Taxation in Finland is mainly carried out through the Finnish Tax Administration, an agency of the Ministry of Finance.
Taxes collected are distributed to the Government, municipalities, church, and the Social Insurance Institution, Kela.
Every person that is 17–68 years of age[10] and gets a salary as an employee[11] pays a certain amount of pension insurance fee on their gross income.
[12] The exact percentage is set annually by a decree of the Ministry of Social Affairs and Health.
[citation needed] The Finnish system does not provide for voluntary contributions or employer matching.
The exact percentages of the fees are set by law to a level that secures the Employment Fund's (Työllisyysrahasto) ability to pay out unemployment benefits, and in 2025 the fees are as follows: Every person who is 16–68 years of age[18] and works as an employee in Finland[19] is required to pay the health insurance daily allowance contribution on their gross earned income.
[12] The pension insurance fees withheld by public-sector employers are paid to the dedicated agency Keva.
Anyone who has arrived in Finland and stayed longer than 6 months will become, from Tax Administrator's view, a resident.
The residents' worldwide income is subject to Finnish tax, so that no distinction exists between the source country.
The Finnish Tax Administration is entitled to enter information into the Population Register System and distribute identity codes jointly with Local Register Offices if the matter concerns foreigners who arrive for temporary periods, i.e. less than one year to work in Finland.
[44] Salaries or grants paid by the European Union bodies, such as European Chemicals Agency in Helsinki, are tax-free in Finland and do not need to be reported to the Finnish Tax Administration or Finnish social security, regardless of residency.
The proportion of dividends from a listed (publicly traded) company subject to capital income tax depends on whether the share is owned via a book-entry account (arvo-osuustili) or an equity savings account (osakesäästötili).
Via an equity savings account, one can own only shares of listed companies[47] and the owner can be only a natural person.
[48] 15% of dividends from listed companies to a private person are tax-exempt if the shares are owned via a book-entry account[49] and the rest is subject to the capital income tax.
[46] The entire dividend from a listed company to a private person is subject to the capital income tax if the share is owned via an equity savings account.
[52] If the dividend from an unlisted company paid to a natural person adds up to 8% or less of the mathematical value (net assets) of the company, 75% of the dividend is tax-exempt and the rest is subject to the capital income tax (30% or 34%), rendering effectively a 7.5% capital income tax rate at minimum.
From 2016 onwards, the direct tax distribution was abolished and it was replaced by a fixed annual state subsidy that is €105-million in 2025 follows the Finnish Consumer Price Index.
[58] The tax on soil is generally 1.30–2.00%,[59] but the municipality can set it at 2.00–6.00%, if the property is undeveloped and certain legal requirements are met.
[66] Excise taxes (valmistevero) are in place for alcohol, tobacco, sweets, lotteries, insurances, transport fuels and automobiles (2011).
Tax Administration authority is required to submit information for free if request is targeted.
In 2014, Finnwatch estimated that 60–70% (€37 billion) of Finnish pension funds were invested in tax havens.[69][relevant?]