Perintöverotuksen

Perintöverotus, or inheritance tax, is a Finnish tax levied on those who receive assets through inheritance. It is a state tax administered by the Finnish Tax Administration (Verohallinto) and is separate from gift taxation (lahjaverotus). The tax is applied to the value of the inherited assets received by the heir, including money, real estate, and other property, according to applicable law.

Who pays and what is taxed: The tax is paid by the beneficiary, not by the estate itself. The tax base is the net value of the inheritance after deducting debts and certain costs associated with the estate. The exact calculation depends on the type of asset and the deductions permitted by law.

Tax classes and rates: Inheritance tax uses two tax classes that determine the rate schedule. Class I includes close relatives such as spouses, registered partners, and children, while Class II covers more distant relatives and unrelated beneficiaries. Within each class, the rates are progressive, meaning the tax rate increases with the size of the inheritance.

Deductions, exemptions and administration: The tax base allows certain deductions for debts and costs related to the estate, and there are standard exemptions and allowances that reduce the payable amount. The specific deductions and exemption levels are defined by law and can change over time. Verohallinto handles the assessment and collection of the tax, and beneficiaries file a perintöverotuksen declaration with the authority. Payment deadlines and procedures are issued by Verohallinto, and there are avenues for appeals under the tax framework.

Relation to other taxes and planning: Perintöverotus is separate from lahjaverotus, the gift tax, though estate and gift planning can influence overall tax liability.