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.