Osinkotulo

Osinkotulo means income derived from ownership of shares in a company, most commonly dividends paid to shareholders. It covers cash dividends and other distributions that a company designates as returns on equity. Osinkotulo is a specific category of income under Finnish tax law and is distinct from earned income such as wages or salaries.

In Finland, osinkotulo is generally treated as capital income for tax purposes. The taxation of capital income depends on the taxpayer and the amount of dividends received; dividends are usually included in the taxpayer’s capital income, and withholding taxes may apply to non-residents. The precise tax treatment, including rates and any reliefs, follows the national capital income tax framework and can vary with the taxpayer’s overall tax situation and changes in law.

For corporate recipients, osinkotulo is governed by corporate tax rules and may be affected by concepts such as participation exemptions, which can provide relief from taxation for certain dividends under specific ownership conditions. This means that, for some corporate shareholders, part or all of the received dividends may be exempt from corporate taxation.

Dividends are typically reported in annual tax returns, and the payer may withhold tax at source for non-residents. Tax planning around osinkotulo often considers factors such as applicable tax treaties, ownership structures, and eligibility for reliefs or exemptions.

See also: Finnish tax system, dividends, corporate taxation, capital income.