How to pay salary as a sole proprietor?

Can a sole proprietor (toiminimi) pay itself salary in Finland? Get the core idea right from the start.

TAXATION

4/29/20251 min read

There's often confusion about sole proprietors 'paying' themselves salary.

As a toiminimi owner:

business income = your personal income. It's all yours but save enough to pay the taxes!
You don’t pay yourself a salary — you withdraw money freely. Such are called personal withdrawals.
Make sure you have enough left to pay possible VAT and/or prepayments.
Pay advance tax based on expected profit.
Track withdrawals properly for bookkeeping.

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