The 1Office tax consultation team is often asked about tax rates. Therefore we have put together a comparison table of the most common taxes in Finland, Sweden, Estonia and in the United Kingdom in 2017.
Corporate taxes
| Tax rates | Estonia | Finland | Sweden | UK |
| VAT | 20%, threshold 16,000 EUR | 24%, threshold 10,000 EUR | 25%, no threshold | 20%, threshold 83,000 GBP |
| VAT reduced rate | 9%, books, press, accommodation, medicine | 14%, grocery 10% public transportation, cultural events | 12%, grocery, catering and accommodation 6%, public transportatio, books, cultural events, tickets | 5%, electricity, gas and heating oil for non-business use, energy-saving materials for residential purpose, certain personal hygiene items, certain building work with respect to residential dwellings |
| VAT zero rate and exempt from VAT | postal, insurance, healthcare and social services, aviation | postal, insurance and social services | healthcare, dental care, social services, education, banking, insurance, aviation | public transport, most food items, printed newspapers/books/magazines, children’s clothing, certain building work with respect to residential dwellings, insurance, financial services, direct-mail postage services |
| Corporate income tax | 20% (taxation deferred until distribution of profit) | 20% | 22% | 19% |
| Dividend income tax | gross rate 20% | progressive 7.5%, 27% | 30% | N/A |
| Fringe benefits taxation | 20% (business related representation costs); 20% income tax and 33% social tax (employee gifts and benefits) | N/A | N/A | most employee benefits are treated as employment income, subject to personal income tax and Employers’ National Insurance |
| Obligatory pension contribution | N/A | 18.95% (years 17-52) | Included in the social security contributions | N/A |
| 17.45% (years 53-62) | ||||
| 18.95% (years 63-67) | ||||
| Workplace pension contributions | N/A | N/A | N/A | Total minimum contribution of 2% with at least 1% employer contribution |
| Social security contributions | 33%, unemployment tax 0.8% | 1.08%, unemployment tax 0.8%; collective life insurance 0.07%; accident insurance 0.8% | 31.42% | progressive Employers’ National Insurance: 0%, 13.8% regressive Employee National Insurance: 0%, 12%, 2% |
Personal taxes
| Tax rates | Estonia | Finland | Sweden | UK |
| Personal income tax | 20% | progressive | progressive | Dividends: 0%, 7.5%, 32.5%, 38.1% Other income: 0%, 20%, 40%, 45% |
| Capital gains tax | 20% | progressive | 30% | Sale of residential property: 0%, 18%, 28% Other capital gains: 0%, 10%, 20% |
| Obligatory pension contribution (employee) | 2% | 6.15% (years 17-52) | N/A | N/A |
| 7.65% (years 53-62) | ||||
| 6.15% (years 63-67) | ||||
| Workplace pension contributions | N/A | N/A | N/A | Total minimum contribution of 2% with at least 1% employer contribution. |
| Unemployment tax (employee) | 1.60% | 1.6% | N/A | N/A |
Audit obligation
| Country | Finland | Sweden |
| Conditions | At least 2 out of 3 | At least 2 out of 3 during two consecutive financial years |
| Sales revenue | > 200,000 EUR | > 3,000,000 SEK |
| Assets | > 100,000 EUR | > 1,500,000 SEK |
| Employees | > 3 | > 3 |
The audit or review of an annual report is mandatory if at least two of the indicators provided in the annual statement exceed the following conditions:
| Estonia | Audit | Review |
| Sales revenue | > 2,000,000 EUR | > 1,000,000 EUR |
| Assets | > 1,000,000 EUR | > 500,000 EUR |
| Employees | > 30 | > 15 |
The audit or review is mandatory, if at least one of the indicators provided in its annual statement exceeds the following conditions:
| Estonia | Audit | Review |
| Sales revenue | > 6,000,000 EUR | > 3,000,000 EUR |
| Assets | > 3,000,000 EUR | > 1,500,000 EUR |
| Employees | > 90 | > 45 |
Companies that qualify as small companies under Companies Act 2006 are usually exempt from audit unless they are members of a group or are charities and required to follow the charity audit thresholds.
The audit or review is mandatory, if two out of three of the indicators provided in its annual statement exceeds the following conditions:
| United Kingdom | Audit |
| Sales revenue | > 10,200,000 GBP |
| Assets | > 5,100,000 GBP |
| Employees | > 50 |
These tables are to be considered informative and general. Please notice that tax rates can change and in case of further question, please contact us via e-mail sales@1office.co.
