The Finnish Tax Administration’s logo in Helsinki on 7 November 2024. The Tax Administration has reminded that numerous tax-related changes, including substantial cuts in the tax credit for household expenses, will come into effect on 1 January 2025. (Antti Aimo-Koivisto – Lehtikuva)
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THE NEW YEAR will bring a number of changes to taxation in Finland.
The Finnish Tax Administration reminded earlier this month that the tax credit for household expenses will be lowered from a maximum of 2,250 euros to 1,600 euros for renovations and from a maximum of 3,500 to 1,600 euros for care, nursing, household work and physical therapy.
The credit will amount to 35 per cent of the expenses, signalling a reduction of five percentage points for renovations and 25 percentage points for care, nursing, household work and physical therapy. The credit threshold, meanwhile, will rise from 100 to 150 euros.
The increased credit – 60 per cent of the expenses up to 3,500 euros a year – will remain available only for households transitioning away from oil heating.
Next year is also set to bring price increases as products such as books, medications, exercise services and transport fares will be moved from the 10-per-cent to the 14-per-cent value-added tax scheme. On the other hand, the value-added tax on diapers, menstrual hygiene products and incontinence protection will be lowered from 25.5 to 14 per cent.
The tax on alcohol and tobacco products will be raised gradually in 2025–2027.
Small businesses will be affected by changes to value-added tax liability rules. Businesses will be required to register for value-added tax if their turnover for the calendar year exceeds 20,000 euros. Previously the requirement has applied to businesses with a turnover of at least 15,000 euros for the 11-month accounting period.
The value-added tax relief scheme, which has been available to companies with a turnover of less than 30,000 euros, will be scrapped.
One of the first visible changes for taxpayers is that the tax card will come into effect in January rather than in February. The Finnish Tax Administration said the change will make it easier to keep track of the tax rate and income ceiling, along with the long-requested change of calculating the ceiling for the full year instead of 11 months.
The filing deadlines for pre-completed tax returns will be moved forward by about three weeks to 15, 22 and 29 April. The deadline for confirming real estate tax returns will be moved forward to 15 April.
The filing deadlines will not change for corporations, self-employed individuals and agricultural and forestry operators.
Aleksi Teivainen – HT
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Source: www.helsinkitimes.fi
