Tax Basics in Finland for New Business Owners
Last updated: 11 November 2026
A Finnish limited liability company (Oy) has its own tax obligations. Before you start invoicing, arrange bookkeeping, review the company’s tax registrations and agree who handles each filing and payment.
Corporate income tax
For the 2026 tax year, Finnish limited companies pay corporate income tax at 20% on taxable profit. This is a tax on profit, not on turnover. The company is a separate taxpayer from its owners. Salary and dividends paid to an owner have their own tax treatment, and company funds cannot simply be withdrawn for private use without tax consequences.
Tax prepayments
A new company’s income tax prepayments are based on its estimated taxable profit. Review the estimate as the business develops and request a change when needed. Keeping the estimate realistic helps avoid unexpected tax bills later.
VAT registration
VAT obligations depend on the company’s sales, turnover and type of business. Some activities are exempt, and international transactions can create additional obligations. Check registration requirements and the correct VAT treatment before issuing invoices. Once registered, keep track of VAT return periods and payment deadlines.
Bookkeeping, payroll and annual filings
Keep business and personal transactions separate and retain the supporting documents. Agree with your accountant how sales, purchases, expenses and payroll will be recorded. If the company pays wages, check withholding, employer contributions and Incomes Register reporting before the first payment.
A limited company must submit its income tax return for each accounting period, including periods with no business activity. Do not assume that an inactive company has no reporting duties.
A practical checklist before trading
- Appoint an accountant and agree the division of responsibilities.
- Check VAT, prepayment and employer registration needs.
- Confirm access to MyTax and any authorisations your accountant needs.
- Set aside cash for taxes and review the profit estimate regularly.
Buying a ready-made company does not remove these ongoing obligations. Check the company’s existing registrations and filing status as part of the handover.
Official guidance
Finnish Tax Administration: corporate income tax
Finnish Tax Administration: VAT registration
Finnish Tax Administration: income tax returns