Finnish Tax Administration Brief Statistics 2016

Brief statistics

2016

TAXATION IN FINLAND Finland’s taxation is subject to decisions by the Finnish Parliament, the European Union and the municipalities of Finland. It is governed by tax legislation, which is prepared by the Ministry of Finance and enacted by the Parliament.

The Tax Administration collects two thirds of all taxes and tax-like charges. In addition to the Tax Administration, taxes and charges are collected by the Customs and Trafi, the Transport Safety Agency. The Customs collects excise duties and import duties, whereas Trafi collects motor vehicle taxes.

Income received by individual taxpayers is divided in earned income and capital income. Earned income consists of pay from employment, pensions and social benefits.

Capital income consists of sources such as dividends, rental income and income from selling property.

Capital income and earned income are taxed differently: capital income is taxed according to a fixed rate and earned income according to a progressive tax scale, where the rate increases as income increases.

Taxpayers may deduct any costs incurred when acquiring or maintaining the income.

CONTENTS Income of public bodies, 2014.............................................................................. 4 Expenses of public bodies, 2014........................................................................... 5 Tax revenue in Finland, 2014.............................................................................6–7 Tax revenue collected by the tax administration in 2014 and 2015........................... 8 GDP, taxes, net taxes and central goverment debt, 1995–2014................................. 9 Different tax types as percentages of tax revenues, 1995–2014.............................. 10 Taxes and tax-like charges, breakdown of taxes by taxpayer category 2014............... 11 State income tax and its breakdown by taxpayer category 2014.............................. 12 Municipal income tax and its breakdown by taxpayer category 2014........................ 13 Direct taxes and tax-like charges imposed on the basis of income 2000–2014......... 14 Tax arrears by tax type, 2013–2015..................................................................... 15 Taxes debited on the basis of audits by the tax administration 2013–2015.............. 16 Tax refunds and back taxes, by taxpayer category, 2014......................................... 17 Direct taxes as percentages of taxable income, 2014............................................. 18 Incomes of individuals in 2014 state taxation 2014.............................................. 19 Important tax deductions, 2012–2014............................................................20–21 Maximum deductions in state and municipal taxation 2013–2016.......................... 22 Income tax scale for 2016................................................................................... 23 Breakdown of wage earners, by basic withholding rates, 2016................................ 24 Breakdown of pension recipients, by basic withholding rates, 2016......................... 24 Taxes as percentages of GDP by country 2012–2014............................................. 25 Tax structures by country 2014............................................................................ 26 Maximum marginal income tax rates 2014–2015, by country,................................ 27 Proportions of VAT, 2013 and 2014, in percentages.............................................. 28 VAT rates in the EU, international comparison 2016.............................................. 29

The income tax rate for incorporated companies and other entities is fixed.

Value added tax (VAT) is a consumption tax which the consumer pays when buying goods or services. The rate of VAT is fixed. Businesses pay VAT on their sales to the State each month.

2 F I N N I S H TA X A D M I N I S T R AT I O N

Source: Tax Administration unless otherwise indicated

B R I E F S TAT I S T I C S 3

INCOME OF PUBLIC BODIES, 2014

EXPENSES OF PUBLIC BODIES, 2014

Public finances is what is made up by the State of Finland, Finnish municipalities, the Provincial Government of Åland Islands, employment pension and other social security institutions.

Biggest income items in euros 2014 5.6

4.3

9.9 22.6 34.3

13.1 ¤ 119.2 billion

52.2

¤ 112.7 billion 17.1 26.3 17.1 29.5

Social security Medical care

43.8 % 14.3 %

26.2 %

Public administration Education

8.3 %

23.3 %

Expenses relating to the economy National security, defence, law and oder

Direct income tax: earned, capital, corporate

30.4 %

Taxes on production and on imports: VAT, energy, car tax, alcoholic beverages Social security contributions from employers and employees Other, including interest income TOTAL Source: Statistics Finland, National accounts

4 F I N N I S H TA X A D M I N I S T R AT I O N

20.1 % 100 %

Housing, utilities, recreation, culture and environment TOTAL

14.3 % 11.0 % 4.7 % 3.6 % 100 %

Source: Statistics Finland, National accounts

B R I E F S TAT I S T I C S 5

TAX REVENUE IN FINLAND 2014 State taxes and other similar fees Taxes on income and property Income tax Individual income tax Corporate income tax Inheritance and gift tax Tax withheld at source from interest income Bank tax Public Broadcasting Tax* Taxes on goods and services Value added tax Tax on insurance premiums Pharmacy fees Excise duty Excise duty on tobacco Excise duty on alcoholic beverages Excise duty on sweets, ice cream and soft drinks Fuel tax Environmental tax on beverage bottles and cans Other taxes Transfer tax Car tax Tax on lottery prizes Tax on certain vehicles Tax on waste Tax on rails Vehicle registration fee Other tax-like charges Seafarers’ welfare and rescue levy 1) State share of lottery profits and the profits of the Slot Machine Association Forest management fees, hunting and fishing licences Penalty interests, other sanctions and tax increases TAXES TOTAL 6 F I N N I S H TA X A D M I N I S T R AT I O N

€ million

% of total taxes

43,045 12,875 11,575 9,142 2,433 499 142 138 521 19,855 18,948 750 157 6,286 788 1,381 257 3,846

47.1 14.1 12.7 10.0 2.7 0.5 0.2 0.2 0.6 21.7 20.7 0.8 0.2 6.9 0.9 1.5 0.3 4.2

14

0.0

2,817 708 916 218 877 44 18 36 1,125 1

3.1 0.8 1.0 0.2 1.0 0.0 0.0 0.0 1.2 0.0

963

1.1

23

0.0

76 91,423

0.1 100.0

Oil waste duty Income from emissions permit selling Tax revenue from outside the state budget Oil damage levy Fire insurance duty Strategic stockpile fee Nuclear energy research fee Municipal taxes Municipal tax - paid by individuals - paid by corporate taxpayers Tax on dogs Real property tax Other taxes Taxes going to churches Church Tax paid by individuals* Church Tax paid by corporate taxpayers Insurance and social security contributions to the Social Insurance Institution Workers’ health insurance contributions Employers’ health insurance contributions For employment pension schemes, total Employers' Employees' For unemployment schemes, total Employers' Employees' Taxes and fees paid forward to the EU TAXES TOTAL

€ million 3 59 87 25 11 43 8 21,159 19,645 18,233 1,412 1 1,512 1 1,037 926 111

% of total taxes 0.0 0.1 0.1 0.0 0.0 0.0 0.0 23.1 21.5 19.9 1.5 0.0 1.7 0.0 1.1 1.0 0.1

3,659

4.0

1,865 1,612 20,388 14,603 5,785 1,964 1,586 378 171

2.1 1.8 22.3 16.0 6.3 2.1 1.7 0.4 0.2

91,423

100.0

Source: Statistics Finland, National Accounts 1) The welfare and rescue levy is a tax-like charge for the benefit of seafarers. * Source: Finnish Tax Administration. Public Broadcasting Tax of individuals and corporations is not included in the national accounts, nor is the church tax of individuals.

B R I E F S TAT I S T I C S 7

TAX REVENUE COLLECTED BY THE TAX ADMINISTRATION IN 2014 AND 2015

Income tax; individuals Income tax; corporate taxpayers VAT Social security contributions Real estate tax Other taxes TOTAL

GDP, TAXES, NET TAXES AND CENTRAL GOVERMENT DEBT, 1995–2014

2014 E million

2015 E million

% change

29,468.8 3,987.4 14,135.5 1,689.5 1,512.0 3,185.9 53,979.1

30,081.1 4,567.2 14,248.2 1,663.4 1,605.0 2,958.5 55,123.4

2.1 14.5 0.8 -1.5 6.2 -7.1 2.1

Income tax; individuals

54.6 %

VAT Income tax; corporate taxpayers Other taxes

8.3 % 25.8 % 3.0 %

Social security contributions 2.9 % Real estate tax

5.4 %

TOTALS

100 %

Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014*

GDP E million

Taxes1) %

Net taxes 2) %

98,556 102,060 110,738 120,382 126,923 136,261 144,437 148,289 151,569 158,477 164,387 172,614 186,584 193,711 181,029 187,100 196,869 199,793 202,743 205,178

44.5 45.7 45.0 44.8 44.3 45.8 43.2 43.3 42.4 41.8 42.1 42.2 41.5 41.2 40.9 40.8 42.0 42.8 43.7 43.9

14.5 18.1 20.2 21.6 21.4 24.8 22.6 22.1 20.9 20.4 20.7 21.2 21.6 20.9 17.3 17.0 18,4 18.2 18.5 17.8

Central goverment debt 3) % 61.0 64.8 63.0 58.0 53.6 46.6 42.8 40.0 41.8 40.3 36.5 34.1 30.0 28.1 35.5 40.2 40.5 42.0 44.3 46.4

Source: Statistics Finland.

1) Taxes as % of GDP. 2) The difference between taxes and income transfers by public authorities as % of GDP. 3) Central government debt, % of GDP. *) Preliminary information

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B R I E F S TAT I S T I C S 9

DIFFERENT TAX TYPES AS PERCENTAGES OF TAX REVENUES, 1995–2014

Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Public sector tax revenue € million 43,855 46,639 49,792 53,965 56,180 62,432 62,354 64,261 64,247 66,278 69,230 72,763 77,447 79,823 74,103 76,315 82,750 85,269 88,589 89,976

Income and property tax1) % 41.5 43.4 42.5 42.9 42.5 46.6 44.4 44.1 42.1 42.0 41.6 41.9 42.9 42.8 39.9 40.2 39.4 38.4 39.3 39.6

Social security contr. 2) % 26.9 25.7 25.0 25.2 25.5 23.6 25.2 24.9 25.2 25.3 25.8 25.8 25.6 26.1 27.6 27.0 26.7 27.5 26.8 26.7

Consumption taxes etc. % 31.5 30.9 32.6 31.9 32.0 29.9 30.5 31.1 32.8 32.7 32.6 32.3 31.5 31.1 32.6 32.8 33.9 34.0 33.9 33.7

Source: Statistics Finland, National accounts The church tax of individuals is not included in the national accounts.

1) Includes national pension and health insurance contributions.

2) Includes employment pension and other social security contributions; does not include national pension and health insurance contributions.

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TAXES AND TAX-LIKE CHARGES, BREAKDOWN OF TAXES BY TAXPAYER CATEGORY 2014

Taxpayer category INDIVIDUALS, TOTAL Wage earners Pensioners Farmers and forestry taxpayers Business and self-employed Main partners of limited companies, active partners of partnership companies Other individuals Estates of deceased persons CORPORATE ENTITIES, TOTAL Limited companies Cooperative societies Associations, institutions, etc.

Housing companies Other legal persons ALL TAXPAYERS, TOTAL

% of total tax amount 2014 87.2 57.7 16.4 2.2 3.0

Taxes total 2 million 29,895 19,794 5,630 746 1,021

2.7

921

5.0 0.2 12.8 11.4 0.6 0.5 0.0 0.4 100.0

1,703 81 4,391 3,896 189 158 11 136 34,286

Wage earners Pensioners

57.7 % 16.4 %

Farmers and forestry taxpayers 2.2 % 3.0 % Business and self-employed Main partners of limited companies, active partners of partnership 2.7 % companies Other individuals Estates of deceased persons Corporate entities, total

5.0 % 0.2 % 12.8 %

B R I E F S TAT I S T I C S 11

STATE INCOME TAX AND ITS BREAKDOWN BY TAXPAYER CATEGORY 2014

Taxpayer category INDIVIDUALS, TOTAL Wage earners Pensioners Farmers and forestry taxpayers Business and self-employed Main partners of limited companies, active partners of partnership companies Other individuals Estates of deceased persons CORPORATE ENTITIES, TOTAL 1) Limited companies Cooperative societies Associations, institutions, etc.

Housing companies Other legal persons ALL TAXPAYERS, TOTAL

% of total state tax 2014 75.1 46.9 11.3 4.0 3.6

State income tax 2014 2 million 8,149 5,087 1,228 436 387

4.3

461

4.4 0.7 24.9 22.1 1.1 0.9 0.1 0.8 100.0

472 78 2,696 2,393 116 97 7 84 10,845

1) The part of corporate income tax going to the state.

Wage earners Pensioners

MUNICIPAL INCOME TAX AND ITS BREAKDOWN BY TAXPAYER CATEGORY 2014 % of total municipal income tax Taxpayer category 2014 INDIVIDUALS, TOTAL 92.1 Wage earners 62.0 Pensioners 18.9 Farmers and forestry taxpayers 1.3 Business and self-employed 2.8 Main partners of limited companies, active partners of 2.0 partnership companies Other individuals 5.2 Estates of deceased persons 0.0 CORPORATE ENTITIES, TOTAL 1) 7.9 Limited companies 7.0 Cooperative societies 0.3 Associations, institutions, etc.

0.3

Municipal tax 2014 2 million 18,332 12,346 3,753 253 549 395 1,034 2 1,571 1,394 68 56

Housing companies

0.0

4

Other legal persons ALL TAXPAYERS, TOTAL

0.2 100.0

49 19,903

1) The part of corporate income tax going to the state

46.9 % 11.3 %

Wage earners Pensioners

62.0 % 18.9 %

Farmers and forestry taxpayers 4.0 % 3.6 % Business and self-employed

Farmers and forestry taxpayers 1.3 % 2.8 % Business and self-employed

Main partners of limited companies, active partners of partnership 4.3 % companies

Main partners of limited companies, active partners of partnership 2.0 % companies

Other individuals Estates of deceased persons

Other individuals Estates of deceased persons

5.2 %

Corporate entities, total

7.9 %

Corporate entities, total 1 2 F I N N I S H TA X A D M I N I S T R AT I O N

4.4 % 0.7 % 24.9 %

0.0 %

B R I E F S TAT I S T I C S 13

DIRECT TAXES AND TAX-LIKE CHARGES IMPOSED ON THE BASIS OF INCOME 2000–2014

Vuosi 2000 2001 2002 2003 2004 2005 2006 1) 2007 2008 2009 2010 2011 2012 2013 2) 2014

TAX ARREARS BY TAX TYPE, 2013–2015

Income tax and state portion of corporate income tax € million

Municipal tax and municipal portion of corporate income tax € million

Church tax and church portion of corporate income tax € million

Health insurance contribution € million

Total € million

13,312 11,214 11,605 11,795 12,100 12,421 12,984 14,047 12,346 9,504 9,931 10,376 10,358 11,523 11,389

13,155 12,915 12,553 12,728 13,023 13,655 14,545 15,800 16,345 16,497 17,152 17,977 18,364 19,066 19,906

766 767 790 805 821 849 896 953 964 957 974 992 1,003 1,026 1,050

1,066 1,062 1,006 966 984 1,019 1,492 1,539 1,542 1,610 1,980 1,714 1,799 1,847 1,973

28,299 25,958 25,954 26,294 26,928 27,944 29,917 32,339 31,197 28,568 30,037 31,059 31,524 33,462 34,319

Income tax and prepayments VAT Employers' contributions and withheld tax Tax on inheritance and gifts Real property tax Other taxes TAX ARREARS, TOTAL

2013 € million

2014 € million

2015 € million

1,438 1,482

1,579 1,478

1,884 1,487

728

722

706

27 22 33 3,730

25 24 38 3,866

25 31 39 4,172

Tax arrears, Billion € 6.0

5.0

4.0

3.0

2.0

1.0

0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

1) Wealth tax is not included since 2006.

2) Public broadcasting tax in force since January 2013.

1 4 F I N N I S H TA X A D M I N I S T R AT I O N

Tax arrears, Billion € B R I E F S TAT I S T I C S 15

TAXES DEBITED ON THE BASIS OF AUDITS

BY THE TAX ADMINISTRATION 2013–2015

2013 € million

2014 € million

2015 € million

428 54 28 510

331 38 36 405

372 41 31 444

Income taxes VAT Withheld taxes TOTAL

INCOMES OF INDIVIDUALS IN 2014 STATE TAXATION

Type of income EARNED INCOME Employment income Pension income Unemployment benefits Maternity and social benefits Child home care allowance

Total income € million 122,711 81,401 28,870 4,703 1,380 388

Number of earners 4,575,662 2,819,677 1,617,256 668,971 312,497 136,001

Average income 2 26,818 28,869 17,851 7,030 4,415 2,852

10,864 9,072 4,237 1,512 3,926

2,682,388 1,489,954 383,709 293,069 934,835

4,050 6,089 11,041 5,160 4,200

133,575 131,783

4,726,920 4,687,796

28,258 28,112

1,025 2,931

90,953 132,897

11,267 22,057

1,230

108,928

11,287

CAPITAL INCOME Taxable capital income Capital gains Rental income Dividend income* 450

TOTAL INCOME of which taxable

400 350

Enterprise and partnership incomes Agricultural income Business income Income from general and limited partnerships

300 250 200 150 100 50 0 € million

2013

Income taxes

2014

VAT

1 6 F I N N I S H TA X A D M I N I S T R AT I O N

2015

Withheld taxes

* Contains dividends treated both as capital income and earned income + the tax-exempt parts of dividends.

B R I E F S TAT I S T I C S 17

DIRECT TAXES AS PERCENTAGES OF TAXABLE INCOME, 2014

Taxpayer category Wage earners Pensioners Farmers and forestry taxpayers Business operators and the self employed Main partners of limited companies, active partners of partnership companies Other individuals Estates of deceased persons INDIVIDUALS TOTAL

INCOME EARNERS, TAXABLE INCOME AND TAXES BY CLASS, 2014

State income taxes 6.0 4.3 15.3

Other direct taxes 17.5 15.4 10.9

Direct taxes total 23.5 19.7 26.2

10.8

17.6

28.4

14.8

14.8

29.6

5.1 27.6 6.2

13.3 1.0 16.5

18.3 28.6 22.7

1 8 F I N N I S H TA X A D M I N I S T R AT I O N

Taxable income 2

Number of income earners

Income earners % distribution

Taxable income % distribution

Taxes % of income

1–4,999 5,000–9,999 10,000–14,999 15,000–19,999 20,000–24,999 25,000–34,999 35,000–54,999 55,000–74,999 75,000–99,999 100,000–149,999 150,000–299,999 300,000– TOTAL

477,828 461,552 586,069 520,770 466,378 893,722 860,081 246,908 95,847 49,607 19,107 4,703 4,682,572

10.2 9.9 12.5 11.1 10.0 19.1 18.4 5.3 2.0 1.1 0.4 0.1 100

0.6 2.9 5.6 6.9 8.0 20.2 28.0 11.8 6.2 4.5 2.8 2.6 100

4.3 7.4 8.6 14.0 17.1 19.2 24.0 29.0 32.3 35.9 38.6 36.0 22.4

B R I E F S TAT I S T I C S 19

IMPORTANT TAX DEDUCTIONS, 2012–2014 Deduction State and municipal taxation TOTAL EXPENSES FOR THE PRODUCTION OF INCOME Expenses for the production of income, 2 620 Deduction of commuting expenses Trade union fees and unemployment insurance premiums deducted Deduction for pension insurance State taxation Pension allowance Home loan interest Student loan interest Municipal taxation Basic allowance Disabled person's allowance Student grant allowance Earned income allowance Pension allowance Tax credits Credit for the deficit in capital income For home loan interest For first-time homebuyers' loan interest Earned income credit Disabled persons' tax credit Tax credit for domestic costs

2 0 F I N N I S H TA X A D M I N I S T R AT I O N

2012 2 million

2013 2 million

4,120

4,178

1,676 1,545

1,666 1,580

619

624

5,073

5,087

11,270 1,424 39

12,575 1,046 30

2,763 66 181 6,433 5,685

2,761 64 184 6,344 5,977

418 318 67 1,972 72 302

293 217 42 1,972 72 325

2014 1,000 Average 2 million persons Deduction 2 State and municipal taxation TOTAL EXPENSES FOR THE 4,210 2,939 1,433 PRODUCTION OF INCOME Expenses for the production of income, 2 620 1,572 2,617 601 Deduction of commuting expenses 2,140 852 2,511 Trade union fees and unemployment 644 2,008 321 insurance premiums deducted Deduction for pension insurance 4,995 2,546 1,962 State taxation Pension allowance 12,687 1,511 8,395 Home loan interest 1,063 1,261 843 Student loan interest 28 361 78 Municipal taxation Basic allowance 2,915 1,960 1,487 Disabled person's allowance 61 183 333 Student grant allowance 192 179 1,073 Earned income allowance 6,258 2,550 2,454 Pension allowance 6,077 1,217 4,992 Tax credits Credit for the deficit in capital income 269 1,496 180 For home loan interest 199 1,272 156 For first-time homebuyers' loan interest 37 170 219 Earned income credit 2,065 2,594 796 Disabled persons' tax credit 72 688 105 Tax credit for domestic costs 359 381 942

B R I E F S TAT I S T I C S 21

MAXIMUM DEDUCTIONS IN STATE AND MUNICIPAL TAXATION 2013–2016

INCOME TAX SCALE FOR 2016

2013 2014 2015 2016 2 2 2 2 Deductions and allowances on earned income, both in state and municipal taxation Discretionary allowance for 1,400 1,400 1,400 1,400 circumstantial incapacity to pay taxes Standard deduction for 620 620 620 620 work-related expenses Deduction for temporary quarters 3,000 3,000 3,000 3,000 Deduction of commuting expenses 7,000 7,000 7,000 7,000 Taxpayer's own liability for deduction 600 600 750 750 of commuting expenses Deductions from capital income in state and municipal taxation Voluntary pension insurance premiums 5,000 5,000 5,000 5,000 Deductions and allowances granted in state taxation Pension allowance 11,660 12,630 12,540 12,230 Deduction granted to sailors 6,650 6,650 6,650 7,000 Deductions and allowances granted in municipal income taxation Disabled person's allowance 440 440 440 440 Seafarer's deduction 11,350 11,350 11,350 7,000 Deduction from earned income 3,570 3,570 3,570 3,570 Student grant allowance 2,600 2,600 2,600 2,600 Pension allowances 8,530 8,880 9,140 9,110 Basic allowance 2,850 2,880 2,970 3,020 Credits from tax in state taxation Maintenance credit 80 80 80 80 Disabled person's allowance 115 115 115 115 Credits from tax on earned income Earned income allowance 945 970 1,025 1,260 Credit for the deficit in capital income 1,400 1,400 1,400 1,400 Credit raise for one child 400 400 400 400 Credit raise for at least two children 800 800 800 800 Credit for domestic work 2,000 2,000 2,400 2,400 Own liability threshold 100 100 100 100

Scale

2 2 F I N N I S H TA X A D M I N I S T R AT I O N

Taxable income €

Basic tax €

Rate with brackets %

16,700 - 25,000 25,000 - 40,800 40,800 - 72,300 72,300 -

8.00 547.50 3,312.50 10,085.00

6.5 17.5 21.5 31.75

Income tax rate is 20 % for corporate taxpayers.

Tax rate for capital income 30.0 % and 34.0 % for incomes in excess of € 30,000.

Healthcare contribution payment is 1.30 % (for pensioners and recipients of social benefits it is 1.47 %).

Earned income contribution 0.82 %, (0.95 % for the self-employed).

The employee’s pension contribution 5.70 % (ages 18-52) or 7.20 % (ages 53-67) Employee’s unemployment insurance contribution is 1.15 %.

The public broadcasting tax rate is 0.68 and the amount is 70-143 euros.

Average rate of municipal tax is 19.86 %.

Average Church Tax rate is 1.43 %.

The child credit is € 50 for each minor child in the parent’s custody. It is given for four children at the most. For single parents the credit is € 100 per child, if no one else has custody of the child. If the parent’s net taxable earned income and capital income exceed 36,000 euros, the credit is reduced by 1 per cent of the amount that exceeds the limit.

B R I E F S TAT I S T I C S 23

BREAKDOWN OF WAGE EARNERS,

BY BASIC WITHHOLDING RATES, 2016

TAXES AS PERCENTAGES OF GDP BY COUNTRY, 2012–2014 Taxes, % of GDP

Basic rate 0–10 11–20 21–25 26–30 31–40 41–50 51– TOTAL

Number

%

1,104,785 992,042 528,105 302,730 145,445 13,146 146 3,086,399

35.8 32.1 17.1 9.8 4.7 0.4 0.0 100.0

BREAKDOWN OF PENSION RECIPIENTS,

BY BASIC WITHHOLDING RATES, 2016 Basic rate 0–5 6 –10 11–15 16–20 21–30 31–35 36–40 41–50 51– TOTAL

Number

%

363,258 171,228 201,335 234,395 404,246 56,219 17,489 6,761 1,184 1,456,115

24.9 11.8 13.8 16.1 27.8 3.9 1.2 0.5 0.1 100.0

Denmark France Belgium Italy Sweden Finland Austria Norway Luxembourg Germany Iceland United Kingdom Greece Spain Portugal Estonia Canada Ireland Switzerland United States

2012

2013

2014

48.0 45.3 45.3 44.4 44.3 44.1 43.2 42.2 37.8 37.6 37.2 35.2 33.8 32.9 32.5 32.5 30.7 28.3 28.2 24.3

48.6 45.0 44.6 42.6 42.8 44.0 42.5 40.8 39.3 36.7 35.5 32.9 33.5 32.6 33.4 31.8 30.6 28.3 27.1 25.4

50.9 45.2 44.7 43.6 42.7 43.9 43.0 39.1 37.8 36.1 38.7 32.6 35.9 33.2 34.4 32.9 30.8 29.9 26.6 26.0

Source: OECD

2 4 F I N N I S H TA X A D M I N I S T R AT I O N

B R I E F S TAT I S T I C S 25

TAX STRUCTURES

BY COUNTRY, 2014

MAXIMUM MARGINAL INCOME TAX RATES 2014–2015, BY COUNTRY

The contribution of different tax types to tax revenue % Income taxes Consumption taxes Denmark Norway United States Canada Switzerland Iceland United Kingdom Luxembourg Sweden Belgium Finland Italy Germany Spain Austria Greece France Estonia

65.2 43.3 48.2 47.6 46.1 46.5 35.0 34.8 34.7 35.9 35.0 32.6 30.5 29.0 29.4 24.1 23.1 23.0

Source: OECD

2 6 F I N N I S H TA X A D M I N I S T R AT I O N

32.9 28.5 17.1 24.1 22.1 31.2 33.1 28.5 28.7 23.9 32.8 26.9 27.9 28.5 27.3 41.2 24.4 41.6

Other taxes 1.9 28.2 34.7 28.3 31.8 22.3 31.9 36.7 36.6 40.2 32.2 40.5 41.6 42.5 43.3 34.7 52.5 35.4

Belgium Greece Sweden Denmark Finland Portugal United Kingdom Ireland Spain France Holland Canada Norway Japan Germany Australia Italy Iceland Austria United States Luxembourg Switzerland Estonia

Individuals 2014 45.3 46.0 56.9 55.6 49.1 50.3 45.0 48.0 52.0 54.0 50.1 49.5 39.0 50.6 47.5 46.5 47.8 44.4 50.0 46.3 43.6 36.1 20.6

Corporate 2015 33.0 26.0 22.0 23.5 20.0 28.0 20.0 12.5 28.0 34.4 25.0 15.0 27.0 23.9 15.8 30.0 27.5 20.0 25.0 35.0 22.5 8.5 20.0

Source: OECD

B R I E F S TAT I S T I C S 27

PROPORTIONS OF VAT, 2013 AND 2014, IN PERCENTAGES

VAT RATES IN THE EU, INTERNATIONAL COMPARISON, 2016 VAT rates on tax-free price %

Finland Sweden Norway Denmark Iceland Germany Belgium Austria Luxembourg France Switzerland United Kingdom Ireland Italy Spain Portugal Canada USA Estonia

Consumption taxes, % of taxes

Consumption taxes, % of GDP

2013 21.2 21.3 19.2 19.7 22.6 19.1 15.6 18.2 19.7 15.7 13.0 21.0 21.1 13.6 17.8 23.9 14.5 7.7 40.0

2013 9.4 9.1 7.8 9.6 8.0 7.0 7.0 7.7 7.8 7.0 3.5 6.9 5.9 5.8 5.8 8.0 4.4 2.0 12.6

Source: OECD

2 8 F I N N I S H TA X A D M I N I S T R AT I O N

2014 21.0 21.3 19.9 19.0 20.9 19.3 15.5 18.0 19.3 15.9 13.0 21.2 20.8 13.8 18.2 24.7 14.2 7.7 26.6

2014 9.2 9.1 7.8 9.7 8.1 7.0 6.9 7.8 7.3 7.2 3.5 6.9 6.2 6.0 6.0 8.5 4.4 2.0 8.5

Hungary Croatia Sweden Denmark Romania Finland Ireland Greece Portugal Poland Italy Slovenia Netherlands Belgium Spain Latvia Lithuania Czech Republic Bulgaria Austria France Slovakia Estonia United Kingdom Cyprus Germany Malta Luxembourg

General rates

Reduced rates

27 25 25 25 20 24 23 23 23 23 22 22 21 21 21 21 21 21 20 20 20 20 20 20 19 19 18 17

5/18 5/13 6/12 5/9 10/14 4.8/9/13.5 6/13 6/13 5/8 4/10 9.5 6 6/12 4/10 12 5/9 10/15 9 10/13 2.1/5.5/10 10 9 5 5/9 7 5/7 3/8/14

Source: European Commission

B R I E F S TAT I S T I C S 29

NOTES

3 0 F I N N I S H TA X A D M I N I S T R AT I O N

B R I E F S TAT I S T I C S 31

3 2 F I N N I S H TA X A D M I N I S T R AT I O N

B R I E F S TAT I S T I C S 33

WWW.TAX.FI

Finnish Tax Administration publication 352ev16 3 4 F I N N I S H TA X A D M I N I S T R AT I O N

B R I E F S TAT I S T I C S 35

Finnish Tax Administration PO Box 325, 00052 VERO tax.fi