of capital gains that are received by an individual on the sale of real estate - see under the heading "Capital Gains" for fuller details.
Business Deductions 2018
- 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 between related companies is deductible up to 25% of the income subject to certain exemptions.
- Consolidated Returns -Such returns are not allowed in Finland subject to certain terms.