More and more light entrepreneurs want to know, how taxation will work in 2025.
Is it complicated? Do I have to file a tax return myself? And how are taxes deducted from my salary?

The good news: the taxation of the light entrepreneur is much easier than a partnership or limited company.
This guide explains everything clearly - without the clutter.

💼 How does the taxation of the light entrepreneur work?

Light entrepreneur NOT self-employed for tax purposes, if he or she uses the billing service.
This means:

✔ you do not need a Y-identification
✔ you do not make VAT returns yourself
✔ you do not keep records
✔ you do not pay advance taxes like a sole trader

In the eyes of the tax administration, you are employee, even if you are entrepreneurial.

All taxes are handled automatically by the billing service.

🧾 What taxes will a light entrepreneur have to pay?

Kevyesti.fi pays your wages in accordance with withholding tax, in which case your salary is subject to the same taxes as an ordinary salary.

These are done automatically:

✔ Withholding tax

According to your tax rate (upload your tax card to the service).

✔Employment pension contribution (TyEL)

Mandatory just like an employee.

✔ Accident insurance

Included in the service fee or included in the service (included in Kevyesti.fi).

✔ Sotu payments

Managed through the billing service.

You don't have to pay for any of these yourself.

⚠️ Does a light entrepreneur have to pay YEL insurance?

Yes - if you meet the following conditions:

• you are regularly engaged in light entrepreneurship AND
• your estimated earned income exceeds the YEL minimum (approx. 9 010 € / year in 2025)

So YEL does not apply:

✔ random factors
✔ students
✔ Secondary employees
✔Shift workers with less than 9k/year income

📌 What about VAT? Does a light entrepreneur have to worry about it?

Most commonly EI, because:

• the invoicing service takes care of VAT
• VAT included in the service fee
• you do not need to submit VAT returns

VAT becomes important ONLY if:

✔ you do B2B work (corporate clients)
✔ service requires specification of VAT

But even then, the billing service will handle the notifications.

💰 How much of your salary is taxed?

Here is a simple example:

👉 Invoicing: 1 000 €
👉 Tax rate: 20 %

Reduction:

• withholding tax
• TyEL
• accident insurance
• service fee

Net pay to account: around 650-720 €

The exact amount depends on the tax card, the cost structure and the service charge.

⚡ Kevyesti.fi advance salary and tax treatment

If you raise advance, it is taxed in the same way as a normal salary:

✔ taxes automatically
✔ expenses deducted
✔ same day payment to your account

This is useful if:

• customers are slow to pay
• you need money fast
• you have an irregular income stream

🎯 What do I need to do for my own tax?

The light entrepreneur is only responsible for:

1️⃣ Check your tax card on your own tax.fi website

2️⃣ Provide information to the billing service

3️⃣ Declare any deductions you may have made (e.g. for work equipment) in your tax return

But:

❗ Your you don't need keep records
❗ Your you don't need issue VAT returns
❗ Your you don't need manage employer obligations

The tax issues of a light entrepreneur are the lightest of all forms of entrepreneurship in Finland.

📊 Taxation of a light entrepreneur vs. taxation of a sole proprietor

Light business wins 100-0 on ease of doing business.

🇫🇮 Why choose Kevyesti.fi?

Kevyesti.fi makes tax clear for the light entrepreneur:

✔ All payments automatically
✔ Fast payment of wages
✔ Possibility of advance payment
✔ Domestic Key Flag service
✔ No accounting
✔ No Y-identification

👉 Read more: https://www.kevyesti.fi

Further information and sources from the authorities:
🔗 Tax Administration
🔗 Suomi.fi
🔗 YTJ