Poolvastikke

Poolvastikke is a term used in Finnish tax law referring to a situation where a company distributes profits or assets to its shareholders that are not considered a taxable dividend. This can occur in various scenarios, such as the repayment of share capital or the distribution of assets from a liquidation. The key distinction from a dividend is that poolvastikke is generally treated as a return of capital, meaning it reduces the shareholder's acquisition cost of their shares rather than being taxed as income immediately.

The specific rules and conditions for what constitutes poolvastikke are complex and depend on the nature of the distribution and the company's capital structure. For instance, if a company repays part of its share capital, this repayment may be considered poolvastikke if certain legal requirements are met. Similarly, assets distributed to shareholders upon the dissolution of a company can be classified as poolvastikke.

When poolvastikke is received by a shareholder, it typically reduces the tax basis of their shares. If the poolvastikke exceeds the shareholder's adjusted acquisition cost, the excess amount is generally treated as capital gains and taxed accordingly. It is crucial for both companies and shareholders to carefully consider the tax implications of such distributions and to ensure compliance with Finnish tax legislation. Consulting with a tax professional is often advisable to navigate these intricate rules.