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Measures List
First Prev Next Last Separator
Measure Name
Date when measure came into force
Change in capital income tax rate 2012/01/01
Business angel tax relief 2013-2015 2013/01/01
Tax on investment income 2014/01/01
Results 1 - 3 of 3.

Generic Tax Name Personal income tax - Tax on investment income
Tax name in the national language Vero pääomatulosta
Tax name in English Tax on investment income
Member State FI-Finland
Tax in force since 1992/12/30
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/06/25
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Income Tax Act of 30 December 1992 (1535/1992).

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



Geographical Scope

Domestic-source income of non-residents is Taxed
Not Taxed

Non-residents are taxed on their income in Finland, according to the Act on Withholding Tax on Non-residents Income.

Employment incomes of married couples are Taxed jointly
Taxed separately

Married persons are taxed separate both on earned income and capital income. Minors are taxed on their own income, separate from their parents.

Tax object and basis of assessment
As general rule, taxable income under personal income tax includes


Finland applies a dual income tax system, where capital (investment) income and earned income are taxed separately. On taxation of earned income, see "Personal income tax - Taxes on earned income".

Investment income includes the proceeds from capital, capital gains and other income yielded by assets. Investment income is for example:

  • interest and rental income 
  • dividends from companies listed on a stock exchange (85% taxed as investment income, 15% is tax exempt)
  • benefits from a life insurance policy 
  • benefits from voluntary pension insurances (conditional to certain rules) 
  • income from forestry 
  • distributions by investment funds 
  • income from patents or copyrights if the patents or rights have been inherited or received under a will or acquired for a financial consideration 
  • income from the sale of materials taken from the ground 
  • a money loan (shareholder loan) outstanding at the end of a tax year, if the loan has been given by a company to an individual during a tax year, and if the individual, members of his family or they together directly or indirectly control at least 10 per cent of the shares or the voting power in the company

In addition, the category of investment income includes the investment income share of certain types of income, such as dividends from companies not listed on a stock exchange, profits from business (income from a partnership or the income of a sole proprietor), agricultural income. For example, the investment income share from business profits is calculated annually on the basis of the net wealth of the company, and is 20 per cent of the net wealth. Partners and sole proprietors may claim that the investment income share is 10 % or 0 % of net assets. Surplus income is taxed as earned income.

Interest on bank accounts, deposits and certain bonds is taxed under Withholding tax at source on interest.

Income considered Domestic income
Worldwide income (subject to double-tax relief)

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable




Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:


Deductions from the tax base
The following items are usually (partially or fully) deductible


Of interest on mortgages, 65 % is deductable.

The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents

The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:


Losses can be
Carried-forward for Indefinite
Carried-back for Indefinite
Transferred to spouse or partner

The concept of loss in the current tax system has several meanings. The loss of earlier tax years in the category of investment income is deducted from the investment income of the tax year according to the carry forward principle during the 10 years following the loss year. Losses from business profits or agricultural income sources are deducted from the investment income of the same tax year if the taxpayer or, in the case of spouses, both spouses so demand; otherwise the losses are carried forward for 10 years and set off against income from the same source.

Capital losses may only be set off against capital gains arising in the same year and the following five years. Unlike capital gains, they are not taken into account when calculating the deficit in the category of investment income. Losses arising from the disposal of the permanent home and household effects are not deductible.

If the amount of natural deductions, deductible interests, earlier losses and losses for the tax year from business profits and sources of agricultural income which the taxpayer demands to be deducted, exceeds the amount of investment proceeds for the tax year, the excess is the deficit in the category of investment income. A taxpayer is entitled to a credit for the deficit against his income tax on earned income. The amount of the credit is 30 per sent of the deficit up to 1,400 euros. The amount is increased by 400 euros if the taxpayer or the spouses have supported a minor during the tax year, and by 800 euros if they have supported two or more minors. A credit which is due to premiums paid for a voluntary pension insurance are deductible irrespective of the limits in euros. The amount of the deficit for which credit cannot be given is converted into a loss for the tax year and, as such, can be carried forward and deducted from investment income over the next 10 years.

The following income is exempted from income tax


Exempted from capital income tax is

  • Interest income on bank accounts and certain bonds, on which withholding tax is levied on the interest income
  • A capital gain derived from the sale of the taxpayer's own flat or house, if it has served uninterrupted as the taxpayer's of his family's permanent home for at least two years prior to the sale
  • The annual gain from the disposal of household effects, if it does not exceed € 5,000
  • Exchange rate gains, if they do not exceed € 500 per annum
  • A capital gain from disposal of real property used in agriculture or forestry, a share in general or limited partnership or shares in a company giving the right to at least 10 per cent ownership in the company, when the real property or shares have been owned for more than ten years by the taxpayer or the taxpayer and the person from whom the taxpayer received the property without a financial consideration, and the recipients are certain close relatives.


The taxpayer is entitled to deduct from investment income all expenses incurred in acquiring and maintaining such income (natural deductions).

The taxpayer has a right to deduct his interest expenses only from investment income. The interest expenses are deductible if the debt is related to the acquisition of taxable income. The interest on study loans guaranteed by the Finnish State is also deductible. The amount of these deductible interests is unlimited. If the debt is related to the acquisition or repair of the taxpayer's or his family's permanent dwelling, 85% of the interest expenses are deductible.

However, that part of the interest corresponding to the entrepreneur's private use (in partnerships and sole proprietorships) which exceeds profits derived from business activities (calculated on the basis of detailed rules), is not deductible.

Salaries, wages, pensions and other remuneration paid by a sole proprietor to a spouse or other family member under the age of fourteen are not deductible when calculating the taxable business income of a sole proprietor.

The repayment by a shareholder of a limited company of the loan he/she has received from the company is deductible, provided that the repayment takes place within five years.

The taxpayer has a right to deduct exchange losses on foreign currency debts taken for acquiring or maintaining income as natural deductions. Exchange losses relating to debts taken for acquiring income which is subject to the tax withheld at source from interest is not deductible.

The taxable capital gain is calculated by deducting the acquisition costs and sales costs from the sales price. A minimum deduction of 20 % of the sales price is applied. If the property has been acquired not less than 10 years before the sale the minimum deduction is 40 %. If the property has been received without financial consideration, the acquisition cost is the value that has been used in determining inheritance and gift tax.

A private person is allowed to deduct 50  % of an investment into young non-listed companies’ equity from his or her capital income in 2013 - 2015. The minimum eligible amount of the investment is 10,000 €  and the maximum amount 150,000 €. The corresponding minimum amount of deduction is thus 5,000 € and maximum amount 75,000 €. The maximum amount of deduction per investor is 150,000 €. It is also required that the investor does not have a majority of voting power in the company before or after the investment. The deduction is returned to private person’s capital income when and if the equity stake acquired through investment is sold in the future.

Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  0.00  EUR/Natcur
To  30,000.00  EUR/Natcur
Rate: 30.00 %
Bracket 2 From  30,000.00  EUR/Natcur
To   EUR/Natcur
Rate: 33.00 %

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Annuities from life insurance
Prizes and awards
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities

Withholding taxes
The tax is withheld when paid to residents on: Dividends: 7.50 %
Final Creditable
Interests from governments bonds: 30.00 %
Final Creditable
Interests from corporate bonds: 30.00 %
Final Creditable
Interests from special saving accounts: 30.00 %
Final Creditable
Interests from deposits: 30.00 %
Final Creditable

Withholding tax on dividends from non-listed companies is 7.50 % and on dividends exceeding 150,000.00 EUR 27.00 %.

Withholding tax is 25.50 % for dividends from listed companies.

Tax due date

Tax collector

By annual assessment.The prefilled tax return must be filed in May on the day mentioned in the return and on 15th of May in the year following the tax year at the latest. In certain cases (dividends from companies listed in the stock exchange, regular small rental income) a withholding tax is collected.

Special features

Partnerships are not taxed separately. Their income is divided among the partners and is taxed as their personal income.

Economic function

Environmental taxes

Tax revenue
ESA95 code d51m (d51a + d51c1)

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,836.00 EUR 0.92
2011 1,997.00 EUR 1.01
2010 1,589.00 EUR 0.85
2009 1,358.00 EUR 0.75
2008 1,955.00 EUR 1.01
2007 2,441.00 EUR 1.31
2006 1,895.00 EUR 1.10
2005 1,517.00 EUR 0.92
2004 11,110.00 EUR 7.01
2003 1,008.00 EUR 0.67
2002 1,002.00 EUR 0.68
2001 1,071.00 EUR 0.74
2000 1,654.00 EUR 1.21