Amendments to Finnish tax regulation
Capital income tax increased and became progressive. Tax rate for capital income is 30 percent and if capital income exceeds EUR 50,000, the tax rate is 32. Tax rate on capital income equally like for interest payments is 30 percent. Tax rate for dividend payments is 21 percent (Finnish residents).For foreign investors the maximum tax rate is 30 percent - unless applicable tax treaty provides a lower tax rate.Tax at source from interest will also be increased from 28 to 30 percent. Tax at source from interest is only applicable to private persons who are generally tax liable in Finland.
It should be noted that tax rate of 30 percent shall only be applied to interest accrued as of 1 January 2012. Current tax rate of 28 percent is applicable to interest accrued from year 2011 regardless of the payment date.
For further information, please contact
Kimmo Koskinen
Manager, Transaction Management
kimmo.koskinen@euroclear.eu
