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Finland Enacts Budget for 2016 including Individual Income Tax Changes

05 January 2016

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Approved Changes

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Finland

Finland's Budget Bill for 2016 was enacted on 17 December 2015. One of the main measures is the reduction of the individual income threshold for the additional 2.25% solidarity tax, which effectively removes the 29.5% bracket. As a result, the following brackets and rates apply for 2016: EUR 16,700 up to 25,000 - 6.5% over EUR 25,000 up to 40,800 - 17.5% over EUR 40,800 up to 72,300 - 21.5% over EUR 72,300 - 31.75% Other changes include: The permitted range of real estate tax at the municipal level is changed to 0.39% - 0.90% for residential property and to...