The high income earner’s tax and excise tax have been tightened. In addition, Yel-payments have declined slightly, but at the same time social security payments and unemployment insurance contributions have risen.
Capital income tax for high income classes has risen to 34 per cent for capital income exceeding 30,000 euros. Income that is lower than that will be taxed normally by 30 per cent.
Solidarity tax earnings limit will fall from 90,000 euros to 72,300 euros in 2016. Two per cent of added tax must be paid only in the event that the taxable monthly income is approximately 5,800 euros. This change is valid for the years of 2016-2017. The maximum limit for earned income deductions will increase from 1,025 euros to 1,260 euros. Employers’ and workers’ unemployment insurance contributions will rise by 0.5 percentage points. The minimum charge for Yle tax will be increased from 51 euros to 70 euros. The minimum income limit will rise from 7,500 euros to 10,300 euros.
Fixed assets such as loss resulting from transfer of property can be reduced from other capital income in the future. This amendment concerns the taxation of natural persons and estates. In companies, capital loss from transfers will get deducted normally from the profits of the sale of the company’s assets during the financial year and from accumulated profit gained in the following five years.
55 per cent of 2016 mortgage loan interest payments is deductible. The maximum amount of the basic deduction in local government taxation will be increased from 2,970 euros to 3,020 euros.
You have to register in the Value Added Tax Register if the turnover for the financial year is 10,000 euros or more. In previous years, the limit was 8,500 euros. The turnover limit for lower limit rebate granted to companies with minimal operations will rise from 22,500 euros to 30,000 euros.
The interest-free payment period for inheritance and gift tax for generational relief situations will increase from five years to ten years. Transitional provision for investments in the Invested Unrestricted Equity Fund will expire. Capital investments made before the year 2014 can be returned from the company still in the year 2015 in accordance with old regulations. Fixed term withholding tax of 35 per cent for foreign key personnel will be continued for the years of 2016-2019.