Pääomatuloveron

Pääomatulovero is a Finnish tax levied on capital income. Capital income includes income derived from wealth, such as interest, dividends, rental income, and capital gains from selling assets like stocks or real estate. This differs from earned income, which is subject to income tax.

The tax rate for capital income in Finland is typically a flat rate. Currently, this rate is 30% for income up to €30,000 per year, and 34% for capital income exceeding that threshold. This progressive structure ensures that those with higher capital income contribute a proportionally larger amount in taxes.

Pääomatulovero is a significant component of the Finnish tax system, contributing to public revenue used for funding social services, infrastructure, and other public expenditures. The Finnish Tax Administration (Verohallinto) is responsible for administering and collecting this tax. Individuals are required to declare their capital income, and the tax is often paid in installments throughout the year based on preliminary assessments. Understanding pääomatulovero is crucial for individuals and entities in Finland who derive income from investments and assets.