Income taxation - companies and organisations
The legal form of corporate entity of your company or organisation will largely determine its income-tax obligations.
Some entity forms including the limited company (Finnish: osakeyhtiö; Swedish: aktiebolag) and the cooperative society (Finnish: osuuskunta; Swedish: andelslag) are independently liable to pay income tax as taxpayers. Their receipts of income are taxed as income attributable to the entity itself. Corporate income tax rate is 20%. If a limited company distributes dividend to its shareholders, the shareholder-beneficiaries will be taxed as provided by specific rules.
If the corporate entity is an association or a foundation for promoting the public good, any receipts of business income or income derived from real property will be taxable. If an association or foundation is not deemed as an entity promoting the public good, it is liable to pay 20% tax on all income.
The profits are fully taxable as income of the owner-shareholder in the case of a self-employed professional individual, a self-employed business entrepreneur, or a general or limited partnership. The taxable income attributable to the operation of the trade or business is divided between a capital-income portion and an earned-income portion. Capital income is assessed at the 30-percent rate (> €30,000/34%). Earned income is assessed using the progressive scale. The income of an agricultural enterprise is similarly divided into a capital-income portion and an earned-income portion.