Pääomatuloksi

Pääomatuloksi is a Finnish tax term used to describe income that is taxed as capital income (pääomatulot) rather than earned income (ansiotulot). In practice, pääomatuloiksi fall into income from assets such as interest on deposits, dividends from shares, capital gains from the sale of investments, rents and royalties tied to capital investments, and certain other passive earnings. Wages, salaries, pensions and most benefits are classified as ansiotulo, not pääomatulo.

Tax treatment of capital income is separate from earned income. In Finland, capital income is taxed at a two-tier rate in many cases: a lower rate on the portion up to a threshold and a higher rate on the portion above that threshold. The common reference point has been 30 percent on the first portion and 34 percent on the remainder, with the relevant threshold and rates subject to annual budget decisions. Capital income is generally subject to national (state) tax, while municipal tax tools primarily relate to earned income. This distinction is a key feature of the Finnish tax system.

Deductions and losses related to capital income can affect the amount taxed as pääomatuloa. Typical deductible items include acquisition costs of assets and interest expenses connected to financing the investments. Net capital losses may be carried forward to offset future capital income, within the rules set by the tax authority.

Taxpayers report pääomatulot in their annual tax return, and the Finnish Tax Administration computes the final tax according to the applicable capital income rates and any allowed deductions. The concept of pääomatuloksi helps separate the taxation of wealth-derived income from wages and other earned earnings, guiding how different streams of income are regulated and taxed.