Eternity Law International — Ready-made company in Finland

Ready-made company in Finland

Published:
March 30, 2020

What is included:

  • Ready-made company in Finland
  • Bank account at a local bank
  • Legal address for 1 year.

Cost: on request.

Finland is a highly developed country of the European Union.

According to various ratings – in recent years – among highly-developed countries Finland is one of the most competitive for economic development in small countries group, which favorably affects the desire of entrepreneurs to do business in this country.

A company is a resident if it is registered or otherwise established in accordance with the laws of Finland.

Residents are taxed on their income within and beyond the country. Foreign companies are taxed only if their funds came from a Finnish source or they are related to their Finnish permanent establishment.

Income from foreign sources received by residents is levied under corporate tax in the same way as income from domestic sources. Branches are generally taxed in accordance with the principles applicable to subsidiaries.

Income tax is levied on company profits. Ordinary business expenses can be excluded from calculated income that should be ratable. Depreciation of assets is regulated by a whole system of rules.

Entrepreneurs pay 20% of their income under this tax.

Among non-classical taxes, there is a tax on public service broadcasting. Its amount depends on taxable funds during a fiscal year. For example, if company’s income is not more than EUR 50,000 – the rate is 140 EUR.

Income that is over EUR 50,000 – will be additionally levied at a rate 0.35%. The maximum annual tax is not more than 3,000 euros, which is taxed of 868,000 euros or more. This fee is exempt from company’s taxed income.

The total VAT rate is 24%. A reduced rate of 14% applies to food and animal feed. A reduced VAT rate of 14% also applies to restaurant and catering services.

For certain goods and services, a reduced VAT rate of 10% applies (for example, books, subscription to newspapers and magazines lasting one month or more, accommodation, passenger transportation).

In some cases, a zero rate applies (for example, deliveries of goods within the European Union and export of goods). In addition, other services are exempt from VAT. For example: financial, insurance and some educational services.

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