University Pharmacy: The pharmacy tax and the corporate income tax

The University Pharmacy pays the pharmacy tax and the corporate income tax to the Finnish Government just like all other pharmacies in the country.

The pharmacy tax is determined by the turnover and parameters for its amount are set in the law on the pharmacy tax. On average, the pharmacy tax paid by Finnish pharmacies is approximately seven per cent. The University Pharmacy pays a pharmacy tax which is 11.2% of its turnover. The purpose of the pharmacy tax is to ensure nation-wide pharmacy services and to help even out income differences between pharmacies. More information on the pharmacy tax is available on the Fimea website.

The corporate income tax is a tax on the business income of companies and communities in Finland. Since 2014, the tax rate has been 20%.

Until 2016, the University of Helsinki received a governmental subsidy equal to the amount of the corporate income tax and pharmacy fee (nowadays pharmacy tax). In addition to the University of Helsinki, the University of Eastern Finland received a similar subsidy for its pharmacy. Annually this subsidy has amounted to approximately €31 million in total (pharmacy fee and corporate income tax). It was used to fund the University’s teaching and research.

Voluntary subsidy to universities

The University of Helsinki has voluntarily paid an annual subsidy according to the number of prescriptions to the Finnish universities which have University Pharmacy locations in their area. As of 2016, this subsidy was revoked.