Europe

Finland

Corporate rate
20%
Top personal rate
52%
VAT / GST rate
25.5%
One-sentence summary Finland's corporate tax position: 20. Personal income tax: residents up to ~52%; non-residents 35%. VAT/consumption tax: 25.5.

Corporate Tax Rate

Finland's headline corporate income tax (CIT) rate is 20.

Personal Tax Rate

The headline personal income tax (PIT) rate is residents up to ~52%; non-residents 35%.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 25.5. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

An individual is a Finnish tax resident if their permanent home is in Finland, or if they stay in Finland continuously for more than six months (a non-resident is defined as someone abroad staying in Finland six months or less). Residents are taxed on worldwide income; non-residents on Finland-source income only, generally at a 35% source tax on earned income (though those resident in another EU/EEA state or a treaty country may request progressive taxation instead).

CFC Rules

Finland's CFC regime (amended 2019, stricter than the EU ATAD minimum) applies where a Finnish resident holds, alone or with related parties, at least 25% of the capital or profit entitlement of a foreign entity, and that entity's effective tax rate is below three-fifths of the comparable Finnish rate (roughly 12%, given Finland's 20% corporate rate). The CFC's net income is then taxable to the Finnish shareholder as it accrues, with actual distributions later exempted to avoid double taxation; withholding tax on CFC dividends is creditable against the CFC income. Two escape rules exempt genuinely substantive entities: one for entities within the EEA carrying out genuine economic activity there, and a narrower one for non-EEA entities in a cooperative, information-exchanging jurisdiction whose income derives primarily from industrial production, shipping, or intra-group trade within that jurisdiction.

Thin Capitalization / Interest Limitation

Finland has no formal thin capitalization rule; an EU ATAD-based interest limitation rule applies instead. Net financing expenses are fully deductible up to EUR 500,000; above that, deductibility is capped at 25% of adjusted taxable income (EBITDA), though net interest paid to non-group-related parties remains deductible up to EUR 3,000,000 regardless. A balance-sheet exemption allows full interest deductibility where the company's equity-to-assets ratio meets or exceeds a specified test.

Treaty Network

Finland maintains double tax treaties with more than 70 countries.

Source: PwC Worldwide Tax Summaries - Finland (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 18 December 2025. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.