Tax allowance for companies - Deduction in company income tax for employee training expenses

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Name of the instrument - Local language
Koulutusvähennys
Name of the instrument - English translation
Tax allowance for companies - Deduction in company income tax for employee training expenses
Scheme ID
219
Country
Finland
Reporting year
2020
Type of instrument
Tax incentive for companies
Sub-type of instrument
Incentive for promoting training
Type of entry
Single instrument
Short description

The employer may deduct the training costs arising from training based on a specific training plan developed. It is a prerequisite for tax reduction that the employer has developed a training plan for employees. The amount of the training deduction is calculated by multiplying the average daily wage of the company's employees by the number of training days entitled to the training deduction, and dividing the income thus obtained by 2. The scheme can be re-used once in each calendar year.

Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Key instrument
Laki Verohallinnosta ('Tax Administration Act')
Objective(s) and target(s)
To promote the development of employees' competences by making it more attractive for employers to undertake training activities for their employees.
Year of implementation
2010
Operation/management
Tax authorities
Eligible group(s)
Companies - it is a prerequisite for tax reduction that the employer has developed a training plan for employees
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
Internal training exceeding 6 hours (one day), as foreseen in the training plan
Source of financing and collection mechanism
State (loss of tax revenue)
Financing formula and allocation mechanisms
Right for an additional tax deduction of up the half of the average wage costs per day of training up to the maximum of three training days per employee, reduction of tax base.
Eligible costs
Contribution to the wage costs during training (deduction of half of the average costs per employee, for up to three days of training per employee)
Volumes of funding
Not available
Beneficiaries/take up
Not available
Organisation responsible for monitoring/evaluation
Tax authorities
Monitoring/evaluation reports available
Not available
Most relevant webpage - in English
Not available
Most relevant webpage - local language
http://www.vero.fi/sv-FI/Detaljerade_skatteanvisningar/Skatteforvaltnin…
Recent changes

No recent amendment

Recent changes in response to COVID-19

No changes

Sources
http://www.vero.fi/sv-FI/Detaljerade_skatteanvisningar/Skatteforvaltnin…
http://www.edupoli.fi/koulutusvahennys
https://www.finlex.fi/sv/laki/ajantasa/2010/20100503
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