Sustainable economic growth
Responsible business is also financially profitable and sustainable. We create value for our customers, society, and our shareholders by continuously developing the clinical, operational, and experienced quality of our work, enabling faster access to care, reducing sickness absences, and employing directly and indirectly more than 15,500 people. We are a significant employer, taxpayer and provider of health services in Finland.
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-functional occupational health 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 public sector services, the customer also reduces queues in the public sector, both in dental care and other health care. In Sweden, a market we expanded into by acquiring Feelgood in 2021, we mainly produce diverse preventive occupational health services, helping Swedish companies and their employees achieve a higher level of well-being.
We create economic value added not only for our customers but also for other key stakeholders, such as our personnel, private practitioners, companies that provide us with materials and services, and society. Our most significant cash flows consist of revenue from service sales, purchases from suppliers of goods and services, wages and salaries paid to our personnel, 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. Following the Feelgood acquisition, the expansion of the operations of Rela-hierojat and the Evalua sales company, we also pay taxes in Sweden, Estonia and the Netherlands for the operations of our local companies in those jurisdictions. 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. It describes the total sum of taxes paid to society and tax-like charges and how this sum is divided. Our direct taxes include corporate income tax, transfer tax and real estate tax, and our indirect taxes include value added tax, for example. 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 of Terveystalo’s clinics and outsourcing operations accrue tax revenue for the municipality they operate in.
As a 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. Indeed, the proportion of value added tax that is not deducted increases our tax footprint. The healthcare services sold by a private service provider are tax-free for customers. However, some services – such as cosmetic surgery – are not exempted from VAT for the customer, which means we collect and pay VAT.
The parent company of the Terveystalo Group and the financing and purchasing company 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 low compared to the Group as a whole, the other countries’ share of the tax footprint is presented as a combined figure.
In 2021, our tax footprint totaled EUR 191.0 (152.3) 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 316.3 (283.2) 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 in Finland
|Performance-based statutory payments related to personnel||62.0||47.8|
|TyEL employee insurance premiums (employer’s share)||50.6||38.6|
|Unemployment insurance contributions (employer’s share)||5.3||4.3|
|Accident insurance premiums and group life insurance premiums + other social security costs||0.7||0.7|
|Employer’s health insurance contributions||5.1||3.5|
|Social security costs outside Finland||0.4||0.6|
|Taxes withheld from pay||76.4||65.1|
|Real estate tax||0.3||0.1|
|Income tax (cash-based)||20.7||17.2|
|Asset transfer tax||0.4||0.1|
|Taxes on dividend payments||1.9||0.8|
|Total tax footprint||191.0||152.3|