This article presents a detailed overview of the corporate tax regime in Finland as of 2025. All essential statutory rates, surcharges, and compliance notes for companies operating in Finland are summarised and explained below.
Corporate Taxation in Finland: Key Features for 2025
Given Finland’s reputation for a comprehensive fiscal framework, companies considering establishing operations here should be aware of the core aspects of corporate income taxation. The Finnish system imposes a consistent approach with defined rates and basis for assessment.
Corporate Tax Rate and Levy Structure
Corporate tax in Finland is applied at a flat rate. The assessment is made based on corporate taxable profits, without progressive brackets. The main features for 2025 are summarised in the table below:
| Tax Component | Rate / Threshold | Currency (EUR) | Description |
|---|---|---|---|
| Main Corporate Tax Rate | 20% | € | Flat rate applied to corporate taxable profit |
| Public Service Broadcasting Tax (YLE Tax) | 0.35% | € | Levy on taxable income exceeding €50,000; capped at €3,000 per year |
There are no graduated brackets or additional general surtaxes applied to corporate profits apart from the YLE tax noted above.
Additional Surtaxes: The YLE Tax Explained
Finland imposes a specific surcharge in the form of the Public Service Broadcasting Tax (YLE tax). This is relevant for companies with taxable income above a certain threshold:
- Applied Rate: 0.35% of taxable income above €50,000 annually
- Maximum Liability: €3,000 per year
- This surcharge is unique to support public broadcasting and applies on top of the 20% flat corporate tax rate.
Tax Basis and Assessment Method
The Finnish corporate tax regime is assessed strictly at the corporate entity level. Taxable income is determined in accordance with Finnish accounting and tax law standards. No minimum or maximum holding period requirements were indicated in the latest available data for 2025.
Summary Table: Corporate Tax in Finland (2025)
| Parameter | Details / Rate | Currency / Unit |
|---|---|---|
| Assessment Basis | Corporate profits | – |
| Flat Rate | 20% | € (EUR) |
| Progressive Brackets | Not applicable | – |
| Public Service Broadcasting (YLE) Surtax | 0.35% on income > €50,000 (max €3,000/year) | € (EUR) |
| Minimum/Maximum Holding Period | Not specified in available data | – |
For international context, at an average exchange rate of 1 EUR ≈ 1.08 USD (April 2025), the main corporate tax rate equates to approximately 21.6% (USD).
Pro Tips for Tax Compliance and Planning in Finland
- Ensure accurate and timely reporting of taxable profits to avoid complications with the Finnish Tax Administration (vero.fi).
- Monitor annual taxable income closely if you approach or surpass the €50,000 threshold, as the YLE tax applies beyond this point and is subject to a yearly cap.
- There are no progressive brackets; your effective tax rate is generally stable beyond basic deductions and surtaxes, facilitating straightforward tax planning.
- Reinvested or retained earnings inside the corporate entity continue to be taxed at the flat rate unless special rules apply; always confirm with updated regulations for new fiscal years.
Where to Find Official Information
The most authoritative source for corporate tax guidance in Finland is the Finnish Tax Administration (Vero). For updates or clarifications, always refer to the main website above.
In summary, corporate taxation in Finland as of 2025 is distinguished by a flat 20% rate with only one notable surcharge—the YLE tax affecting mid- to high-profit companies. No progressive brackets or additional holding requirements are specified in the present framework. Staying informed on annual thresholds and reporting standards will enable straightforward compliance in this jurisdiction, provided you keep an eye on your company’s taxable income and relevant statutory updates.