Pääomatuloverot

Pääomatuloverot are a type of tax levied on capital income in Finland. Capital income encompasses earnings derived from wealth, such as dividends from shares, interest from savings accounts, rental income from properties, and profits from selling assets like stocks or real estate. This contrasts with earned income, which is taxed through income tax (tulovero).

The Finnish tax system categorizes capital income into a separate tax bracket with a different tax rate than earned income. Currently, the tax rate for capital income is a flat percentage. This means that regardless of the amount of capital income earned, the same tax rate applies. This system aims to tax wealth-generating activities and investments.

The purpose of pääomatuloverot is to generate revenue for the state and to ensure a degree of fairness in the tax system by having different tax treatments for different types of income. Taxpayers are responsible for reporting their capital income to the Finnish Tax Administration (Verohallinto) annually. The administration then assesses the tax liability based on the declared income. There are certain deductions and allowances available that can reduce the taxable amount of capital income, such as expenses related to generating that income. The specifics of what constitutes capital income and the applicable rates and deductions can be found in Finnish tax legislation.