Talk:Taxation in Finland

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Finland

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VAT

As far as I know from Jan. 1st, 2013 the rates are 24%(general), 14%(bread, milk etc.) and 10% (accommodation & transport). I even have some receipts but those don't count as reliable sources. sicarius92 81.175.143.240 (talk) 14:01, 18 March 2013 (UTC)[reply]

Excise Taxes

According to a 2013 brochure of Tulli, there are a couple more tax subjects, altogether:

booze
tobacco products
petrol
electricity and fossil fuel
sweets
beverage containers
waste

If someone takes his time to write about it, he could mention the "Tallinn controversy." Basically, the Finns travel to Tallinn by ferry for ~€12 and purchase alcoholic beverages in volumes [& get drunk]. According to rule of thumb one can "save" the transportation costs merely by buying 10 liters of spirit allowed by EU regulations. sicarius92 81.175.143.240 (talk) 14:30, 18 March 2013 (UTC)[reply]

Tax Transparency in Finland

Like other Nordic countries, Finland has a long history of making the taxes paid by individuals transparent and public. ^[1] Every fall, the national tax authority makes publicly available the amount of taxes paid by individuals, and large newspapers then, based on these records, report the highest earners widely, through services like the Helsingin Sanomat Tax portal.^[2] — Preceding unsigned comment added by Elvira.sihvola (talk • contribs) 17:18, 22 March 2013 (UTC)[reply]

References

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Tax rates listed are wrong

The mean tax rates listed in this article are basically bullshit. No-one is paying 60% on €47000 salary. Please refer to https://avoinomavero.vero.fi/ for information.

Example: living in Espoo in 2020, no kids, civil parish, with €47000/year salary, the tax rate is going to be 21% plus 8.4% unemployment and pension contributions. So 29.4% total income tax.

This article has to be updated. — Preceding unsigned comment added by Pavelbilkis (talk • contribs) 08:10, 26 July 2020 (UTC)[reply]

@Pavelbilkis: Okay. I'll add a template saying that the factual accuracy of the article is disputed. — Mr. Guye (talk) (contribs) 14:38, 21 September 2020 (UTC)[reply]

These numbers don't include taxes and tax-like payments paid by the employer. Unfortunately however the numbers in the table seem to include pension savings, which are not usually counted towards taxes. This table is at best highly politicized. --vuo (talk) 23:56, 21 September 2020 (UTC)[reply]

I guess the payments made by employer is sort of unrelated to the topic of individual taxation?

--Pavelbilkis (talk) 17:51, 28 September 2020 (UTC)[reply]

Income tax is much more complicated.

There is earned income (e.g., wage, pension, benefits), and then there is capital income (e.g., investments, assets) and these two are taxed differently when it comes to state tax.

For a person without capital income, no church tax, no property, there are mainly state tax and municipal tax.

In addition to state tax and municipal tax there are social insurance contributions, such as: pension insurance contributions, unemployment insurance contributions, and health care / daily care contributions. The social insurance contributions are calculated based on your total earned income.

One step before actual taxation is to find your net earned income. It is your total earned income less, most prominently, the travel expenses, and expenses for the production of income (also union memberships).

Now the taxable income. It is worth noting, that state tax and municipal tax is actually not paid on the part of the net earned income that is social insurance contribution, and that the taxable income considered for municipal tax is usually lower than the taxable income considered for state tax by up to 3570 EUR (depends on net taxable income, but is zero if net taxable income > 93333 EUR)

So finally, If your salary is, say 47k as above, you don't actually pay state and municipal tax on 47k.

As an example, a person living in Vantaa with an earned income of 47k, no parish, no property, no capital income, member of a union (423 EUR yearly), travel expenses (to get to work) of 2500 EUR, and additional expenses for the production of income of 2000 (e.g. tools, trainings, work clothes), the calculation goes as follows:

47,000.00 EUR Earned income

-423.00 EUR Union membership

-2,500.00 EUR Travel expenses to get to work (own car)

-2,000.00 EUR Expenses for the production of income

------------------------------------

42,077.00 EUR Net earned income

------------------------------------

-3,360.50 EUR Pension insurance from wages (7.15%, from earned income)

-705.00 EUR Unemployment insurance (1.50%, from earned income)

-554.60 EUR Daily allowance for health insurance (1.18%, from earned income)

------------------------------------

37,456.90 EUR Taxable income, for the purpose of state tax

------------------------------------

(-2,306.54 EUR deductions for municipal taxes(*))

35,150.37 EUR Taxable income, for the purpose of municipal tax

------------------------------------

-2,080.57 EUR State tax (using 2022 progressive table)

-6,678.57 EUR Municipal tax (19%, from taxable income, municipal)

-186.30 EUR Health insurance medical care fee (0.53%, from taxable income, municipal)

-163.00 EUR Public broadcast tax (2.5%, max 163 EUR, from net earned income)

------------------------------------

Finally:

47,000.00 EUR Earned income

-2,080.57 EUR State tax (using 2022 progressive table)

-6,678.57 EUR Municipal tax (19% Vantaa)

-3,360.50 EUR Pension insurance from wages (7.15%)

-705.00 EUR Unemployment insurance (1.50%)

-554.60 EUR Daily allowance for health insurance (1.18%)

-186.30 EUR Health insurance medical care fee (0.53%, from taxable income, municipal)

-163.00 EUR Public broadcast tax (2.5%, max 163 EUR, from net earned income)

47000.00-2080.57-6678.57-3360.50-705.00-554.60-186.30-163.00 = 33271.46 EUR in pocket

rounded, 29.2% total taxes and contributions

(*): Act on Tax Administration (503/2010) § 2 subsection 2 part 5.4 Kunnallisverotuksen ansiotulovähennys 212.209.144.42 (talk) 17:21, 22 August 2023 (UTC)[reply]

I updated the Income Tax section with all the deduction mishmash (though it doesn't cover all the nuances). I have to say the Tax Administration's websites don't give much help in determining how the fees should be reasonably translated. -- Puisque (talk) 15:31, 5 May 2024 (UTC)[reply]

@Pavelbilkis: Hey Pavel. I have made some major edits on the structure of the article, starting with listing taxes on gross income. I am not sure how to address the somewhat contentious issue of "a 60% tax rate", but I added that discussion in the very beginning of the section where the article discusses taxes that are levied on income – should you take into account only those that are cut out of what the employee gets or also those that are basically cut out the employer's revenues. I am not sure how the contents of Total tax burden on labour should be incorporated into the article, but in general, I wouldn't consider Veronmaksajat a fully reliable source. Not by one bit. All the figures they give are mostly correct, BUT that's not the whole picture. For example, the employer's unemployment insurance fees depend on the size of the employing entity. Secondly, the municipal and church tax rates vary - if you even are member of the church. Veronmaksajat tends to exaggerate the income tax burden, completely ignoring that employers and employees are basically required to pay for all kinds of things in every country on Earth, without making any comprehensive comparisons to other countries. You have any thoughts? I have done my best in diving into the tax law, and I bet there is tons of more to be done to improve the quality of the article. (Sorry if this is TLDR.:D) -- Puisque (talk) 22:21, 27 May 2024 (UTC)[reply]

[1] ttp://taxjustice.blogspot.com/2011/11/finland-publishes-all-personal-tax.html

[2] ttp://www.hs.fi/verotiedot/list.do

[1]

[2]