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The Finnish welfare society is maintained by tax revenues. Health care, education and other necessary services, and transfer of income are all financed out of tax revenues.

All of those who work pay tax on their earnings to the local authority and the government. Municipal income tax percentages are determined by Finnish municipal authorities. Government taxation is progressive: people with a high income pay more tax than those with a low income. Tax is also paid on capital gains. Members of the Evangelical-Lutheran Church and the Orthodox Church pay church tax to their parishes.

Consumers pay value added tax (VAT) on products and services they purchase, and companies remit the tax to the state. The VAT percentage varies according to the product or service in question.

Finns living abroad only pay tax once. There are mutual tax agreements between states that determine the country in which tax will be paid.

The Ministry of Finance takes care of the preparation of tax legislation and the development of the Tax Administration in Finland. The Tax Administration carries out taxation in practice. Tax offices are responsible for customer service, tax collection and bookkeeping.

Finnish Customs and the Finnish Transport Safety Agency Trafi handle taxes that come within their own legislation.

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