The year in brief

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The Director General’s review of 2020

In this video, our Director General Markku Heikura is in Sipoonkorpi to talk about our values, our performance in 2020 and our future challenges.

We want to be where our customers are, which is why we decided to shoot this video in a national park, as their significance became emphasised in terms of the happiness and wellbeing of Finnish people during the exceptional year. In this hiking area, one of the most popular attractions in Southern Finland, the Sipoonkorpi bridge connects two municipalities. In this setting, the Director General talks about our values, our performance in 2020 and our future challenges.

The duration of the video is approximately 7 minutes.

The Director General of Finnish Tax Administration Markku Heikura.

Together for the taxpayer – Finnish Tax Administration's Year 2020 (Youtube)

In this video, our Director General Markku Heikura is in Sipoonkorpi to talk about our values, our performance in 2020 and our future challenges.

Tax revenue decreased in 2020

We now have the initial figures for the tax revenue for 2020. The Tax Administration collected a total of €69.2 billion in taxes for the common good. This is 1.6% less than in 2019. The decrease is due to the coronavirus pandemic.

“The decrease in tax revenue is moderate. It looks like we survived last year better than we had feared. The amount of tax collected in the spring of 2020 was clearly smaller than in the previous spring, but in the autumn tax revenue was already much closer to normal,” says Markku Heikura, Director General of the Tax Administration.

The tax revenue figures do not yet show the exact amounts of individual income tax and corporate income tax collected in 2020. We will have the exact figures in the spring as tax returns are filed and the tax assessment process is finalised. For example, taxpayers will file deductions and other expenses affecting the previous year’s tax assessment in ways that are not yet known. The Tax Administration finalises the tax assessment of all taxpayers by the end of October 2021, and then we will have the final figures.

In 2020, most taxes collected were individual income taxes at €31.8 billion. VAT was the second largest source of tax revenue at €18.1 billion. The largest tax recipients were the State of Finland (60%) and the municipalities (34%). Taxes were used for social security, pensions, health care, governance and much more.

For taxation reaching into the future

For several decades now, the Finnish Tax Administration has worked hard for smoother taxation. We have moved on from pencils and stacks of receipts to the era of the digital MyTax service, while technologies have been increasingly harnessed to reduce the tax gap for the common good.

It is no coincidence that Finland is one of the most tax-compliant countries in the world, or that Finland’s tax expertise raises interest in many different countries. The Tax Administration is indisputably a model citizen of the digital age.

The Tax Administration’s systematic work for taxation reaching into the future is highlighted more attractively in the Annual Report.

Our performance in 2020 is particularly reflected in terms of our future strategic goals.