korkotulo

Korkotulo, or interest income, is income earned from lending money or from saving money. It includes interest on bank deposits, certificates of deposit, bonds, and other fixed-income instruments, as well as interest charged on loans that a person or entity has provided. In Finnish accounting and taxation, korkotulo is classified as capital income (pääomatulot) rather than earned income, and it is typically reported in the taxpayer’s annual tax return. Financial institutions often provide year-end statements detailing the interest earned during the year.

Tax treatment in Finland places korkotulo under the capital income tax system, which uses two rate brackets. Generally, 30% is charged on the portion of capital income up to a designated threshold, and 34% on the portion above that threshold. The threshold has historically been set at around 30,000 euros, though exact figures can change with tax legislation. The final tax on korkotulo is calculated by the Finnish Tax Administration (Verohallinto) based on the total annual capital income reported by the taxpayer, and may be influenced by deductions or credits applicable to the individual’s overall tax situation. In some cases, withholding at source may occur for certain securities or non-resident taxpayers, but most residents settle their capital income tax through the annual assessment.

As part of the broader category of capital income, korkotulo interacts with other forms such as osinkotulo (dividends) and myyntivoitto (capital gains). Changes in interest rates, financial arrangements, or tax policy can affect the amount of korkotulo that is subject to taxation.