Tag: Income tax
IS: The police asked to investigate the income tax payments of the member of the European parliament of the Fundamental Finns
The police spokesperson refused to confirm to Yle whether the suspect in the investigation is MEP Teuvo Hakkarainen.
Eva: The average Finnish taxpayer will pay more than 550 euros less in taxes in 2024
The person also spends 600 euros per year for one domestic trip. Eva said in December that the total tax rate for such a wage earner in 2024 is 37.5 percent, which corresponds to 1,313 euros per month. More than two-thirds, or 908 euros, of the tax burden comes from income tax and 404 euros…
Soste: Expenditure cuts to increase the number of low-income earners by tens of thousands
The growth is predicted to be most significant in Uusimaa, Finland’s most populous region. There, the number of people with low incomes increases by almost 13 percent from a year ago to 203,800. As a result of the fact that more and more people move into a lower income category, according to Sosten, there is…
HS: The Finnish government plans to cut income tax, especially for high income earners
It suggests that the income tax of high earners will decrease the most, both absolutely and relatively compared to this year, because the government plans to extend the so-called solidarity tax to a lower level than before. Helsingin Sanomat reported on Thursday that the annual tax burden of those earning 12,000 euros per month is…
Experts warn that the abolition of inheritance tax may increase the taxation of some inheritances
According to the Taxpayers’ Association, the person selling his inheritance could have to pay more tax if the inheritance tax were to be abolished and replaced by capital income tax.
Finland’s plan for the next four years: Eight daily changes
Income taxes will be reduced, while recipients of basic income support may have to work.
The limited effect of the tax credit for household expenses on the gray economy of companies
This is due to various errors in tax refund applications and fraudulent arrangements used to obtain refunds, which have caused the Finnish government to lose tax revenue, which can amount to 20-30 million euros. The report reveals that if the service production eligible for tax credit forms a significant part of the company’s annual turnover,…
New alliance will challenge the Danish government
The blue bloc duo Conservative and Liberal Alliance are now teaming up with the social liberal party Radikale to challenge the government to make reforms that the three parties believe are necessary. Although the parties only have 31 mandates together, the collaboration is interesting because it places Radikale in collaboration with two right-wing parties. During…
High tax wedge in Finland: Less than half of salary increases go into the workers’ pockets
According to the tax wedge calculator, a private sector employee with a median monthly salary of 3,520 euros in 2021 would receive less than half of a 100-euro salary increase after taxes and fees. The employee would get only 44-56 euros extra, while the employer would pay more than 120 euros for the same increase.…
Finnish startup community chief economist Youssef Zad suggests increasing tax incentives to attract skilled labor
According to the report, tax incentives affect the migration of certain groups, such as top innovators in the patent industry and other high-income individuals. Youssef ZadThe chief economist of the Finnish startup community stated that several studies have shown that high-income immigrants and top innovators react strongly to changes in income taxation and R&D tax…
Tax credits for housekeeping services do not help much against tax evasion
“A total of 55 percent of the respondents say that they would request an official invoice, even if it does not entitle them to tax relief,” says Ludwig Erhard ifo, head of the Center for Social Market Economics and Institutional Economics. Sarah Necker. “If policymakers want to use tax breaks to encourage consumers to request…
Marin: Politicians must be able to discuss economic policy coordination
“The root cause of inflation is the high price of energy, so we need to focus on two things in particular. We need to rapidly increase energy production to solve this supply problem. And another thing we need to discuss and find solutions for is energy pricing,” he said quoted saying from STT. He considered…
Saarikko: Finland may not be able to afford significant income tax reductions
“Now we need mutual trust.” Saarikko pointed out that the combination of substantial wage increases and income tax cuts would be dangerous, as it could further accelerate the rise in consumer prices. Juha MajanenOn Wednesday, the permanent state secretary of the Ministry of Finance defined moderate salary increases as increases in line with next year’s…
Trade lobby: The retail growth spurt is over – now uncertainty lies ahead
The turnover of the domestic retail trade will decrease by around 2.5 percent this year and even more in 2023, according to the forecast of the Finnish Trade Association. The trade advocacy group said that if Finland and the rest of Europe drift into recession, trade will shrink even more. According to the group’s preliminary…
The finance minister hints at tax cuts to compensate for rising prices
The decline in living standards will not make the campaign theme very popular in next spring’s parliamentary elections, which the parties of the current center-left coalition are well aware of. With prices rising as much as six per cent, wages just a couple of per cent this year and mortgage rates rising, the finance minister…
The good economic situation increased tax revenues in Finland in 2021
Markku HeikuraThe CEO of the Tax Administration said the increase was primarily due to the good economic situation and its positive impact on the income of both companies and individuals, as taxation as a whole did not increase from the previous year. “According to preliminary data, the economic situation in 2021 was very good despite…
750,000 taxpayers earned more than expected, leading to large tax increases
More than 750,000 Finnish taxpayers earned more than expected in 2021, leading many to a large income tax month at the end of the year. At the beginning of each year, taxpayers in Finland are obliged to estimate that they will receive a salary during the year. But a much higher tax rate will take…
Governments often respond to crises by raising taxes: ifo Study
Taxes are raised more often in the post-crisis years than in other years. These increases can be seen in particular in income tax, corporate tax and VAT. “Countries that have raised taxes since the crises have often seen their economic growth slow and income disparities widen,” Potrafke says. Growth slowed, especially after the tax increases…
APN Podcast: Taxing the Gig Economy
Application-based, on-demand companies like Wolt are shaping the relationship between employees and companies. This week, the Yle Points All Points North podcast sheds light on the statutory payments of gig employees under Finnish law. "It’s a very good way to work and earn an income, but you need to know the facts before you start…
The government is preparing a fourth supplementary budget to reduce net borrowing
The government has submitted to Parliament this year’s fourth draft supplementary budget, which aims to reduce the need for net borrowing by about EUR 2.2 billion. The draft proposal includes an increase in revenue of approximately EUR 1.9 billion and a cut in expenditure of EUR 249 million. According to the government, changes in the…
The tax will increase next year in ten municipalities
Ten municipalities will raise taxes in 2022, while six municipalities will reduce taxes. In total, preliminary figures show a municipal tax increase of DKK 122 million next year. But the government wants to reduce the state base tax so that the total tax for the citizens of the country “as a whole” does not increase.…
The tax in the municipalities is set to increase in 2022
Ten municipalities will raise taxes in 2022, while six municipalities will reduce taxes. In total, preliminary figures show a municipal tax increase of DKK 122 million next year. But the government wants to reduce the state base tax so that the total tax for the citizens of the country “as a whole” does not increase.…
NCP MP had € 100,000 in offshore service in 2014, denying the misconduct
Finnish Member of Parliament Elina Valtonen The opposition National Coalition Party (NCP) has acknowledged in a newspaper report that it held more than € 100,000 in a British bank account on the island of Jersey, widely regarded as a tax haven. Newspaper Helsingin Sanomat reported on Monday, he saw documents showing that Valtonen held –…
The finance minister hints that the government may lower income taxes
The Treasury minister Annika Saarikko (Cen) has suggested that the current coalition government could agree to reduce Finland’s income tax. The Minister’s comments followed an event organized by the Finnish Central Chamber of Commerce on Wednesday morning, in which a proposal was made that income tax should be reduced by two percentage points everywhere during…
Tax increases in industrialized countries often come immediately after an election: the ifo Institute
Potrafke adds: “Unpleasant politics is appropriate for the post-election period. Voters have short memories, and when it’s time to vote again, many of them barely remember the tax increase since the last election. It will be interesting to see what changes in German tax policy are expected after the 2021 federal election. “ Politicians know…
The Ministry of Finance publishes the draft budget
The Finnish Ministry of Finance has completed its proposal on government spending in 2022 before the negotiations between the coalition parties package. The final version is due to be agreed at the end of September, and several rounds of negotiations need to be concluded before then. The ministry’s proposal, released on Friday, includes increases in…