Kirjanpitofoorumi

Hi

I want to know the Finnish name and rate of effective corporate tax rate in Finland.

thank you

Corporate tax rate might be "yhteisöverokanta" or "yritysveroaste", but I'm not sure what term would be used for "effective" in this context, maybe something like "tosiasiallinen".

For companies like limited liability companies, cooperative societies and non-mutual real estate companies the tax rate is at the moment a flat 20% and called "yhteisövero" or "yhteisön tulovero". I think these are the corporations You a referring to.

Other company forms, such as business operators, self-employed persons and business partnerships are taxed in different way. In those the tax is imposed on the individuals behind the companies, not for the company itself and the tax is mostly progressive since the income is mostly taxed as persons earned income.

If effective tax rate is defined as "the tax paid by company divided by it's profit", then in a theoretical case where the accounting profit is the same as taxable profit, the effective tax rate would be the same as the corporate tax 20%. Because there is a multitude of differences between the accounting profit and taxable profit, the effective tax rate is something different if I've understood the effective tax rate correctly. However I've gathered that the definition of "effective tax rate" is not set in stone.