Finland Value Added Tax
- In most cases the standard VAT is 24%.
- There are reduced rates of VAT of 14% charged on food restaurants and catering and a super reduced rate of 10% charged on public transport services, books ,minor repairs and medicines.
- VAT is charged on assets and services in Finland as well as on imports into Finland.
- VAT returns are made monthly, the payment being due on the 15th of the month after the month of the report.
- There is an obligation to report to VAT authorities when the annual turnover is in excess of EURO 10,000.
Inheritance Tax/Gift Tax
- Tax is payable in Finland on both an inheritance and on gifts on the application of fairly similar tax principles.
- When either the donor of the gift/the testator or the recipient of the gift/the heir is a Finnish resident, the tax is also applicable to overseas assets.
- When neither the donor of the gift/the testator or the recipient of the gift/the heir is a Finnish resident, the tax applies only to real estate in Finland or shares in a company of which 50% of its assets are real estate inside Finland.
- When the tax is applicable in a foreign country, the overseas tax will be credited against the tax due in Finland unless it refers to real estate in Finland.
- As a general rule, recipients of gifts / heirs are divided into two groups:
- Group 1 - a spouse, children, grandchildren and parents.
- Group 2 - all others.
- In general, the rate of tax for Group 2 is much higher than Group 1.
- The rates of inheritance tax for Group 1 in EURO are as below:
|Taxable Income||Tax on the Lowest Bracket||% Tax - Balance|
|0 - 20,000||0||0|
- In Finland there is a Double Tax Prevention Treaty on inheritance tax with the Nordic Countries, the United States of America, Holland, France and Switzerland.
- In Finland there is a Double Tax Prevention Treaty on gifts tax with the Nordic Countries and with Greece only in the case of real estate.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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