lahjaverolaki

The Finnish word "lahjaverolaki" translates to "Gift Tax Act" in English. This law governs the taxation of gifts received in Finland. The Gift Tax Act applies to gifts that are not considered income or subject to other taxation, such as inheritance tax. The purpose of the gift tax is to ensure that significant transfers of wealth are subject to taxation, similar to how income and inheritances are.

The gift tax is levied on the recipient of the gift, not the giver. The tax rate is progressive, meaning that the larger the value of the gift, the higher the tax percentage applied. There are also tax-free thresholds for gifts received. These thresholds apply to gifts received from the same person within a three-year period. For example, a parent can gift a certain amount to their child every three years without the gift being taxed. If the value of the gift exceeds these tax-free amounts, the excess is subject to gift tax.

The tax brackets and tax-free amounts are set by law and can be adjusted over time. The value of the gift is determined by its fair market value at the time of the transfer. Certain types of gifts, such as gifts to public entities or for charitable purposes, may be exempt from gift tax under specific conditions. It is the responsibility of the recipient to report the gift to the Finnish Tax Administration (Verohallinto) and pay the applicable tax. Failure to do so can result in penalties and additional taxes. The Gift Tax Act aims to create a fair and equitable system for taxing significant gratuitous transfers of wealth.