perintöverojärjestelmän

Perintöverojärjestelmä is the Finnish term for the inheritance and gift tax system. This system taxes the assets received by individuals through inheritance from a deceased person or as a gift from a living person. The tax is levied on the recipient of the inheritance or gift, not on the deceased estate or the donor.

The tax rate is progressive, meaning it increases with the value of the inherited or gifted assets. There are also different tax brackets based on the relationship between the deceased/donor and the recipient. Close relatives, such as spouses and direct descendants, are taxed at lower rates and have higher tax-free allowances compared to more distant relatives or unrelated individuals.

The tax is calculated based on the net value of the inheritance or gift after deducting certain allowable expenses. These expenses can include funeral costs, debts of the deceased, and other legitimate costs associated with acquiring the assets.

If the value of the inheritance or gift exceeds a certain threshold, the recipient is required to file a tax return with the Finnish Tax Administration (Verohallinto). The tax must be paid within a specified period after the assessment is made. Failure to pay on time can result in late payment penalties. The perintöverojärjestelmä aims to ensure a degree of wealth redistribution and to generate revenue for the state.