Finland – Muhasebe News

Number of employed persons in Finland slightly higher in February 2023 than one year earlier

MuhasebeNews — Tue, 21 Mar 2023 07:09:53 +0000

According to Statistics Finland’s Labour Force Survey, the number of employed people aged 15 to 74 was 12,000 higher in February 2023 than one year ago. The number of the unemployed was 2,000 higher in February than one year previously. The trend of the employment rate among persons aged 20 to 64 was 78.5 per cent. The trend of the unemployment rate among persons aged 15 to 74 was 6.8 per cent.

Key points

In February 2023, the number of employed persons was 2,582,000 and that of unemployed persons 186,000.
There were 8,000 less employed men and 20,000 more employed women than a year ago.
The trend of the employment rate among persons aged 20 to 64 was 78.5 per cent in February.
The trend of the employment rate among persons aged 15 to 64 was 74.2 per cent in February.
The trend of the unemployment rate among persons aged 15 to 74 was 6.8 per cent in February.

Number of employed persons grew a little from the year before

In February 2023, the number of employed aged 15 to 74 was 2,582,000 (margin of error ±35,000), which was 12,000 higher than a year earlier. There were 8,000 less employed men and 20,000 more employed women than in February 2022.

In February, the employment rate for those aged 20 to 64, that is, the proportion of the employed among persons aged 20 to 64, stood at 77,7 per cent, having been the same in this age group one year earlier. From last year’s February, the employment rate of men aged 20 to 64 fell by 0.2 percentage points to 77.3 per cent and that of women rose by 0.2 percentage points to 78.1 per cent.

The employment rate of people aged 20 to 69 was 71.5 per cent, having been 71.6 per cent one year before.

Number of unemployed persons almost the same as a year ago

According to Statistics Finland’s Labour Force Survey, there were 186,000 unemployed (margin of error ±23,000) aged 15 to 74 in February 2023, which was 2,000 more than one year earlier. The number of unemployed men was 112,000 and that of women 74,000.

In February, the unemployment rate for persons aged 15 to 74, that is, the proportion of the unemployed among the labour force stood at 6.7 per cent, having been the same one year earlier. The unemployment rate for men was 7.9 per cent, which was 0.5 percentage points higher than one year before. The unemployment rate of women was 5.5 per cent, having been 5.9 per cent in the year before.

In February, the unemployment rate for people aged 15 to 24 stood at 13.2 per cent, which was 1.3 percentage points lower than one year previously. The trend of the unemployment rate among young people was 14.1 per cent. The share of unemployed young people aged 15 to 24 among the population in the same age group was 6.1 per cent.

Key indicators of the Labour Force Survey in February 2022 and 2023

	2022/02, %	2023/02, %	Change, 2022/02 – 2023/02, percentage points
Employment rate, persons aged 20-64	77,7	77,7	0,0
Unemployment rate, persons aged 15-74	6,7	6,7	0,0
Activity rate, persons aged 15-74	66,8	67,1	0,3

Number of people in the inactive population decreased

There were 1,357,000 persons aged 15 to 74 in the inactive population in February 2023, which was 9,000 fewer than one year earlier.

Population aged 15 to 74 by labour force status in February 2022 and 2023

	2022/02, 1000 persons	2023/02, 1000 persons	Change, 2022/02 – 2023/02, 1000 persons	Change, 2022/02 – 2023/02, %
Population total	4 121	4 125	4	0,1
Active population total	2 755	2 768	13	0,5
– employed	2 570	2 582	12	0,5
– unemployed	185	186	2	0,9
Inactive population	1 367	1 357	-9	-0,7

Seasonally adjusted trend

Employment and unemployment vary quite much by month and the change from the observation of the previous month mainly describes the seasonal aspect rather than the trend in development. Thus, the latest statistical data are compared to the corresponding period of the year before. By contrast, the figures of the trend series that are adjusted for seasonal and random variation are mutually comparable and phenomena associated with long-term development and cyclical changes are thus more easily observable from the trend of the time series.

The trend usually changes somewhat when the data of the following month are included in the time series. Therefore, only the last published time series should be used when using the trend figures. The preliminary nature of the latest trend figures should be considered when making conclusions. The fall in employment in spring 2020 was interpreted as a level shift in the seasonal adjustment model. The figures reported in this release are not adjusted for seasonal variation unless separately mentioned that they concern the trend.

Source: Statistics Finland
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Consumer confidence in Finland is still low; compared to one year ago, the views were still clearly worse

MuhasebeNews — Wed, 01 Mar 2023 06:15:08 +0000

Views on the economy improved slightly in February compared to January. Compared to one year ago, the views were still clearly worse.
Consumers’ assessments of their own economy at present and expectations concerning one’s own and especially Finland’s economy in 12 months’ time still remained at a very weak level.
Plans to spend money on durable goods remained almost unchanged and very scant. The time was considered very unfavourable for making purchases. Intentions to buy a car and dwelling were lower than usual.
Estimates concerning inflation at the time of the survey rose again to its record level. Expectations concerning inflation in 12 months’ time remained almost unchanged at a lower level.
Consumers’ own financial situation was again considered to be good and the threat of unemployment to be normal.

Consumer confidence in areas of residence and population groups

In February, consumer confidence in the economy was exceptionally strongest in Eastern Finland (CCI -3.1). Confidence was weakest in Northern Finland (-17.8). Among population groups, upper-level salaried employees were most optimistic (-4.7). Unemployed persons had the gloomiest expectations concerning economic development (-17.9) in February. More detailed information is available in the figures and database tables.

Consumers’ own and Finland’s economy

In February, consumers’ views on the economy improved slightly compared to January. Despite this, the assessment of the present situation and expectations concerning one’s own economy and especially Finland’s economy were still very weak. Compared to one year ago in February, the views on the economy were now clearly worse.

Thirty-three per cent of consumers thought in February that their own economy is weaker than one year ago. Only 22 per cent of consumers regarded their own economy stronger at the time of the survey than one year ago. As many as 80 per cent of consumers thought that Finland’s economy is now worse than a year ago, and only five per cent felt that it is better.

In February, 19 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months. Nearly one half, or 45 per cent of consumers, thought that the country’s economy would deteriorate. In all, 26 per cent of consumers believed in February that their own economy would improve and 19 per cent feared it would worsen over the year.

Unemployment and its threat

Consumers’ expectations concerning the development of the general unemployment situation in Finland remained on the long-term average level in February. Only 15 per cent of consumers expected that unemployment would decrease over the next year, while 39 per cent thought that unemployment would increase.

In February, employed consumers (wage and salary earners and self-employed persons) felt that the personal threat of unemployment or temporary lay-off was similar to the long-term average. Six per cent of employed persons reckoned that their personal threat of unemployment had lessened over the past few months, while 15 per cent thought the risk had grown. Exactly one half, or 50 per cent, of employed persons felt in February that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In February, consumers’ estimates concerning inflation at the time of the survey rose again to its record level. Expectations concerning price changes in 12 months’ time remained almost unchanged at a lower level.

In February, consumers estimated that consumer prices have risen by 8.6 per cent from last year’s February and will go up by 5.2 per cent over the next year. As many as 92 per cent of consumers thought prices had risen much or fairly much over the year, but only 36 per cent expected prices to rise at least at the same rate over the coming months as well.

Financial situation, saving and raising a loan

As in the past months, the time was considered very poor for raising a loan and also for saving in February. Only 10 per cent of consumers regarded the time good for raising a loan and 36 per cent thought the time was favourable for saving. At the same time, intentions to take out a loan were on a very low level. In February, only 13 per cent of consumers were planning to take out a loan within one year.

In February, consumers again considered their own financial situation to be good. Consumers expected their saving possibilities to be on their usual level in the coming months. In February, 58 per cent of consumers had been able to lay aside some money and 74 per cent believed they would be able to do so during the next 12 months.

Spending and intentions to make large purchases

In February, the time was still considered very unfavourable for buying durable goods. Only nine per cent of consumers considered the time favourable for expensive purchases.

In February, consumers still had very scant intentions to spend money on durable goods during the next 12 months. Intentions to purchase subsided particularly compared to one year ago. In February, only eight per cent of consumers planned on increasing and nearly one half, or 47 per cent, on reducing their spending on durable goods over the next 12 months.

Buying a car during the next 12 months was in February considered to a lesser extent than normal in the long-term. The same applied to buying a dwelling and also to renovating one’s home.

In February, 13 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Only 11 per cent of consumers considered buying a dwelling or building a house. Fifteen per cent of consumers were planning to spend money on renovating their home during the next 12 months.

Finnish Government Reaches 2019 Budget Agreement

MuhasebeNews — Thu, 13 Sep 2018 07:28:45 +0000

Finnish Government Reaches 2019 Budget Agreement

A number of incentives have been included in the Finnish Government’s 2019 Budget to encourage investment in the shares of both small and listed companies.

The Budget, agreed by the Government on August 29, directs the Finnish tax administration to draw up guidelines later this year to enable employees to obtain shares in their employer at a lower price than a private investor “without tax consequences.”

It is also proposed that rules be drawn up easing the tax rules surrounding the ownership of stock options by employees of unlisted start-up companies. The aim is that any gains made from holding options will, in general, be taxed as capital income, and the tax paid only when such gains are realized.

The Budget also included plans to introduce a new tax-privileged equity savings account for retail investors, allowing them to invest in listed shares up to a maximum amount of EUR50,000 (USD58,400).

In other measures, the Budget restricts the the deductibility of interest paid on mortgages to 25 percent of the interest.

While the personal income tax burden will remain largely unchanged next year, the Government will ease tax on low income earners by increasing the tax-free allowance, the earned income deduction, and the pension income allowance.

Source: Tax News
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

How to Get Refund of VAT Paid in Turkey?

MuhasebeNews — Thu, 16 Aug 2018 18:00:19 +0000

I have a refund regarding transportation activities:
– If your domicile, workplace, legal center and work center is not located in Turkey,
– If you are a resident of a country providing reciprocity between Turkey on VAT refund, ( Bosnia- Herzegovina, Bulgaria, Denmark, Finland, France, Netherlands, Ireland, Switzerland, Italy, Malta, Norway, Portugal, Romania, Serbia, Slovakia, Slovenia) ( VAT Law – Circular numbered 60)
– If the delivery of goods and services regarding the transportation activity are fuel, spare part, maintenance and repair,
– If the cost of the purchased goods/services, including VAT, is over the limit of invoicing within the related period. (900 TL for 2016 and 2017)
– You can get your VAT refund by applying to the İstanbul Tax Office Directorate Boğaziçi Corporate Tax Office Directorate or Marmara Corporate Tax Office Directorate with a petition.

I have a refund regarding participation to exposition, exhibition and fair:
– If your domicile, workplace, legal center or work center is not located in Turkey,
– If you are a resident of a country providing reciprocity between Turkey on VAT refund, ( Bosnia- Herzegovina, Bulgaria, Denmark, Finland, France, Netherlands, Ireland, Switzerland, Italy, Malta, Norway, Portugal, Romania, Serbia, Slovakia, Slovenia) ( VAT Law – Circular numbered 60)
– If the delivery of goods and the execution of services regarding the participation to exposition, exhibition and fair are exclusively related to these jobs (accommodation included),
– If the cost of the purchased goods/services, including VAT, is over the limit of invoicing within the related period. (900 TL for 2016 and 2017)
– You can get your VAT refund by applying to the tax office determined by the Tax Office Directorate/ Defterdarlık at the province where the exposition, exhibition and fair activities are executed with a petition.

I have a refund resulting from the touristic shopping:

You cannot get VAT refund in case you bought a touristic service.
– If you are a foreign national individual not residing in Turkey,

You can get refund of VAT providing that you get the goods out of Turkey within 3 months beginning from the date of the invoice or similar documents and if:

each invoice for the goods you purchased is over 100 TL (VAT exclusive),

the goods you purchased are not among the goods listed in Special Compsumtion Tax Law Annex I,

the seller from whom you purchase goods is a taxpayer who has the License of VAT Export Exception or is eligible to prepare the special invoicing.

The special invoice which is prepared by the seller for the sales under exception needs to involve the following information;
– Type and number of your passport,
– The branch of your bank and your account number in that bank.

The seller has to prepare the invoice as 4 copies and submit 3 of them to you.

If you want to get your refund from the bank branch at customs;

The salesperson should give you a cheque belong to a bank he has contract; indicating the date and number of the invoice and the total amount of VAT as TRY (Turkish Lira)

You may get your VAT refund from the bank branch at the customs after you get the cheque and the invoice approved by the customs officer.

If you want your refund to be paid to your bank account;

In case you sent your invoice; which is approved as you carry the goods with you, within 3 months following the date of your departure; your refund might be deposited to your bank account or might be sent to your address within 10 days after the salesperson receives the invoice indicates your refund amount.

If you want your refund to be paid in cash;

The salesperson may pay your refund in cash in case you bring the approved copy of your invoice to the salesperson within 3 months following the date of your departure.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Investment Legislation

MuhasebeNews — Mon, 13 Mar 2017 13:39:08 +0000

Turkey’s investment legislation is simple and complies with international standards, while it offers equal treatment for all investors. The backbone of the investment legislation is made up of the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investments Law No. 4875, the Regulation on the Implementation of the Foreign Direct Investment Law, multilateral and bilateral investment treaties and various laws and related sub-regulations on the promotion of sectorial investments.

Legal Framework of Foreign Direct Investment
1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

to encourage FDI in the country
to protect the rights of investors
to align the definitions of an investor and investment with international standards
to establish a notification-based system rather than an approval-based one for FDI
to increase the volume of FDI through streamlined policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as;

freedom to invest,
national treatment,
expropriation and nationalization,
freedom of transfer,
national and international arbitration and alternative dispute settlement methods,
valuation of non-cash capital,
employment of foreign personnel,
liaison offices.

The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

to regulate the work carried out by foreigners
to stipulate the provisions and rules on work permits given to foreigners
2. Bilateral Agreements
2.a. Bilateral Agreements for the Promotion and Protection of Investments
Bilateral Agreements for the Promotion and Protection of Investments were signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. The basic aim of bilateral investment agreements is to establish a favorable environment for economic cooperation between the contracting parties by defining standards of treatment for investors and their investments within the boundaries of the countries concerned. The aim of these agreements is to increase the flow of capital between the contracting parties, while ensuring a stable investment environment. In addition, by having provisions on international arbitration, they aim to prescribe ways to successfully settle disputes that might occur among investors and the host state. Turkey has signed Bilateral Investment Treaties with 94 countries. However, Turkey is a dualist country, where an international treaty has to be ratified and promulgated in order to become part of the national legal system. Within this regard, 75 Bilateral Investment Treaties out of these 94 have gone into effect so far.

75 countries
Afghanistan, Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium-Luxembourg, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Ministry of Economy

2. b. Double Taxation Prevention Treaties
Turkey has signed Double Taxation Prevention Treaties with 80 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

80 countries
Albania, Algeria, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Revenue Administration

Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis.

2. c. Social Security Agreements
Turkey has signed Social Security Agreements with 26 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI.

26 countries
Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Croatia, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Netherlands, Norway, Romania, Slovakia, Serbia, South Korea, Sweden, Switzerland, Turkish Republic of Northern Cyprus, United Kingdom
Source: Social Security Institution (SSI)

3. Customs Union and Free Trade Agreements (FTA)
A Customs Union Agreement between Turkey and the European Union has been in effect since 1996. The agreement allows trade between Turkey and the EU countries without any customs restrictions. The EU-Turkey Customs Union is one of the steps toward full Turkish membership of the EU itself.

Turkey has FTAs with 37 countries, creating a free trade area in which the countries agree to eliminate tariffs, quotas and preferences on most goods and services traded between them. This framework explains why many global companies are now using Turkey as a second supply source and manufacturing base, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively low-cost but well-educated labor force, coupled with cost-effective transportation.

37 countries
Albania, Bosnia and Herzegovina, Egypt, Georgia, EFTA, Israel, South Korea, Macedonia, Morocco, Malaysia, Mauritius, Palestine, Jordan, Syria*, Tunisia, Montenegro, Serbia, Chile
Countries that have finalized the negotiation process: Faroe Islands, Ghana, Kosovo, Lebanon, Moldova, Singapore
Countries in the negotiation process: Democratic Republic of the Congo, Cameroon, Colombia, Ecuador, Gulf Cooperation Council, Japan, Libya, Mexico, Mercosur, Peru, Seychelles, Ukraine *suspended
Source: Ministry of Economy

Date: 13 March 2017