pääomatulotulovero

Pääomatulotulovero, or capital income tax, is the Finnish tax levied on taxable capital income. It applies to income such as interest, dividends, capital gains from the sale of assets (stocks, funds, real estate), rent income, and other forms of capital profit. The tax is separate from the tax on earned income and is administered as a state tax.

The rate structure consists of two main rates. As of recent years, 30% is charged on the portion of taxable capital income up to a threshold (commonly 30,000 euros), and 34% on the portion that exceeds that threshold. The exact thresholds and rates can change with the national budget, so taxpayers should verify the current rules for a given tax year.

Tax base and deductions: The tax is calculated on net capital income after applicable deductions. Capital losses can generally be offset against capital gains, and unused losses may be carried forward under Finnish tax rules. Not all income classified as capital income may be taxed identically, and foreign-sourced capital income may be subject to double taxation relief or other adjustments.

Administration: Pääomatulotulovero is collected by the Finnish Tax Administration (Verohallinto). Some capital income may be taxed at source (for example, withholding on certain dividends or interest), while the remainder is reported and finalized in the annual tax return. It is a state tax, separate from municipal taxes, which apply to earned income.

International considerations: Residents with cross-border capital income may rely on double taxation agreements to prevent double taxation and to determine where the tax is payable.