|
The demand for different home services is growing steadily.
"The tax allowance on household work has created the
framework for the sector and made growth and development possible,"
says Veli-Pekka Pihlainen, Kotirinki Oy's managing director.
"Our customers can exploit the right to a 60 percent
household tax allowance. This allowance is a real advantage
because it reduces the tax directly payable, not the gross
income. The real price of the service is 40 per cent of the
paid purchase."
Hämeenlinna-based Kotirinki Oy is as yet the only home-service
company in Finland operating on the franchising principle.
The company, which was established in 2002, has grown rapidly
and operations are increasing quickly. The aim is to become
a nationwide operator. There are now franchising entrepreneurs
in eleven localities.
Kotirinki's basis service is a structured concept of housework.
"We sell the customer a service contract that is based
on a certain price for a certain task i.e. we sell a clean
home and give a satisfaction guarantee for the end result,"
Pihlainen says.
He goes on to say that the need for housekeeping work is
enormous. In the future this field of activity will be able
to give employment to a much greater number than today.
"A frantic pace of life and lack of time are commonplace
for many people. Buying home services is an investment in
the quality of life," Pihlainen says.
|
What household allowance?
In recent years households in many European countries
have been able to deduct in their taxes costs that have
been incurred during the tax year for housework, child
care and help with cleaning.
In Finland it has been possible to deduct some of the
work that people have had done at home since 1997 -
firstly as a trial in a certain area, and then from
2001 over the entire country. The allowance goes to
a person who pays a wage or remuneration for work to
a private worker for normal housework or care work or
maintenance done at their residence or a leisure-time
residence.
A doubling of the maximum amount of the allowance has
been proposed in Finland from the beginning of next
year. One aim is to increase new jobs for the private
service sectors. Use of the allowance is expected to
grow steadily.
In 1998 there were 19,300 allowances compared with
142,836 in 2003. The combined sum of the allowances
has varied over the years from about 8 million euros
(1998: 47.4 million Finnish marks) to more than 90 million
euros. The average allowance has been about 420 to 630
euros per household.
|
>>
www.kotirinki.fi
|
Feedback about this article.
.
Finnfacts is part of