Tax contribution

Terrafame’s commitment to accountability also extends to tax matters. Terrafame has an
important social duty and a regional role to play, especially in the Kainuu region. The company has production operations only in Finland and does not, therefore, pay taxes in other countries.

Tax footprint reporting is based on the guidance on tax reporting issued by the Ownership Steering Department of the Prime Minister’s Office on 1 October 2014. Mandatory insurance contributions included in salary costs are excluded from reporting. These insurance contributions are directly related to salaries and are treated as direct salary costs because of the nature of the insurance policies. In addition, the company does not report minor VAT amounts included in foreign travel and training expenses.

Terrafame has yet to generate any taxable income. However, the company has incurred significant tax expenses because of the energy and fuel taxes related to its operations. In addition, the company has paid normal taxes related to the acquisition and ownership of property.

The company's tax reporting is a part of its annual financial review, which also includes a report of the Board of Directors, Financial Statements, Corporate Governance Statement, and a Remuneration Statement. You can read more at the Reports and publications > Financial Reviews.

Tax categories of Terrafame Ltd in 2024 and 2023