Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/14/2012

Finland - Tax changes in budget; VAT rates to increase 

December 14: The Budget tax proposals for 2013 (published by the Finnish government in September 2012) include measures to revise certain provisions of Finland’s direct taxation laws, and include proposals to:
  • Limit the maximum exempt compensation for use of a personal car for work-related travel
  • Limit the deductibility of voluntary pension insurance premiums and contributions to qualifying long-term savings plans by increasing the age limit
  • Limit the deductibility of interest
  • Double the rates of depreciation for some industrial investments
  • Provide a new tax bracket for inheritance tax and gift tax
  • Increase the asset transfer tax
  • Provide a tax incentive for R&D costs
  • Impose a tax on financial transactions

Read a December 2012 report prepared by the KPMG member firm in Finland: Budget Proposal for the year 2013 – Changes in Direct Taxation


Read an October 2012 report [PDF 45 KB] on tax provisions affecting individual taxpayers in the budget: Finland – New Budget Slips in Some Higher Taxation

VAT rates to increase in 2013

The rates of value added tax (VAT) in Finland will increase effective 1 January 2013.


  • The standard rate of VAT will increase from 23% to 24%.
  • The 13% VAT rate on foodstuff, certain animal food, and restaurant and catering services will increase to 14%.
  • The 9% VAT rate on passenger transport, accommodation services, books, newspaper and magazine subscriptions, and medicine will increase to 10%.

The new VAT rates will apply to supplies made (i.e., actualized) on or after 1 January 2013.


Read a December 2012 report prepared by the KPMG member firm in Finland: Change in VAT rates as of 1 January 2013 in Finland

Securities market legislation effective in 2013

Finnish securities market law will undergo a significant reform with new legislation having an effective date of 1 January 2013.


The goals of the securities market reform are (1) to aim for better functioning, clearer, and more understandable rules so as to enhance competitiveness and reliability of the Finnish securities market, and (2) to improve protection for investors.


Read a December 2012 report prepared by the KPMG member firm in Finland: Reform of Securities Market Legislation comes into force on 1 January, 2013




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Washington, DC 20006.

 

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