ARTICLE · 13 NOVEMBER 1995
New Budget Laws for 1996 Concerning Taxation
FinlandAccounting and Audit
Tax Rates Rising
The corporate tax rate in Finland will be increased from 25 % to 28 % from January 1, 1996. Also the tax rate for capital income (interest income, dividend income, rental income etc.) will be increased from 25 % to 28 %. For foreign investors it is worth notifying that withholding taxes on dividends and royalties will also be increased to 28 % if not lowered in tax treaties or abolished between EU countries (dividends). Progressive tax rates for earned income, for example salaries, will not be changed drastically. The government promises that no further increases will occur during this parliamentary term.
Merger Loss Abolition
Abolition of tax deductible merger loss is very likely to be in force January 1, 1996. A government bill concerning that issue was given November 3,1995. After the change merger of companies will be treated neutrally in taxation. Merger loss is not tax deductible and merger gains are not taxable income. Together with other changes
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