Amendments to Finnish tax laws for fiscal year 2012

Amendments to Finnish tax laws for fiscal year 2012

The Finnish parliament has approved certain amendments effective as of January 1, 2012 to the Finnish tax laws. To mention a few of the most essential ones:

– The corporate profit tax rate is decreased from 26% to 24,5%;

– The tax rate for capital income is increased from 28% to 30%; for the part capital income exceeds 50,000 Euro a tax rate of 32% is applied;

– The maximum amount of tax exempted dividends received from private corporations is decreased to 60,000 Euro from 90,000 Euro;

– Deductibility of interest on loans related to a taxpayers permanent residence is limited to 85% of the interest in 2012 and to 80% in 2013.

Please do not hesitate to contact us should you have any tax related questions.