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 reporting is based on the guidance on tax reporting issued on 1 October 2014 by the Government Ownership Steering Department of the Prime Minister’s Office. The report excludes mandatory insurance premiums that are included in salary costs. These insurance premiums, which are directly related to salaries, are dealt with as direct salary costs, due to the nature of
these kinds of insurance. The company does not report small amounts of value-added tax included in foreign travel and training costs.

Terrafame started the ramp-up of production in 2015, and the companies do not yet have any taxable income. However, a considerable amount of tax expenses have accumulated due to the energy and fuel taxes related to the companies’ operations. In addition, the company has paid taxes related to the acquisition and ownership of assets, as normal.

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 2022 and 2021

On 31 December 2022, the company had unrecognised deferred tax assets of approximately EUR 23.5 million. Deferred tax assets are made up of previous fiscal years’ confirmed but unused tax losses that remain after the estimated taxable income for the fiscal year 2022.