Expert knocks out proposal to harmonize dividend taxation – “Let’s talk about a total tax rate of more than 40%”


The Market Council is discussing Finnish dividend taxation, which has been criticized by both left-wing parties and economists. Under the current system, dividends received from unlisted companies are treated differently from those received from listed companies.

Leading Tax Expert of the Central Chamber of Commerce Emmiliina Kujanpää states that the purpose of the current system is to prevent double taxation. The taxes paid to the recipient of the dividend also take into account the tax paid by the company.

“Corporate taxation, capital income taxation and dividend taxes are a combination. It is difficult to address one part without changing the others. ”

“It’s true that our dividend tax model is a uniquely exceptionally complex model. When scholars have criticized the model, the reason is not that the tax level is too low, but the problems caused by the complexity, such as behavioral effects.”

Chief Economist of SAK Ilkka Kaukoranta believes that the tax system can be made simpler. According to Kaukoranta, it would be worthwhile to approximate the tax treatment of unlisted and listed companies, as suggested by the tax working group that sat in the previous parliamentary term.

In practice, this would increase the tax on unlisted companies. As a result, the issue is politically difficult.

Aktia Bank tax expert Veli-Matti Lindgren considers the harmonization of dividend taxation to be an unsustainable idea, as the company already pays tax on its profits.

“If a higher tax is paid on a dividend, then we are talking about a total tax rate of more than forty percent. One may ask whether it is attractive. ”

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Source: Arvopaperi by www.arvopaperi.fi.

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