ARTICLE · 24 AUGUST 2005

Tax Reform 2005: Change of Generation

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The government has on the 19th of May given its bill on reforming the corporate and capital income taxation. The bill involved many changes, but the processing of the bill in parliament may still change the content of the reform.

FinlandTax

Mikko Alakare

Taru Vilppula

Contents

Tax Reform 2005 - what now?

The Main Content of Reform

Tax reform 2005 - what now?

Taxation of the party who hands over the business

- Personal capital gain – take into account that the taxation will tighten

Transfer the property this year, if you have owned it over 10 years

Transfer the property next year, if you have owned it less than 10 years

Transferor – If the transfer requires operations to be divided or expanding the ownership base before the transfer

- Prepare the transfer in advance and take advantage of the tax exemption of capital gains for the company

Incorporate the operations that will be sold

Make sure that the shares are part of the fixed assets

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