A faith tax exists in a number of countries, including Finland. If a Finnish citizen does not wish to pay church tax, he must provide an official statement of resignation from the denomination with a copy to the tax authorities.
Finnish church tax
Today’s church income in Finland ranges from 1 – 2.25% of personal income of individuals. The rate is determined by the local municipality. Church tax is also paid by corporations, regardless of their religious status.
In Suomi, citizens are baptized at birth and everyone is required to pay church tax. As adults, Finns realize that if the church does not play any role in their lives, then there is no need to pay taxes on its maintenance. If a person is a church member at the beginning of the year, he will pay taxes for the entire current year.
There are several ways to waive church taxes. The most popular way is to apply on the online service Eroakirkosta.fi. On this site, parishioners of the Evangelical Lutheran Church (ELC) can express their will. According to statistics, ELC parishioners make up 72%. 1.1% of the population consider themselves to belong to the Orthodox Church of Finland, and 1.6% to other denominations. 25.3% of Finns do not belong to any religious community, and their share is constantly growing.
Church tax in Finland (Kirkollisvero) is levied on the income of parishioners of the Finnish Evangelical Lutheran and Orthodox churches. Swedish citizens living in Finland pay tax to the Parish of Olaus Petri.
The ELC and the Orthodox Church in Finland have a special status that allows them to collect taxes from their members. These fees are collected by the authorities along with state and municipal fees. Other religious institutions must finance their own existence. In addition, the state provides additional support to the Orthodox and Evangelical Lutheran churches in the form of funds for the maintenance of cemeteries and ancient buildings.
Religious tax in Finland forms 78% of the budget of the Finnish Lutheran Church.
A wave of church exits began in Finland in 2013, when the YLE (broadcasting) tax was introduced. The television tax rate is 0.68% of an individual’s annual income (on average 50 – 140 euros). The introduction of another mandatory tax prompted many Finns to leave the ranks of believers.
Did the church in Finland pay taxes? The Orthodox Church of Finland, having some benefits, still pays taxes:
- Tax on profits from a number of religious practices.
- There is a tax on alcoholic beverages produced by monasteries.
- The tax is levied on the sale of medicines and perfumes produced by a religious organization.
- Transport tax.
- Collection on income from affiliated religious organizations.
The church attendance tax is a direct tax, of which there are only about 25 in Finland. Direct taxes also include corporate tax, income tax, capital income, pension fund tax, and social security tax.