The Finnish Tax Office (Verohallinto) is the organization that calculates and collects taxes. The tax administration in Finland collects up to 2/3 of taxes in the country, the rest of the duties are collected by customs and the transport and communications agency.
Each resident of the Republic of Finland must pay several fees to the budget, as well as fees equivalent to taxes. Finns pay taxes on salaries, pensions and unemployment benefits. The tax period in Finland is 1 year, all rates and deductions are calculated on annual income.
Work of the Finnish tax authorities
The activities of the Finnish tax authorities are controlled and regulated by the Ministry of Finance.
Tax offices (Verotoimisto) are responsible for managing the tax affairs of taxpayers. Here you can apply for and receive a taxpayer card, make adjustments to the tax rate, and get an answer to questions about the calculation and payment of taxes.
The OmaVero online resource is the portal of the Finnish tax office. Here you can resolve tax issues online. You can receive a tax card on the OmaVero platform if you have an access code for Internet banking.
Finnish employers withhold taxes from the employee’s salary in accordance with the tax rate indicated on the tax payer’s card. If the employee does not provide the employer with a taxpayer card, then 60% of the tax will be withheld from his salary.
An employment contract indicating the salary amount must also be provided to the Finnish Tax Office.
In March–April, the Finnish tax administration sends partially completed tax returns by mail. The document indicates calculations based on information received from employers, financial organizations, insurance agencies and the pension department. If the data specified in the declaration is incorrect or incomplete, the taxpayer can make adjustments and return the document to the tax authority. After a while, the tax return, corrected and supplemented, will again come to the taxpayer by mail. If all the information in the declaration is correct, then the document does not need to be returned.
Features of the work of tax authorities in Finland
Tax audits are carried out regularly in Finland. Each company is inspected on average every five to ten years. A tax audit is conducted by an inspector or even a group of tax experts. The results of the inspection are presented in a written report. The audited company has the right to argue with reason the conclusion of a representative of the Finnish Tax Service, if necessary. If the company’s management agrees with the results of the tax audit, then there is no need to give an official response to the report. If, as a result of a tax audit, violations are revealed, then sanctions may be applied to the company.
Information is exchanged between the tax services of the Russian Federation and Finland. The exchange of financial information is carried out automatically in order to avoid cases of double taxation, as well as to carry out coordinated tax control activities.
Foreigners staying in the country for a long time (more than six months) are defined by the State Tax Service of Finland as tax residents. Foreigners who come to work on a fixed-term contract (less than six months) are considered non-residents of Finland.
Finnish tax and contribution rates are revised every year. There are no big changes, but the exact percentage may vary.
The level of taxes in Finland is considered high even by European standards. However, Suomi tax legislation is gradually being improved and brought into line with the unified European system.