Veriarvo

Veriarvo is a Finnish term that translates roughly as "tax value." In Finnish taxation and accounting practice, it denotes the value used to determine tax liability or the taxable base for assets and transactions. It is typically distinct from market value, which reflects current prices in the market, and from book value, which reflects accounting depreciation and historical cost.

Etymology and scope: The term is derived from vero (tax) and arvo (value). In statutory usage, veriarvo may be set by official assessments or by statutory rules that specify how taxable value is calculated for properties, vehicles, and other taxable items.

Calculation and administration: The veriarvo is typically determined by the tax authorities or by official appraisal procedures. It can depend on criteria such as location, size, property type, and recent sale or cost data. The value may be revised periodically and is subject to objection or appeal under tax procedures.

Relation to other valuation concepts: As a tax-based value, veriarvo often differs from market value or depreciation-based book value. For example, a building's veriarvo may be lower than its market value, reflecting tax rules on property valuation, while depreciation calculations may use a different basis.

In practice: Veriarvo is a central concept in Finnish tax and property valuation, affecting local property taxes, asset depreciation for tax purposes, and calculations of taxable gains. Debates focus on fairness, transparency, and regional consistency.