Sustainable economic growth

Terveystalo’s success benefits the society

We produce services in Finland not only in the form of occupational health services for employers but also in the form of purchased services for the public sector and directly to private customers. Well-functioning occupational health care keeps the economy going. By providing public services, we save the taxpayers’ money because we can offer high-quality health services cost efficiently. By choosing private sector services, the customer also reduces queues in the public sector, both in dental care and other health care services. In Sweden we mainly produce diverse preventive occupational health services, helping Swedish companies and their employees achieve a higher level of well-being.

We create economic added value not only for our customers but also for other key stakeholders, such as our personnel, private practitioners, our material and service suppliers, and society. Our most significant cash flows consist of revenue from service sales, purchases from suppliers of goods and services, salaries paid to our personnel, fees paid to private practitioners, taxes, investments, and dividends paid to the shareholders.

Terveystalo pays its taxes to the countries it operates in

In accordance with Terveystalo’s public tax strategy, we pay, collect, account and report our indirect and direct taxes in full at the right time and place, i.e. where the economic activity, addition of value and work generating the profit actually take place. This means that, as a Group, we pay almost all of our taxes to Finland, which is where most of our operations take place. Regarding business activities of Feelgood, Rela-hierojat and Evalua sales company, taxes are also paid in Sweden, Estonia, and the Netherlands. The local business activities of our subsidiaries in Estonia and the Netherlands have been minor during the financial year 2022.Our responsible tax policy ensures that our financial profit is divided fairly between our key stakeholders, i.e. customers, shareholders, municipalities and the state. Tax revenue is used in turn to finance public services and investments that support the national government’s capabilities, sustainability and responsiveness.

We publish our tax footprint annually, describing the total sum and division of taxes and tax-like charges paid to the society. Our direct taxes include corporate income tax, transfer tax, and real estate tax, and our indirect taxes include, for example, value added tax. In accordance with the Tax Accounting Act, a share of the corporate income tax we pay is paid to the municipalities where Terveystalo’s employees have worked, based on the number of employees. This means that all Terveystalo’s clinics and outsourcing operations accrue tax revenue for the municipality they operate in.

As a basic rule, private health care companies are not eligible to deduct value added tax on purchases, which means that VAT is a substantial factor for them. The proportion of value added tax that is not deducted increases our tax footprint. Health care services sold by a private service provider are tax-exempt for customers. Corresponding with previous financial years, our tax footprint provides information of the VAT amount, which has not been deducted. However, some services – such as cosmetic surgery – are not exempt from VAT for the customer, which means we collect and pay VAT. As of financial year 2022, we have added information on VAT paid to the Tax Authorities for the business activities liable to value added tax.

The parent company of the Terveystalo Group and the financing and purchasing companies operate in Finland and pay their taxes to Finland. Terveystalo has companies providing health care and other services in Finland, Sweden, Estonia and the Netherlands. All of the Group companies engage in economic activities in the countries they are domiciled in and pay taxes for their operations in accordance with the local regulations. Terveystalo’s tax footprint reporting covers all of the Group’s Finnish companies. For Sweden and Feelgood, the tax footprint is reported for the period of Terveystalo’s ownership. As the share of revenue represented by the subsidiaries operating in Estonia and the Netherlands is still minor compared to the Group as a whole, the other countries’ share of the tax footprint is presented combined.

In 2022, our tax footprint totaled EUR 235.7 (191.0) million. The tax footprint is an indicator of the total tax revenue generated for society by Terveystalo’s business activities. In addition, we paid a total of EUR 340.6 (316.3) million in fees to private practitioners, who pay their individual taxes separately. The taxes paid by private practitioners are not included in Terveystalo’s tax footprint.

Terveystalo’s tax footprint