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Government amends its plans to reform dividend taxation – details

24 June 2013

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Approved Changes

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Finland

The government announced (Press release 153/2013) that it is amending its tax plan in respect of taxing dividends received by resident individuals. Details of the amendments are summarized below. Dividends from quoted companies -   85% is taxed as shareholder's income from capital, whereas 15% is exempt. Currently, 70% is taxed as capital income and the remaining 30% is exempt. Dividendsfrom non-quotedcompanies -   25% of dividends representing an annual yield of up to 8% (i.e. the 8% yield ceiling) of the mathematical value of the shares up to EUR 150,000 per shareholder per year is taxable capital income. 85%...