To qualify for a business grant, you must prove to the tax authorities that you have invested the minimum amount of capital required in your business. This depends on the type of business.
Finnish business grants are approved depending on the business type and size of the applicant.
The minimum amount of capital needed is around one million ISK. It can be done on a sole proprietorship, a limited liability company, a limited liability company for private individuals, or other types of businesses.
There is a maximum amount that you can invest. According to the IRS, the maximum amount you can invest in total in a tax year that includes the dates of the year and one before your business is established is 7,500,000 ISK for small businesses ($2,000 per employee). It can be higher if you have investments in assets that will be more difficult to track.
For larger businesses there are no minimums, but you must submit a plan to your tax authority that will justify the size of your investment in the company. It should explain how you will use the money you receive in the following year.
How to apply for an Finnish business grant?
In order to apply for another type of business grant, you should send an application to the local taxation authority. The application needs to include the following:
a statement of your business plan, which may explain what your business plan will be like, how you intend to generate income, and how you plan on managing risk in your business
a statement of your income, expenses, and capital requirements
a set of tax documents
a set of budget (for example, annual budget and operating plan)
in the case of an enterprise, a copy of the enterprise agreement and a contract between you and the enterprise on their management of the enterprise
a statement of assets, liabilities, and reserves
A Finnish business grant should always be sent as a bank draft in a sealed envelope so it can be accepted when it arrives with the payment of tax. There is no need to include your personal signature or any other form of identification. If you pay tax on the business grant it will be considered as income and will be added to your personal income.
Tax exemptions for business grants
In Finland a business grant is not a tax exemption. All profits from the business are considered taxable and the business grant is included in the taxable income of the taxpayer.
So, if you make profits from your business, they