korkokuluverot

Korkokuluverot is a Finnish term used in tax discussions to describe taxes or policy rules that affect the cost of borrowing for taxpayers by altering the tax treatment of interest expenses or interest income. It is not a single formal tax, but a broad label for various measures that influence how interest costs are treated in the tax system.

Definition and scope

Korkokuluverot refers to a category of provisions related to interest in corporate and personal taxation. The term can encompass rules that restrict or disallow the deduction of interest expenses (net interest deductions), as well as rules that tax or impose withholding on interest income or cross-border interest payments. In practice, the concept covers both the cost side (deductibility of interest) and the revenue side (taxation of interest income or related instruments).

Rationale and objectives

Policies grouped under korkokuluverot aim to curb excessive leverage, reduce base erosion and profit shifting, and ensure a fairer distribution of the tax burden between debt and equity financing. By altering the tax advantages of borrowing, governments seek to influence corporate capital structure and cross-border financing decisions.

Context and usage

In Finnish public discourse and academic writing, korkokuluverot is often used as shorthand for ongoing discussions about how interest should be treated under the tax system, especially in relation to international reforms and directives. The exact rules and their implementation vary by jurisdiction and over time, reflecting changes in national policy and international tax standards.

See also

Interest deduction limits, Interest income taxation, Withholding tax on interest, BEPS, ATAD, Corporate taxation.