Tax revenue is the public sector’s most significant source of income.
Decisions concerning Finnish taxation are made by the Finnish Parliament and European Union. Tax legislation is drafted by the Ministry of Finance and enacted by Parliament.
The Tax Administration collects approximately 95 % of all taxes and tax-like payments in Finland. In addition to the Tax Administration, taxes and tax-like payments are also collected by Finnish Customs and the Finnish Transport Safety Agency (Traficom).
The purpose of the Tax Administration is to collect the right tax at the right time, so as to ensure our society has the financial resources it needs to function. It is for this reason that we seek to minimise the tax gap through credible tax control; and it is why it is important to maintain a culture of tax compliance, by impressing on people the importance of taxation in society.
Proactive guidance, excellent service and credible tax control ensure the accrual of tax revenues. The goal is to have taxpayers handle tax-related transactions independently and in the correct manner.
The Finnish Tax Administration carries social responsibility in various ways. Combating the shadow economy plays an important role in the Tax Administration’s operations.