Every company registered in Finland has the same accounting obligations regardless of whether it is a one-person Oy run by a foreign founder or a growing Finnish business with a full team. Bookkeeping must be maintained from the date of registration. Annual declarations must be filed with the Finnish Tax Administration. VAT returns must be submitted if the company is VAT-registered. Annual accounts must be prepared, signed, and filed with the Finnish Trade Register. And the corporate income tax return must reach Verohallinto within four months of the financial year end. This guide explains each of those obligations clearly, in English, so you know exactly what accounting in Finland requires and how 1Office handles it for you.
The Basics
How accounting in Finland works for a Finnish Oy
Finland requires every registered company to maintain double-entry bookkeeping under the Finnish Accounting Act (kirjanpitolaki). This obligation begins on the day the company is registered in the Finnish Trade Register and continues until the company is formally dissolved. There is no grace period, no simplified regime for dormant companies, and no exemption for foreign-owned companies whose owners live outside Finland.
Finnish accounting must follow Finnish Accounting Standards (FAS) unless the company qualifies and elects to use International Financial Reporting Standards (IFRS). For the overwhelming majority of small and medium Finnish Oys, particularly those owned by international founders, FAS applies. All accounting records must be maintained in Finnish or Swedish, and all amounts must be recorded in euros.
What Finnish bookkeeping must include
Finnish bookkeeping requirements are detailed and specific. Every financial transaction must be recorded. Bank accounts must be reconciled. Income and expenses must be categorised correctly under the Finnish chart of accounts. Supporting documentation (invoices, receipts, contracts) must be retained for six years after the end of the accounting period. Electronic records are fully accepted. Physical presence in Finland is not required to maintain compliant books, which is why international founders increasingly use remote Finnish accounting firms like 1Office.
The accounting period in Finland
A Finnish company's accounting period (tilikausi) is typically 12 months. The most common choice is the calendar year (1 January to 31 December), but other year-end dates are permitted. The accounting period is set when the company is registered and can only be changed under specific circumstances. All annual reporting and tax deadlines are calculated from the end of the accounting period, making the choice of year-end a practical decision as much as an administrative one.
Finnish accounting requirements are specific to Finnish law. Accounting software set up for UK, Estonian, or German standards does not automatically produce compliant Finnish output. The chart of accounts, VAT coding, payroll declarations, and annual report format all follow Finnish-specific rules. 1Office Finland provides accounting services in English, handled by a Finnish-qualified team who file directly with Verohallinto and PRH on your behalf.
1Office Finland provides monthly bookkeeping, VAT, payroll and annual reports in English.
Annual Declarations
Annual declarations in Finland: what you must file and when
The term "annual declaration" in the context of Finnish company accounting covers two separate but related obligations that fall at the same time each year. Understanding the distinction between them is important because they are filed with different authorities for different purposes.
The corporate income tax return (veroilmoitus)
Every Finnish limited company must file a corporate income tax return with Verohallinto (the Finnish Tax Administration) each year. For companies using the standard calendar financial year, this annual declaration is due by 30 April. The tax return is filed through the OmaVero (MyTax) portal using Form 6B. It reports the company's taxable income, deductions, and the calculation of corporate income tax owed at the rate of 20% for tax year 2026. From January 2027, the rate drops to 18% following the Finnish government's confirmed corporate tax reform.
Companies working with an authorised tax advisor (such as 1Office Finland) may benefit from an automatic filing extension to the end of May, provided the tax advisor relationship is registered with Verohallinto before the original deadline. This extension applies to the tax return only, not to the annual accounts filing with PRH.
The annual report (tilinpäätös) filed with PRH
The tilinpäätös is the annual financial statements of the company, balance sheet, income statement, and notes to the accounts, prepared under Finnish Accounting Standards. It is a public document filed with the Finnish Patent and Registration Office (PRH). The filing deadline is four months after the end of the financial year, which means 30 April for calendar-year companies. PRH does not begin charging a late fee until eight months after year-end, but the four-month deadline is the legal preparation and approval deadline, not a filing extension.
Before the tilinpäätös can be filed with PRH, it must be signed by all board members, presented to and approved at the annual general meeting (AGM), and in some cases reviewed by an auditor. For foreign-owned companies with boards located outside Finland, coordinating these steps well before the April deadline is essential.
The veroilmoitus goes to Verohallinto. The tilinpäätös goes to PRH. Both are due within four months of your financial year end. Both must be based on the same finalised bookkeeping. Missing either obligation triggers separate penalty processes from two different Finnish authorities. 1Office Finland manages both filings simultaneously as part of the annual report service.
1Office Finland prepares and files tilinpäätös and veroilmoitus as a standalone service, even if your books are elsewhere.
VAT in Finland
VAT registration and VAT accounting for Finnish companies
VAT (arvonlisävero, ALV) is mandatory for Finnish companies once annual taxable turnover exceeds €15,000. This threshold is among the lowest in the EU, which means most active Finnish companies reach the registration obligation quickly. VAT registration is handled through OmaVero and is typically processed within a few days of application. 1Office Finland handles VAT registration as part of all formation and accounting packages.
Finnish VAT rates in 2026
| Rate | Applies to |
|---|---|
| 25.5% | Standard rate. Applies to most goods and services not covered by reduced rates. |
| 13.5% | Reduced rate. Applies to food, animal feed, restaurant services, hotel accommodation, and certain agricultural inputs. |
| 10% | Reduced rate. Applies to books, pharmaceuticals, physical exercise services, theatre and cinema tickets, and passenger transport. |
| 0% | Applies to intra-EU sales to VAT-registered buyers, exports outside the EU, and certain other zero-rated supplies under Finnish VAT law. |
Finland raised its standard VAT rate from 24% to 25.5% on 1 September 2024. This change applies to all companies registered for VAT in Finland. The food and accommodation reduced rate also changed from 14% to 13.5% at the same time.
VAT filing frequency
Finnish VAT returns are filed monthly, quarterly, or annually depending on the company's annual turnover. Monthly filing applies to companies with turnover above €100,000. Quarterly filing applies to companies with turnover between €30,000 and €100,000. Annual filing is available for companies with turnover below €30,000. The filing period can be changed if turnover thresholds change. VAT returns are due by the 12th of the second month following the reporting period for monthly and quarterly filers. 1Office Finland manages all VAT return preparation and filing as part of the accounting service.
VAT for B2B sales within the EU
When a Finnish Oy sells goods or services to a VAT-registered business in another EU member state, the supply is generally zero-rated in Finland and the VAT obligation shifts to the buyer under the reverse charge mechanism. The Finnish company must include these sales in its periodic tax return (kausiveroilmoitus) and in the EU sales list (yhteenvetoilmoitus). If your Finnish company sells digital services to consumers in other EU countries, the EU VAT One Stop Shop (OSS) scheme may be relevant. 1Office Finland advises on the correct VAT treatment for cross-border supplies as part of the accounting service.
1Office handles VAT registration with Verohallinto and all monthly or quarterly VAT returns.
Payroll
Payroll accounting and employer obligations in Finland
If your Finnish company has employees or pays salary to a director, Finnish payroll accounting applies from the first payment. Finnish payroll is more complex than in many other jurisdictions because it involves multiple simultaneous obligations to both Verohallinto and various insurance institutions.
Employer registration with Verohallinto
Before paying any salary, the company must register as an employer with Verohallinto. Regular employers (making monthly payroll payments) register as permanent employers. Companies paying salary occasionally, for example, a sole director taking a salary only a few times per year, may register as occasional employers. The registration determines the reporting frequency and the deadlines that apply.
Monthly payroll declarations
From 2019, Finland operates an Incomes Register (tulorekisteri), which requires employers to report every salary payment within five calendar days of the payment date. This real-time reporting replaces the old annual salary certificates and makes payroll compliance a continuous process rather than an annual one. 1Office Finland handles incomes register reporting as part of the payroll service.
Employer social contributions
Finnish employer social contributions in 2026 include pension insurance (TyEL) at approximately 17.39% of gross salary for the employer portion, unemployment insurance at 0.25% for employers with total payroll under €2.34 million, health insurance contribution (sairausvakuutusmaksu), and accident insurance. The combined employer cost is typically 20 to 25% on top of the gross salary, depending on the employee's age and the insurance provider. 1Office Finland calculates all employer contributions and files the required declarations.
Virtual Office
Virtual office in Finland: what it is and why your company needs one
Every Finnish company must have a registered business address in Finland listed in the Finnish Trade Register. This address is publicly visible and is used for official correspondence from Verohallinto, PRH, and other Finnish authorities. For international founders and companies without a physical office in Finland, a virtual office address is the standard solution.
What a virtual office address in Finland provides
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A compliant Finnish business address. The address satisfies the Finnish Trade Register requirement for a registered business location. It is a real Helsinki address (not a PO box) and is accepted by Verohallinto and PRH for all official correspondence.
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Mail scanning and forwarding. All official correspondence received at the address is scanned and forwarded to you digitally. You stay informed about any communications from Finnish authorities regardless of where you are located.
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Privacy for company founders and directors. Using a virtual office address keeps your personal home address off the public Trade Register. Anyone searching for your company in the Finnish Business Information System (YTJ) sees the virtual office address, not your home address.
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Professional credibility. A Helsinki business address signals that your company has a legitimate Finnish presence, which matters when dealing with Finnish clients, banks, and business partners.
Virtual office in Helsinki from 1Office Finland
1Office Finland provides a virtual office address at Unioninkatu 22, Helsinki, the centre of Helsinki's business district. The address is accepted by the Finnish Trade Register and all Finnish authorities. It is included in all 1Office Finland formation packages and is available as a standalone service for companies already registered. View the virtual office service.
Without a Finnish business address, your company cannot be registered in the Finnish Trade Register. If your current address registration has lapsed or your previous provider has ceased operations, 1Office Finland can replace it immediately. A lapsed address registration can trigger a PRH warning and ultimately affect your company's standing in the Trade Register.
Starting a Company
Accounting setup when you start a company in Finland
Getting the accounting setup right at the point of company registration is significantly easier than correcting it later. When you register a Finnish Oy, whether through 1Office directly or through PRH's own Suomi.fi portal, the accounting obligations begin immediately. Here is what needs to be in place from day one.
Y-tunnus and tax registrations
When your Finnish Oy is registered, it receives a Y-tunnus (business identity code), which is Finland's equivalent of a company registration number. This number is used for all dealings with Finnish authorities. Alongside company registration, you should also arrange prepayment tax registration (ennakkoperintärekisteri), employer registration if you plan to pay salaries, and VAT registration if your turnover will exceed €15,000. 1Office Finland handles all of these tax registrations as part of the company formation process.
Opening a Finnish business bank account
Finnish accounting requires a clearly separate business bank account. Personal and business finances must not be mixed. Most Finnish banks (Nordea, OP, Danske Bank) require in-person or video verification for new business accounts, which can take three to six weeks for foreign-owned companies. Wise Business and Holvi are faster alternatives used by many international Finnish company owners. 1Office Finland can advise on the most practical banking route for your situation.
Choosing your accounting method
Finnish bookkeeping can be maintained on a cash basis (maksuperuste) or an accruals basis (suoriteperuste). Cash basis accounting is simpler and is available to small companies below certain thresholds. Accruals basis is required for larger companies and for VAT purposes. Most Finnish accounting software handles both methods. 1Office Finland uses cloud-based accounting tools that give you real-time visibility into your company's financial position, accessible in English.
1Office handles Y-tunnus registration, tax registrations, virtual office, and first-year accounting setup in one package.
Subsidiary in Finland
Accounting for a subsidiary in Finland
Many international companies establish a Finnish subsidiary (tytäryhtiö) as their vehicle for operating in Finland, rather than using a branch or providing services directly from abroad. A Finnish subsidiary is a separate legal entity, an Oy owned by the foreign parent, and it has the full accounting obligations of any other Finnish limited company.
From an accounting perspective, a Finnish subsidiary must maintain its own Finnish bookkeeping, file its own corporate income tax return, and prepare its own tilinpäätös. It cannot simply be included in the parent company's consolidated accounts without also meeting its own Finnish filing obligations. For parent companies in countries with different financial year-end dates, aligning the Finnish subsidiary's accounting period with the group's period is possible and often advisable.
Intercompany transactions and transfer pricing
When a Finnish subsidiary transacts with its foreign parent, receiving management fees, paying royalties, borrowing funds, or buying services, Finnish transfer pricing rules apply. Transactions between related parties must be conducted at arm's length, meaning on terms that would apply between unrelated parties. Verohallinto requires companies with significant intercompany transactions to maintain transfer pricing documentation. 1Office Finland advises on transfer pricing documentation requirements for Finnish subsidiaries as part of the accounting service for larger clients.
Dividend payments from a Finnish subsidiary to a foreign parent
Dividends paid by a Finnish Oy to a foreign parent company are subject to Finnish withholding tax at the standard rate of 20%. This rate is reduced or eliminated under EU directives and applicable tax treaties. EU parent companies holding at least 10% of the Finnish subsidiary's share capital typically qualify for 0% withholding tax under the EU Parent-Subsidiary Directive. The correct treatment depends on the parent company's jurisdiction and ownership structure. 1Office Finland can advise on withholding tax obligations before dividends are distributed.
1Office Finland handles subsidiary formation, tax registrations, and all ongoing accounting and compliance obligations.
Key Deadlines
Finnish company accounting and declaration deadlines for 2026
| Obligation | Deadline | Filed with |
|---|---|---|
| Annual report (tilinpäätös), preparation | 4 months after financial year end (30 April for Dec year-end) | PRH |
| Corporate income tax return (veroilmoitus) | 4 months after financial year end (30 April; May extension possible) | Verohallinto via OmaVero |
| Monthly VAT return | 12th of the second month after the reporting period | Verohallinto via OmaVero |
| Quarterly VAT return | 12th of the second month after the reporting quarter | Verohallinto via OmaVero |
| Annual VAT return | 28 February of the following year | Verohallinto via OmaVero |
| Payroll declaration (incomes register) | Within 5 calendar days of each salary payment | Tulorekisteri (Incomes Register) |
| Employer contributions (TyEL, unemployment) | Monthly; typically due by the 20th of the following month | Pension insurance company and Verohallinto |
| Annual general meeting (AGM) | Within 6 months of financial year end (by 30 June for Dec year-end) | Internal company requirement |
FAQ
Frequently asked questions about accounting in Finland
Is accounting in Finland required for dormant companies?
Yes. Every Finnish Oy must maintain bookkeeping and file an annual declaration (tilinpäätös and veroilmoitus) each year, regardless of whether the company had any business activity. A dormant company with zero revenue and zero transactions still has annual filing obligations. The tilinpäätös for a dormant company is simpler and less expensive to prepare, but it cannot be skipped. Failure to file results in PRH penalties and, eventually, deletion of the company from the Trade Register.
What is the annual declaration deadline for a Finnish company?
The annual declaration, meaning both the tilinpäätös filed with PRH and the corporate income tax return filed with Verohallinto, is due within four months of the end of the financial year. For companies using the calendar year (ending 31 December), the deadline is 30 April. Companies using authorised tax advisors like 1Office Finland may benefit from an automatic extension to the end of May for the tax return only.
What VAT rate applies in Finland in 2026?
Finland's standard VAT rate is 25.5%, raised from 24% on 1 September 2024. Reduced rates of 13.5% apply to food, restaurant services, and hotel accommodation. A 10% reduced rate applies to books, medicines, passenger transport, and physical exercise services. Certain exports and intra-EU B2B sales are zero-rated.
Does my Finnish company need a virtual office address?
Every Finnish company must have a registered business address in Finland listed in the Finnish Trade Register. If you do not have a physical office in Finland, a virtual office address is the standard solution. 1Office Finland provides a virtual office address in central Helsinki, included in all formation packages and available as a standalone service. Without a valid Finnish address, the company cannot maintain its Trade Register status.
Can accounting in Finland be done in English?
Finnish bookkeeping records must be maintained in Finnish, Swedish, or English, and all amounts must be in euros. The underlying records can therefore be kept in English. However, the tilinpäätös filed with PRH is typically prepared in Finnish, as PRH requires Finnish-language documents. 1Office Finland prepares all statutory Finnish-language documents and provides English summaries and management reports so international founders understand their company's financial position.
What does 1Office Finland's accounting service include?
1Office Finland's accounting service covers monthly bookkeeping, VAT return preparation and filing, payroll processing and incomes register declarations, annual report (tilinpäätös) preparation and PRH filing, corporate income tax return preparation and Verohallinto filing, and management reporting in English. All services are delivered remotely through the my1Office platform. Companies whose bookkeeping is elsewhere can also order the annual report service as a standalone product.
How does accounting work for a Finnish subsidiary of a foreign company?
A Finnish subsidiary is a separate legal entity with its own full set of Finnish accounting obligations. It must maintain Finnish bookkeeping, file its own tilinpäätös with PRH, and submit its own corporate income tax return to Verohallinto. Intercompany transactions with the parent must comply with Finnish transfer pricing rules. Dividend payments to a non-Finnish parent are subject to Finnish withholding tax, which may be reduced or eliminated under EU directives or tax treaties. 1Office Finland handles subsidiary accounting and compliance for international parent companies.
What is the corporate income tax rate in Finland in 2026?
The Finnish corporate income tax rate is 20% for 2026. The Finnish government has confirmed a reduction to 18% effective from financial years beginning on or after 1 January 2027. For companies with a standard calendar year, the 18% rate will first apply to the 2027 accounts filed in 2028. All 2025 accounts filed now and 2026 accounts filed in 2027 are taxed at 20%.
Professional accounting for your Finnish company
Monthly bookkeeping, VAT, payroll, annual report and tax return, all in English, fully remote. New clients and standalone annual report orders both welcome.
