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Finnwatch calls out private healthcare firms' tax planning

The NGO's review included Mehiläinen, Terveystalo, Attendo, Pihlajalinna, Coronaria and Esperi Care.

A stethoscope on a desk where a doctor is typing on a computer.
Image: Eeva Kuivas / Yle
  • Yle News

Finnish healthcare firms dodge taxes using a variety of methods, according to a report by Finnwatch, a group focusing on corporate social responsibility.

A common tactic for them is to purchase medical services through doctors' own companies, converting wages into more lightly taxed dividends.

The NGO's review included Mehiläinen, Terveystalo, Attendo, Pihlajalinna, Coronaria and Esperi Care.

While private Finnish healthcare companies have steered clear of aggressive international tax planning, they do reduce their tax bills by using employee funds and converting earned income into dividend payouts. Twenty percent of any withdrawal from an employee fund is tax-free.

According to Tero Määttä at the Finnish Tax Administration, this reduces tax revenue, but even so, the companies are complying with the law.

Finnwatch noted these firms often purchase physicians' services through the doctors' own limited companies, thereby reducing personal taxation

Määttä noted that such arrangements are nothing new.

According to Finnwatch, highly paid doctors can sharply reduce their tax rate by invoicing their work through a limited company.

The tax office did not comment on any moral dimension or on whether the actions of the healthcare giants are fair from the perspective of lower-paid healthcare staff.

Yle News' All Points North podcast asked if private health insurance has become necessary in Finland today.

Do you need private health insurance in Finland?