Lisäravitetta

Lisäravitetta, also known as additional tax, is a supplementary tax levied on top of the regular income tax in Finland. It was introduced in 2019 as a temporary measure to address the country's budget deficit. The tax is progressive, meaning that the rate increases with higher income levels. The rates are set at 0.5%, 1%, 1.5%, and 2% for income brackets above 250,000 euros, 500,000 euros, 750,000 euros, and 1 million euros, respectively. The tax is applied to the portion of income exceeding the threshold for each bracket. For example, if an individual earns 1.2 million euros, they would pay the additional tax on the amount exceeding 1 million euros at the highest rate of 2%. The tax is intended to be a temporary measure, with the government's goal being to gradually reduce the rates and eventually abolish the tax. The revenue generated from lisäravitetta is used to support public services and reduce the budget deficit. The tax is administered by the Finnish Tax Administration.