Tuloverolakiin

Tuloverolakiin is a term that refers to the Finnish Income Tax Act. This legislation governs how individuals and corporations are taxed on their income within Finland. The act is comprehensive, outlining various types of income subject to taxation, such as earned income, capital income, and business income. It also details the progressive tax rates applied to earned income, meaning that higher earners pay a larger percentage of their income in taxes.

The Finnish income tax system is characterized by its division into two main categories: earned income tax and capital income tax. Earned income, which includes wages, salaries, and pensions, is taxed progressively. Capital income, on the other hand, which encompasses income from investments like dividends and interest, is taxed at a flat rate. The Tuloverolakiin specifies the allowances and deductions that taxpayers can claim to reduce their taxable income, such as those related to work-related expenses or certain investments.

The act is regularly updated by the Finnish Parliament to reflect economic changes and government policy objectives. Its administration is overseen by the Finnish Tax Administration (Verohallinto), which is responsible for issuing tax assessments and collecting taxes. The Tuloverolakiin aims to ensure a fair and efficient tax system that contributes to public services and the Finnish economy. It also includes provisions for international taxation, addressing situations involving cross-border income and residency.