lauantai 23. maaliskuuta 2013

Corporate tax reform in Finland

Corporate tax rate in Finland to 20 per cent - great news for foreign shareholders

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 
You can also acquaint yourself with my previously published article about taxation aspects in mergers and acquisitions at
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.

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