// BRIEF STATISTICS 2014

Transcription

1 // BRIEF STATISTICS 2014

2 // 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. 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

3 // CONTENTS Income of public bodies, Expenses of public bodies, Finland s taxes, Net accruals 2012 and 2013 of tax revenue... 8 GDP, taxes, net taxes and central government debt, Different tax types as percentages of tax revenues, Taxes and tax-like charges, breakdown of taxes by taxpayer category, 2011 and State income tax and its breakdown by taxpayer category, 2011 and Municipal income tax and its breakdown by taxpayer category, 2011 and Direct taxes and tax-like charges imposed on the basis of income Tax refunds and back taxes, by taxpayer category, Tax arrears by tax type, Results of tax examinations, Income tax scale for Breakdown of wage earners, by basic withholding rates, Breakdown of pension recipients, by basic withholding rates, Incomes of individuals in 2012 state taxation Direct taxes as percentages of taxable income, 2011 and Income earners, taxable income and individuals taxes imposed, by classification, Maximum deductions, Important tax deductions, Taxes as percentages of GDP by country Tax structures by country Maximum marginal income tax rates , by country Proportions of VAT, 2011 and 2012, in percentages VAT rates in the EU, international comparison

4 // INCOME OF PUBLIC BODIES, 2012 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. Largest types of income, 2012 e 20,7 e 30,8 e 25,5 104,8 billion e 27,8 Direct income tax: earned, capital, corporate 29,4 % Taxes on production and on imports: VAT, energy, car tax, alcoholic beverages 26,5 % Social security contributions from employers and employees 24,3 % Other, including interest income 19,7 % Total 100 % Source: Statistics Finland,

5 // EXPENSES OF PUBLIC BODIES, 2012 e 6,0 e 3,8 e 9,3 e 12,2 109,0 billion e 47,7 e 14,3 e 15,7 Social security 43,7 % Medical care 14,4 % Public administration 13,1 % Education 11,2 % Expenses relating to the economy 8,6 % National security, defence, law and order 5,5 % Housing, utilities, recreation, culture and environment 3,5 % Total 100 % Source: Statistics Finland,

6 // FINLAND S TAXES, % of total million taxes State taxes and other similar fees ,8 Taxes levied on the basis of income and capital ,5 Taxes on income ,6 Inheritance and gift tax 509 0,6 Tax withheld at source from interest income 237 0,3 Taxes on goods and services ,6 Value added tax ,7 Tax on insurance premiums 660 0,8 Pharmacy fees 144 0,2 Excise duty ,4 Excise duty on tobacco 763 0,9 Excise duty on alcoholic beverages ,6 Excise duty on soft drinks 197 0,2 Excise duty on fuels ,6 Environmental tax on beverage bottles and 15 0,0 cans Other taxes ,1 Transfer tax 586 0,7 Car tax ,2 Tax on lottery prizes 211 0,2 Tax on certain vehicles 758 0,9 Tax on waste 56 0,1 Tax on rails 16 0,0 Other tax-like charges ,2 Seafarers welfare and rescue levy 1) 1 0,0 State share of lottery profits and the profits of the 901 1,1 Slot Machine Association Forest management fees, hunting and fishing 23 0,0 licences Penalty interests, other sanctions and tax increases 75 0,1 1) Collected in the shipping sector.

7 % of total million taxes Oil waste duty 4 0,0 Tax revenue from outside the state budget 85 0,1 Oil damage levy 24 0,0 Fire insurance duty 10 0,0 Strategic stockpile fee 44 0,1 Nuclear energy research fee 7 0,0 Municipal taxes ,6 Municipal tax ,1 Tax on dogs 1 0,0 Real property tax ,5 Other taxes 1 0,0 Insurance and social security contributions to the ,0 Social Insurance Institution National pension contributions ,1 Employers national pension schemes 0 0,0 Employers national health insurance ,9 contributions For employment pension schemes ,8 Employees ,1 Employers ,6 For unemployment schemes ,5 Employees 466 0,5 Employers ,9 Taxes and levies paid forward to the EU 185 0,2 Taxes paid to church 991 1,2 Church tax of corporate entities 97 0,1 Church tax of individuals 894 1,0 Taxes total ,0 Source: Statistics Finland 7

8 // NET ACCRUALS 2012 AND 2013 OF TAX REVENUE % million million change Income tax; individuals , ,9 4,0 Income tax; corporate taxpayers 4 210, ,4 13,3 VAT , ,9 7,9 Social security contributions 1 656, ,2-2,5 Real estate tax 1 277, ,4 5,9 Other taxes 3 020, ,7 7,8 Totals , ,5 5,9 Income tax; 52,5 % individuals VAT 26,6 % Income tax; 9,1 % corporate taxpayers Other taxes 6,2 % Social security 3,1 % contributions Real estate tax 2,6 % Totals 100 % 8

9 // GDP, TAXES, NET TAXES AND CENTRAL GOVERNMENT DEBT, GDP Taxes 1) Net taxes 2) Central government debt 3) Year million % % % ,7 14,8 62, ,0 18,5 66, ,4 20,7 65, ,3 22,3 59, ,9 22,1 55, ,2 25,4 48, ,8 23,3 44, ,7 22,7 41, ,1 21,6 43, ,5 21,1 41, ,9 21,4 38, ,8 21,9 35, ,0 22,2 31, ,9 21,5 29, ,8 17,8 37, ,5 17, ,7 18, * ,1 18,3 43,6 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. 9

10 // DIFFERENT TAX TYPES AS PERCENTAGES OF TAX REVENUES, Public sector tax revenue Income and property tax 1) Social security contr. 2) Consumption taxes etc. Year million % % % ,5 26,9 33, ,3 25,7 33, ,5 25,0 34, ,1 25,2 33, ,6 25,5 33, ,7 23,6 31, ,3 25,2 32, ,8 24,9 33, ,0 25,2 34, ,8 25,3 34, ,6 25,9 34, ,8 25,9 34, ,8 25,7 33, ,2 26,1 33, ,3 27,7 35, ,9 27,1 35, ,2 26,7 36, ,1 27,6 35,2 Source: Statistics Finland 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. 10

11 // TAXES AND TAX-LIKE CHARGES, BREAKDOWN OF TAXES BY TAXPAYER CATEGORY, 2011 AND 2012 Wage earners 59 % Corporate entities, total 15 % Pensioners 13 % Business and self-employed and farmers Other individuals 9 % 4 % % of total tax amount Taxes total Taxpayer category million Individuals, total 84,5 85, Wage earners 59,0 59, Pensioners 12,2 12, Farmers and forestry taxpayers 4,8 4, Business and self-employed 4,6 4, Other individuals 3,6 3, Estates of deceased persons 0,3 0,3 101 Corporate entities, total 15,5 14, Limited companies 14,5 13, Cooperative societies 0,3 0,3 97 Associations, institutions, etc. 0,1 0,2 62 Housing companies - 0,0 10 Other legal persons 0,5 0,4 129 All taxpayers, total

12 // STATE INCOME TAX AND ITS BREAKDOWN BY TAXPAYER CATEGORY, 2011 AND 2012 Wage earners 46 % Corporate entities, total 31 % Pensioners 11 % Business and self-employed and farmers 7 % Other individuals 4 % % of total state tax State income tax Taxpayer category million Individuals, total 69,9 68, Wage earners 47,4 46, Pensioners 6,6 7,1 731 Farmers and forestry taxpayers 6,3 6,0 622 Business and self-employed 5,1 5,2 533 Other individuals 3,6 3,5 356 Estates of deceased persons 1,0 0,9 96 Corporate entities, total 1) 30,1 31, Limited companies 28,3 29, Cooperative societies 0,6 0,7 67 Associations, institutions, etc. 0,3 0,4 42 Housing companies 0,1 0,1 7 Other legal persons 0,8 0,8 79 All taxpayers, total , ) The part of corporate income tax going to the state. 12

13 // MUNICIPAL INCOME TAX AND ITS BREAKDOWN BY TAXPAYER CATEGORY, 2011 AND 2012 Wage earners 65 % Corporate entities, total 16 % Business and self-employed and farmers 8 % Pensioners 7 % Other individuals 4 % Municipal income tax % of total municipal income tax Taxpayer category million Individuals, total 91,4 92, Wage earners 64,0 64, Pensioners 15,3 15, Farmers and forestry taxpayers 4,1 4,1 745 Business and self-employed 4,4 4,4 813 Other individuals 3,6 3,8 698 Estates of deceased persons 0,0 0,0 5 Corporate entities, total 1) 8,6 7, Limited companies 8,0 6, Cooperative societies 0,2 0,1 27 Associations, institutions, etc. 0,1 0,1 19 Housing companies 0,0 0,0 3 Other legal persons 0,3 0,2 44 All taxpayers, total 100,0 100, ) The part of corporate income tax going to municipal recipients. 13

14 // DIRECT TAXES AND TAX-LIKE CHARGES IMPOSED ON THE BASIS OF INCOME Municipal tax and municipal portion of corporate Income tax and Health state portion insurance of corporate contriincome tax income tax income tax bution Total Year million million million million million ) ) Wealth tax is not included since Church tax and church portion of corporate 14

15 // TAX REFUNDS AND BACK TAXES, BY TAXPAYER CATEGORY, 2012 Quantities of refund recipients Quantities Tax of payers of refunds back taxes Back taxes total million Quantities million Individuals and estates, total Wage earners Farmers and forestry taxpayers Business and self-employed Pensioners Other individuals Estates of deceased persons Corporate entities total Limited companies Cooperative societies Associations, institutions, etc. Housing companies Other corporate entities Taxpayers total

16 // TAX ARREARS BY TAX TYPE, million million million Income tax and prepayements VAT Employers contributions and withheld tax Tax on inheritance and gifts Real property tax Other taxes Tax arrears, total ,0 5,0 4,0 3,0 2,0 1,0 0, Tax debts transfered for enforcement, Billion Tax arrears, Billion

17 // RESULTS OF TAX EXAMINATIONS, million million million Direct taxes Indirect taxes Withheld taxes Total million Direct taxes Indirect taxes Withheld taxes

18 // INCOME TAX SCALE FOR 2014 Scale Rate within Basic tax brackets Taxable income % ,00 6, ,00 17, ,00 21, ,50 29, ,00 31,8 - For corporate taxpayers, income tax rate is 20 %. - Capital-income tax rate is 30,0 %. If the taxpayer receives more than 40,000 in capital income, the tax rate is 32,0 %. - Basic health insurance contribution 1,32 %, (for pensioners and social benefit recipients 1,49 %). - Earned income contribution 0,84 %, (0,97 % for the self-employed). - The employee s pension contribution is 5,55 % or 7,05 % and the unemployment insurance premium 0,5 %, all withheld on paid wages. - Average rate of municipal tax for 2014 is 19,74 %. - Average Church Tax rate is 1,37 %. 18

19 // BREAKDOWN OF WAGE EARNERS, BY BASIC WITHHOLDING RATES, 2014 Basic rate Quantities % , , , , , , ,0 Total ,0 // BREAKDOWN OF PENSION RECIPIENTS, BY BASIC WITHHOLDING RATES, 2014 Basic rate Quantities % , , , , , , , , ,1 Total ,0 19

20 // INCOMES OF INDIVIDUALS IN 2012 STATE TAXATION Type of income Total income million Number of earners Average income Earned income Employment income Pension income Maternity and social benefits Unemployment benefits Child home care allowance Capital icome Taxable capital income Dividend income Capital gains Rental income Other capital income Total income of which taxable Enterprise and partnership incomes Agricultural income Business income Income from general and limited partnerships

21 // DIRECT TAXES AS PERCENTAGES OF TAXABLE INCOME, 2011 AND 2012 State income taxes Other direct taxes Direct taxes total Taxpayer category Wage earners 6,0 5,7 16,4 16,5 22,4 22,2 Pensioners 3,2 3,2 14,4 14,5 17,6 17,8 Farmers and 10,0 9,8 13,2 13,7 23,2 23,5 forestry taxpayers Business operators 9,3 9,2 16,1 16,1 25,4 25,3 and the self-employed Individuals total 6,0 5,7 15,7 15,8 21,7 21,5 21

22 // INCOME EARNERS, TAXABLE INCOME AND INDIVIDUALS TAXES IMPOSED, BY CLASSIFICATION, 2012 Taxable income Income Income earner earners % quantities distribution Taxable income % distribution Taxes % of income ,4 0,6 4, ,7 3,2 5, ,3 6,1 7, ,2 7,1 13, ,0 8,3 16, ,3 21,1 18, ,8 28,0 23, ,9 11,3 28, ,9 5,8 32, ,0 4,2 35, ,4 2,5 37, ,1 1,8 35,8 Total ,5 22

23 // MAXIMUM DEDUCTIONS, Deductions and allowances on earned income, both in state and municipal taxation Discretionary allowance for circumstantial incapacity to pay taxes Standard deduction for work related expenses Deduction for temporary quarters Deduction for commuting expenses Taxpayer`s own liability Deductions and allowances granted on capital income Voluntary pension insurance premiums Deductions and allowances granted in state taxation Pension allowance Deduction granted to sailors Deductions and allowances granted in municipal taxation Disabled person s allowance Deduction granted to sailors Deduction from earned income Student grant allowance Pension allowances Basic allowance Credits from tax in state taxation Maintenance credit Disabled person s allowance Credits from tax on earned income Earned income allowance Credit for the deficit in capital income One child At least two children Credit for domestic work

24 // IMPORTANT TAX DEDUCTIONS Deduction million million million State and municipal taxation Standard deduction of work-related expenses Deduction of commuting expenses Membership fees in labour market organisations Home loan interest Student loan interest Deduction for pension insurance State taxation Pension allowance Municipal taxation Basic allowance Disabled person's allowance Student grant allowance Earned income allowance Pension allowance Credit for the deficit in capital income For home loan interest For first-time homebuyers' loan interest Tax credits Earned income credit Tax credit for domestic costs Disabled persons' credit

25 Average Deduction million persons State and municipal taxation Standard deduction of work-related expenses Deduction of commuting expenses Membership fees in labour market organisations Home loan interest Student loan interest Deduction for pension insurance State taxation Pension allowance Municipal taxation Basic allowance Disabled person's allowance Student grant allowance Earned income allowance Pension allowance Credit for the deficit in capital income For home loan interest For first-time homebuyer's loan interest Tax credits Earned income credit in state taxation Tax credit for domestic costs Disabled persons' credit

26 // TAXES AS PERCENTAGES OF GDP BY COUNTRY Taxes, % of GDP Denmark 47,6 48,1 48,0 France 42,9 44,2 45,3 Belgium 43,5 44,0 45,3 Italy 42,9 42,9 44,4 Sweden 45,5 44,5 44,3 Finland 42,5 43,4 44,1 Austria 42,0 42,1 43,2 Norway 42,9 43,2 42,2 Luxembourg 37,1 37,1 37,8 Germany 36,1 37,1 37,6 Iceland 35,2 36,0 37,2 United Kingdom 34,9 35,5 35,2 Greece 30,9 31,2 33,8 Spain 32,3 31,6 32,9 Portugal 31,3-32,5 Estonia ,5 Canada 31,0 31,0 30,7 Ireland 27,6-28,3 Switzerland 28,1 28,5 28,2 United States 24,8 25,1 24,3 Source: OECD -) No data available. 26

27 // TAX STRUCTURES BY COUNTRY Source: OECD The contribution of different tax types to tax revenue, % Income taxes Consumption taxes Other taxes Denmark 61,7 31,6 6,7 Norway 48,0 26,4 25,6 United States 47,7 17,9 34,4 Canada 47,2 24,4 28,4 Switzerland 46,1 21,7 32,2 Iceland 45,8 34,8 19,4 United Kingdom 35,7 32,8 31,5 Luxembourg 35,5 28,0 36,5 Sweden 34,9 28,8 36,3 Belgium 34,7 24,9 40,4 Finland 34,4 32,8 32,8 Italy 32,8 25,5 41,7 Germany 30,4 28,4 41,2 Spain 30,1 26,6 43,3 Austria 29,1 27,5 43,4 Greece 24,7 37,3 38,0 France 23,6 24,4 52,0 Estonia 20,9 42,2 36,9 27

28 // MAXIMUM MARGINAL INCOME TAX RATES , BY COUNTRY Individuals 2012 Corporate 2013 Belgium 59,4 34,0 Greece 57,4 26,0 Sweden 56,6 22,0 Denmark 56,1 25,0 Finland 55,5 24,5 Portugal 54,6 31,5 United Kingdom 52,0 23,0 Ireland 52,0 12,5 Spain 52,0 30,0 France 51,2 34,4 Holland 49,3 25,0 Canada 48,0 26,1 Norway 47,8 28,0 Japan 47,8 37,0 Germany 47,5 30,2 Australia 47,5 30,0 Italy 47,3 27,5 Iceland 45,3 20,0 Austria 43,7 25,0 United States 43,2 39,1 Luxembourg 42,7 29,2 Switzerland 41,8 21,1 Estonia 23,2 21,0 Source: OECD 28

29 // PROPORTIONS OF VAT, 2011 AND 2012, IN PERCENTAGES GENERAL CONSUMPTION TAXES, BY COUNTRY Consumption taxes, % of taxes Consumption taxes, % of GDP Finland 20,6 20,7 8,9 9,1 Sweden 21,5 21,2 9,6 9,4 Norway 18,0 18,3 7,8 7,7 Denmark 20,7 20,7 9,9 9,9 Iceland 21,6 22,3 7,8 8,3 Germany 19,8 19,4 7,3 7,3 Belgium 16,1 15,9 7,1 7,2 Austria 18,6 18,6 7,8 8,0 Luxembourg 17,0 17,9 6,3 6,8 France 16,4 16,0 7,3 7,2 Switzerland 12,7 12,4 3,6 3,5 United Kingdom 20,6 20,9 7,3 7,4 Ireland 22,4 21,6 6,2 6,1 Italy 14,5 13,7 6,2 6,1 Spain 16,7 16,6 5,3 5,4 Portugal - 26,1-8,5 Canada 14,3 14,6 4,4 4,5 USA 8,1 7,8 2,0 1,9 Japan 16,3-2,7 2,7 Source: OECD -) Information not available. 29

30 // VAT RATES IN THE EU, INTERNATIONAL COMPARISON 2014 VAT rates on tax-free price % General rates Reduced rates Hungary 27 5/18 Sweden 25 6/12 Denmark 25 - Romania 24 5/9 Finland 24 10/14 Ireland 23 9/13,5 Greece 23 6,5/13 Portugal 23 6/13 Poland 23 5/8 Italy Holland 21 6 Belgium 21 6/12 Spain Latvia Lithuania 21 5/9 Czech Republic Bulgaria 20 9 Austria France 20 5,5/10 Slovakia Estonia 20 9 United Kingdom 20 5 Cyprus 19 5/9 Germany 19 7 Malta 18 5/7 Luxemburg 15 6/12 Source: OECD 30

31 // NOTES 31

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35 TAX.FI Finnish Tax Administration publication 352e.14 35

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