Terve suomalaiset.
long story short, i calculated my toiminimi taxes alone and i'd be happy to know if I forgot anything..

  1. paying YEL, based on my work input of 1760 hours multiplied by the hourly rate. fully deductible.
  2. VAT (forget about it as i reverse charge another business in the EU)
  3. i barley have business expenses as i work from home, so assume no business expenses deductions for now. Are there tax benefits if you work from home?
  4. now whatever is left, is being income taxed based on this table? or are there different brackets for Toiminimi?

tax brackets in Finland

Did I forget any tax?

(i'm not a member of a church)

  • anyone knows a good accountant in Rovaniemi?
  • is it true that if i operate toiminimi for less than 4 months i don't have to pay for YEL? do i need to declare it to anyone or i just don't insure myself

by tamir70s

2 comments

  1. Yes. Toiminimi pays income tax same as a regular employee. You don’t have to worry about the amount of taxes paid much because verottaja will calculate that for you. You’ll just need to make sure that you’ll report the required information correctly.

  2. Unless you plan on residing in Finland for the rest of your life and have absolute confidence in the pension system working 40 years from now, don’t bother paying extensive YEL fees based on your hourly rate.

    As a starting business with no income you may sign up for the minimum YEL fee of ~8500 euros. The pension company then makes yearly checks on your “YEL income”, and may adjust your YEL fee at most +4000 euros at a time. [More about this in Finnish](https://www.mikrojayksinyrittajat.fi/yel/).

    You can put your home internet connection, hardware purchased, anything plausibly related to the business in your expenses.

    This is not accounting or legal advice.

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