Positive news for businesses as Finland intends to cut its corporate tax to 20 per cent. Foreign owned companies are the real winners.
The Finnish Government announced the contemplated reform at a press conference on March 23rd, 2013 at which the Prime Minister also disclosed measures aimed at reducing Finland’s budget deficit.
The tax cut would be partially financed by higher taxes on stock dividends which naturally does not affect an international owner as he is liable to any such taxes in his home country but not in Finland.
All good seems to have a price tag: Finnish resident shareholders’ dividend taxation gets harder: shareholders of non-quoted companies will pay tax on the dividends depending of the net value of the company. This means an aggregate tax burden of 26,4 per cent (corporate tax + dividend tax) for the Finnish resident shareholders.
The reform is in line with the changes made in other Nordic countries. A similar tax cut was announced Sweden and Denmark resulting in a 22 per cent tax rate.
More about mergers and acquisitions in Finland at my website http://www.salvelex.com/
You can also acquaint yourself with my previously published article about taxation aspects in mergers and acquisitions at www.isnare.com/?aid=1815709&ca=Legal
Bolagsskatten i Finland till 20 %
Bolagsskatten i Finalnd sänks från 24,5 procent till 20 procent. Sänkningen kompenseras genom en hårdare beskattning av dividender. Detta drabbar förståss inte svenska aktieägare (allmänt skattskyldiga i Sverige) eftersom de inte betalar källskatt på dividender.