Brief statistics 2014 by Verohallinto

BRIEF STATISTICS 2014

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.

CONTENTS

Income of public bodies, 2012................................................................................... 4 Expenses of public bodies, 2012................................................................................ 5 Finland’s taxes, 2012............................................................................................. 6–7 Net accruals 2012 and 2013 of tax revenue............................................................... 8 GDP, taxes, net taxes and central government debt, 1995–2012................................ 9 Different tax types as percentages of tax revenues, 1995–2012................................ 10 Taxes and tax-like charges, breakdown of taxes by taxpayer category, 2011 and 2012....... 11 State income tax and its breakdown by taxpayer category, 2011 and 2012............... 12 Municipal income tax and its breakdown by taxpayer category, 2011 and 2012........ 13 Direct taxes and tax-like charges imposed on the basis of income 1995 - 2012 ........ 14 Tax refunds and back taxes, by taxpayer category, 2012.......................................... 15 Tax arrears by tax type, 2011–2013......................................................................... 16 Results of tax examinations, 2011–2013.................................................................. 17 Income tax scale for 2014........................................................................................ 18 Breakdown of wage earners, by basic withholding rates, 2014.................................. 19 Breakdown of pension recipients, by basic withholding rates, 2014.......................... 19 Incomes of individuals in 2012 state taxation............................................................ 20 Direct taxes as percentages of taxable income, 2011 and 2012................................ 21 Income earners, taxable income and individuals taxes imposed, by classification, 2012 ............................................................................................. 22 Maximum deductions, 2011–2014 .......................................................................... 23 Important tax deductions, 2009–2012 .............................................................. 24–25 Taxes as percentages of GDP by country ................................................................. 26 Tax structures by country......................................................................................... 27 Maximum marginal income tax rates 2012–2013, by country................................... 28 Proportions of VAT, 2011 and 2012, in percentages................................................. 29 VAT rates in the EU, international comparison 2014................................................. 30

INCOME OF PUBLIC BODIES, 2012

Public finances is what is made up by the State of Finland, Finnish municipalities, the Provincial Government of Ă&#x2026;land Islands, employment pension and other social security institutions.

Largest types of income, 2012

e 20,7 e 30,8 â&#x201A;Ź104,8 billion e 25,5 e 27,8

Direct income tax: earned, capital, corporate Taxes on production and on imports: VAT, energy, car tax, alcoholic beverages Social security contributions from employers and employees Other, including interest income

29,4 %

Total

100 %

Source: Statistics Finland, 2012 4

26,5 % 24,3 % 19,7 %

EXPENSES OF PUBLIC BODIES, 2012

e 6,0 e 3,8 e 9,3 e 12,2

â&#x201A;Ź109,0 billion

e 47,7

e 14,3 e 15,7

Social security Medical care Public administration Education Expenses relating to the economy National security, defence, law and order Housing, utilities, recreation, culture and environment Total

43,7 % 14,4 % 13,1 % 11,2 % 8,6 % 5,5 % 3,5 % 100 %

Source: Statistics Finland, 2012 5

FINLAND´S TAXES, 2012

State taxes and other similar fees Taxes levied on the basis of income and capital Taxes on income Inheritance and gift tax Tax withheld at source from interest income Taxes on goods and services Value added tax Tax on insurance premiums Pharmacy fees Excise duty Excise duty on tobacco Excise duty on alcoholic beverages Excise duty on soft drinks Excise duty on fuels Environmental tax on beverage bottles and cans Other taxes Transfer tax Car tax Tax on lottery prizes Tax on certain vehicles Tax on waste Tax on rails Other tax-like charges Seafarers’ welfare and rescue levy 1) State share of lottery profits and the profits of the Slot Machine Association Forest management fees, hunting and fishing licences Penalty interests, other sanctions and tax increases 1) Collected in the shipping sector. 6

€ million

% of total taxes

40 110 11 542 10 796 509 237 18 509 17 705 660 144 6 337 763 1 393 197 3 969 15

46,8 13,5 12,6 0,6 0,3 21,6 20,7 0,8 0,2 7,4 0,9 1,6 0,2 4,6 0,0

2 633 586 1 006 211 758 56 16 1 004 1 901

3,1 0,7 1,2 0,2 0,9 0,1 0,0 1,2 0,0 1,1

0,0

0,1

€ million

% of total taxes

Oil waste duty Tax revenue from outside the state budget Oil damage levy Fire insurance duty Strategic stockpile fee Nuclear energy research fee Municipal taxes Municipal tax Tax on dogs Real property tax Other taxes Insurance and social security contributions to the Social Insurance Institution National pension contributions Employers’ national pension schemes Employers’ national health insurance contributions For employment pension schemes Employees’ Employers’ For unemployment schemes Employees’ Employers’ Taxes and levies paid forward to the EU Taxes paid to church Church tax of corporate entities

4 85 24 10 44 7 19 342 18 070 1 1 270 1 3 449

0,0 0,1 0,0 0,0 0,1 0,0 22,6 21,1 0,0 1,5 0,0 4,0

1 791 0 1 658

2,1 0,0 1,9

19 531 5 261 14 270 2 120 466 1 654 185 991 97

22,8 6,1 16,6 2,5 0,5 1,9 0,2 1,2 0,1

Church tax of individuals Taxes total

894 85 728

1,0 100,0

Source: Statistics Finland 7

NET ACCRUALS 2012 AND 2013 OF TAX REVENUE

2012 € million Income tax; individuals Income tax; corporate taxpayers VAT Social security contributions Real estate tax Other taxes Totals

26 600,6 4 210,4 12 996,6 1 656,1 1 277,6 3 020,9 49 762,2

2013 € million

% change

27 658,9 4 770,4 14 027,9 1 615,2 1 353,4 3 255,7 52 681,5

4,0 13,3 7,9 -2,5 5,9 7,8 5,9

Income tax; individuals VAT Income tax; corporate taxpayers Other taxes Social security contributions Real estate tax

52,5 %

Totals

100 %

26,6 % 9,1 % 6,2 % 3,1 % 2,6 %

GDP, TAXES, NET TAXES AND CENTRAL GOVERNMENT DEBT, 1995–2012

Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

GDP € million 96 064 99 131 107 380 116 631 122 321 132 195 139 288 143 646 145 531 152 266 157 429 165 765 179 830 185 670 172 318 178 724 188 679 192 541

Taxes 1) % 45,7 47,0 46,4 46,3 45,9 47,2 44,8 44,7 44,1 43,5 43,9 43,8 43,0 42,9 42,8 42,5 43,7 44,1

Net taxes 2) % 14,8 18,5 20,7 22,3 22,1 25,4 23,3 22,7 21,6 21,1 21,4 21,9 22,2 21,5 17,8 17,3 18,8 18,3

Central government debt 3) % 62,6 66,7 65,0 59,8 55,6 48,0 44,3 41,3 43,5 41,9 38,1 35,5 31,2 29,3 37,3 42 42 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.

DIFFERENT TAX TYPES AS PERCENTAGES OF TAX REVENUES, 1995–2012

Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Public sector tax revenue € million 43 855 46 639 49 780 53 951 56 166 62 415 62 335 64 187 64 187 66 191 69 120 72 615 77 269 79 648 73 835 75 968 82 416 84 878

Income and property tax 1) % 39,5 41,3 40,5 41,1 40,6 44,7 42,3 41,8 40,0 39,8 39,6 39,8 40,8 40,2 37,3 37,9 37,2 37,1

Social security contr. 2) % 26,9 25,7 25,0 25,2 25,5 23,6 25,2 24,9 25,2 25,3 25,9 25,9 25,7 26,1 27,7 27,1 26,7 27,6

Consumption taxes etc. % 33,6 33,0 34,5 33,8 33,9 31,7 32,5 33,3 34,9 34,8 34,6 34,4 33,5 33,6 35,0 35,0 36,1 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

TAXES AND TAX-LIKE CHARGES, BREAKDOWN OF TAXES BY TAXPAYER CATEGORY, 2011 AND 2012 Wage earners Corporate entities, total Pensioners Business and self-employed and farmers Other individuals

Taxpayer category Individuals, total Wage earners Pensioners Farmers and forestry taxpayers Business and self-employed Other individuals Estates of deceased persons Corporate entities, total Limited companies Cooperative societies Associations, institutions, etc. Housing companies Other legal persons All taxpayers, total

2011 84,5 59,0 12,2 4,8 4,6 3,6 0,3 15,5 14,5 0,3 0,1 0,5 100

% of total tax amount 2012 85,2 59,0 12,8 4,7 4,7 3,7 0,3 14,8 13,9 0,3 0,2 0,0 0,4 100

59 % 15 % 13 % 9% 4%

Taxes total 2012 million € 26 814 18 575 4 020 1 495 1 471 1 150 101 4 676 4 377 97 62 10 129 31 490 11

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%

Taxpayer category Individuals, total Wage earners Pensioners Farmers and forestry taxpayers Business and self-employed Other individuals Estates of deceased persons Corporate entities, total 1) Limited companies Cooperative societies Associations, institutions, etc. Housing companies Other legal persons All taxpayers, total

2011 69,9 47,4 6,6 6,3 5,1 3,6 1,0 30,1 28,3 0,6 0,3 0,1 0,8 100

% of total state tax

State income tax

2012

2012 million € 7 087 4 750 731 622 533 356 96 3 219 3 024 67 42 7 79 10 306

68,8 46,1 7,1 6,0 5,2 3,5 0,9 31,2 29,3 0,7 0,4 0,1 0,8 100,0

1) The part of corporate income tax going to the state. 12

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% % of total Municipal municipal income tax income tax Taxpayer category Individuals, total Wage earners Pensioners Farmers and forestry taxpayers Business and self-employed Other individuals Estates of deceased persons Corporate entities, total 1) Limited companies Cooperative societies Associations, institutions, etc. Housing companies Other legal persons All taxpayers, total

2011 91,4 64,0 15,3 4,1 4,4 3,6 0,0 8,6 8,0 0,2 0,1 0,0 0,3 100,0

2012 92,8 64,6 15,9 4,1 4,4 3,8 0,0 7,2 6,7 0,1 0,1 0,0 0,2 100,0

2012 million € 17 022 11 848 2 914 745 813 698 5 1 330 1 236 27 19 3 44 18 352

1) The part of corporate income tax going to municipal recipients. 13

DIRECT TAXES AND TAX-LIKE CHARGES IMPOSED ON THE BASIS OF INCOME 1995–2012 Municipal tax Income tax and and municipal portion of state portion corporate of corporate income tax income tax Year € million € million 1995 6 839 9 492 1996 7 624 10 038 1997 8 352 10 660 1998 9 437 11 159 1999 11 298 12 219 2000 13 312 13 155 2001 11 214 12 915 2002 11 605 12 553 2003 11 795 12 728 2004 12 100 13 023 2005 12 421 13 655 2006 1) 12 984 14 545 2007 14 047 15 800 2008 12 346 16 345 2009 9 504 16 497 2010 9 931 17 152 2011 10 376 17 977 2012 10 306 18 351

Church tax Health and church portion of insurance contricorporate bution income tax € million € million 619 1 440 654 1 444 697 1 311 722 1 141 730 1 076 766 1 066 767 1 062 790 1 006 805 966 821 984 849 1 019 896 1 492 953 1 539 964 1 542 957 1 610 974 1 980 992 1 714 1 002 1 797

Total € million 18 390 19 760 21 020 22 459 25 323 28 299 25 958 25 954 26 294 26 928 27 944 29 917 32 339 31 197 28 568 30 037 31 059 31 456

1) Wealth tax is not included since 2006.

TAX REFUNDS AND BACK TAXES, BY TAXPAYER CATEGORY, 2012

Quantities of refund recipients Individuals and estates, total 3 336 050 Wage earners 2 027 249 Farmers and forestry taxpayers 117 047 Business and self-employed 89 345 Pensioners 809 797 Other individuals 279 050 Estates of deceased persons 13 562 Corporate entities total 42 441 Limited companies 38 773 Cooperative societies 502 Associations, institutions, 1 974 etc. Housing companies 289 Other corporate entities 903 Taxpayers total 3 378 491

Quantities Tax of payers of refunds back taxes € million 2 285 1 670 131 153 204 120 8 422 386 7 15 1 13 2 707

Back taxes total

Quantities € million 740 952 1 048 358 178 454 58 606 134 69 373 220 144 075 74 86 291 141 24 429 26 45 037 389 39 409 348 434 2 2 346 4 896 1 952 787 330

4 31 1 437

TAX ARREARS BY TAX TYPE, 2011–2013 2011 2012 € million € million 31.12.2011 31.12.2012

Income tax and prepayements VAT Employers’ contributions and withheld tax Tax on inheritance and gifts Real property tax Other taxes Tax arrears, total

2013 € million 31.12.2013

1 499 1 537 794

1 547 1 618 840

1 438 1 482 728

18 16 35 3 898

24 20 35 4 084

27 22 33 3 730

6,0 5,0 4,0 3,0 2,0 1,0 0,0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax debts transfered for enforcement, Billion € Tax arrears, Billion € 16

RESULTS OF TAX EXAMINATIONS, 2011–2013 2011 € million Direct taxes Indirect taxes Withheld taxes Total

2012 € million

2013 € million

146 26 38 210

128 54 27 209

219 47 45 311

million € 350 300 250 200 150 100 50 0

Direct taxes

2011

Indirect taxes

2012

Withheld taxes

2013 17

INCOME TAX SCALE FOR 2014 Scale

Taxable income € 16 300–24 300 24 300–39 700 39 700–71 400 71 400–100 000 100 000–

Basic tax € 8,00 528,00 3 223,00 10 038,50 18 547,00

Rate within brackets % 6,5 17,5 21,5 29,8 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 %.

BREAKDOWN OF WAGE EARNERS, BY BASIC WITHHOLDING RATES, 2014

Basic rate 0–10 11–20 21–25 26–30 31–40 41–50 51– Total

Quantities 1 010 583 964 281 592 430 342 314 163 937 12 032 110 3 085 687

% 32,8 31,3 19,2 11,1 5,3 0,4 0,0 100,0

BREAKDOWN OF PENSION RECIPIENTS, BY BASIC WITHHOLDING RATES, 2014

Basic rate 0–5 6–10 11–15 16–20 21–30 31–35 36–40 41–50 51– Total

Quantities 358 598 165 796 201 113 222 890 390 528 48 966 16 126 5 984 1 058 1 411 059

% 25,4 11,8 14,3 15,8 27,7 3,5 1,1 0,4 0,1 100,0

INCOMES OF INDIVIDUALS IN 2012 STATE TAXATION Type of 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

Total income € million 117 657 80 459 26 183 1 332

Average income € 26 324 28 416 17 181 4 168

3 484 391

561 698 135 466

6 202 2 889

10 016 6 847 3 793 2 641

2 631 196 1 317 237 2 257 154 286 756

3 807 5 198 1 681 9 211

1 367 2 214

271 750 -

5 029 -

127 672 124 503

4 616 777 4 567 899

27 654 27 256

115 268 138 939 111 380

9 204 21 603 11 553

Rental income Other capital income Total income of which taxable

Number of earners 4 469 521 2 831 420 1 523 920 319 575

Enterprise and partnership incomes Agricultural income Business income Income from general and limited partnerships

1 061 3 002 1 287

DIRECT TAXES AS PERCENTAGES OF TAXABLE INCOME, 2011 AND 2012 State income taxes Taxpayer category Wage earners Pensioners Farmers and forestry taxpayers Business operators and the self-employed Individuals total

Other direct taxes

Direct taxes total

2011 6,0 3,2 10,0

2012 5,7 3,2 9,8

2011 16,4 14,4 13,2

2012 16,5 14,5 13,7

2011 22,4 17,6 23,2

2012 22,2 17,8 23,5

9,3

9,2

16,1

25,4

25,3

6,0

5,7

15,7

15,8

21,7

21,5

INCOME EARNERS, TAXABLE INCOME AND INDIVIDUALS TAXES IMPOSED, BY CLASSIFICATION, 2012

Taxable income € 1–4 999 5 000–9 999 10 000–14 999 15 000–19 999 20 000–24 999 25 000–34 999 35 000–54 999 55 000–74 999 75 000–99 999 100 000–149 999 150 000–299 999 300 000– Total

Income Income earner earners % quantities distribution 430 462 489 679 609 016 510 432 457 945 881 757 813 064 223 385 84 493 43 711 16 384 3 681 4 564 009

9,4 10,7 13,3 11,2 10,0 19,3 17,8 4,9 1,9 1,0 0,4 0,1 100

Taxable Taxes % income % of distribution income 0,6 3,2 6,1 7,1 8,3 21,1 28,0 11,3 5,8 4,2 2,5 1,8 100

4,2 5,9 7,9 13,4 16,0 18,3 23,4 28,5 32,0 35,5 37,9 35,8 21,5

MAXIMUM DEDUCTIONS, 2011–2014 2011 €

2012 €

2013 €

2014 €

Deductions and allowances on earned income, both in state and municipal taxation Discretionary allowance for circum1 400 1 400 1 400 1 400 stantial incapacity to pay taxes Standard deduction for work620 620 620 620 related expenses Deduction for temporary quarters 3 000 3 000 3 000 3 000 Deduction for commuting expenses 7 000 7 000 7 000 7 000 Taxpayer`s own liability 600 600 600 600 Deductions and allowances granted on capital income Voluntary pension insurance premiums 5 000 5 000 5 000 5 000 Deductions and allowances granted in state taxation Pension allowance 11 150 11 660 12 630 12 610 Deduction granted to sailors 6 650 6 650 6 650 6 650 Deductions and allowances granted in municipal taxation Disabled person’s allowance 440 440 440 440 Deduction granted to sailors 11 350 11 350 11 350 11 350 Deduction from earned income 3 570 3 570 3 570 3 570 Student grant allowance 2 600 2 600 2 600 2 600 Pension allowances 8 170 8 530 8 880 8 950 Basic allowance 2 250 2 850 2 880 2 930 Credits from tax in state taxation Maintenance credit 80 80 80 80 Disabled person’s allowance 115 115 115 115 Credits from tax on earned income Earned income allowance 650 945 970 1 010 Credit for the deficit in capital 1 400 1 400 1 400 1 400 income One child 400 400 400 400 At least two children 800 800 800 800 Credit for domestic work 3 000 2 000 2 000 2 400 23

IMPORTANT TAX DEDUCTIONS 2009–2012

Deduction 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

2009 € million

2010 € million

2011 € million

1 644

1 641

1 669

1 328 556

1 401 589

1 526 603

2 320 3 832

1 179 4 175

1 447 4 608

12 229

10 793

10 804

806 75 218 6 515 5 221 567 433 108

1 796 71 210 6 442 5 471 374 279 71

1 842 69 190 6 494 5 550 445 340 80

1 208 391 76

1 293 408 75

1 509 476 75

Deduction

2012 € million

State and municipal taxation 1 676 Standard deduction of work-related expenses Deduction of commuting expenses 1 545 619 Membership fees in labour market organisations 1 424 Home loan interest 39 Student loan interest 5 073 Deduction for pension insurance State taxation 11 270 Pension allowance Municipal taxation 2 763 Basic allowance 66 Disabled person's allowance 181 Student grant allowance 6 433 Earned income allowance 5 685 Pension allowance 418 Credit for the deficit in capital income 318 For home loan interest 67 For first-time homebuyer's loan interest Tax credits 1 972 Earned income credit in state taxation 302 Tax credit for domestic costs 72 Disabled persons' credit

1 000 persons

Average €

2 787

602

831 1 975

1 860 313

1 244 339 2 639

1 144 116 1 922

1 412

7 979

1 957 196 179 2 586 1 145 1 547

1 412 337 1 011 2 488 4 963 270

1 309 197

243 343

2 624

751

360 680

839 105

TAXES AS PERCENTAGES OF GDP BY COUNTRY

2010 Denmark France Belgium Italy Sweden Finland Austria Norway Luxembourg Germany Iceland United Kingdom Greece Spain Portugal Estonia Canada Ireland Switzerland United States

47,6 42,9 43,5 42,9 45,5 42,5 42,0 42,9 37,1 36,1 35,2 34,9 30,9 32,3 31,3 31,0 27,6 28,1 24,8

Taxes, % of GDP 2012 2011 48,1 44,2 44,0 42,9 44,5 43,4 42,1 43,2 37,1 37,1 36,0 35,5 31,2 31,6 31,0 28,5 25,1

48,0 45,3 45,3 44,4 44,3 44,1 43,2 42,2 37,8 37,6 37,2 35,2 33,8 32,9 32,5 32,5 30,7 28,3 28,2 24,3

Source: OECD -) No data available.

TAX STRUCTURES BY COUNTRY The contribution of different tax types to tax revenue, % Income taxes

Denmark Norway United States Canada Switzerland Iceland United Kingdom Luxembourg Sweden Belgium Finland Italy Germany Spain Austria Greece France Estonia

61,7 48,0 47,7 47,2 46,1 45,8 35,7 35,5 34,9 34,7 34,4 32,8 30,4 30,1 29,1 24,7 23,6 20,9

Consumption taxes

Other taxes

31,6 26,4 17,9 24,4 21,7 34,8 32,8 28,0 28,8 24,9 32,8 25,5 28,4 26,6 27,5 37,3 24,4 42,2

6,7 25,6 34,4 28,4 32,2 19,4 31,5 36,5 36,3 40,4 32,8 41,7 41,2 43,3 43,4 38,0 52,0 36,9

Source: OECD

MAXIMUM MARGINAL INCOME TAX RATES 2012â&#x20AC;&#x201C;2013, BY COUNTRY Individuals 2012 Belgium Greece Sweden Denmark Finland Portugal United Kingdom Ireland Spain France Holland Canada Norway Japan Germany Australia Italy Iceland Austria United States Luxembourg Switzerland Estonia

59,4 57,4 56,6 56,1 55,5 54,6 52,0 52,0 52,0 51,2 49,3 48,0 47,8 47,8 47,5 47,5 47,3 45,3 43,7 43,2 42,7 41,8 23,2

Corporate 2013 34,0 26,0 22,0 25,0 24,5 31,5 23,0 12,5 30,0 34,4 25,0 26,1 28,0 37,0 30,2 30,0 27,5 20,0 25,0 39,1 29,2 21,1 21,0

Source: OECD 28

PROPORTIONS OF VAT, 2011 AND 2012, IN PERCENTAGES GENERAL CONSUMPTION TAXES, BY COUNTRY Consumption taxes, Consumption taxes, % of taxes % of GDP Finland Sweden Norway Denmark Iceland Germany Belgium Austria Luxembourg France Switzerland United Kingdom Ireland Italy Spain Portugal Canada USA Japan

2011 20,6 21,5 18,0 20,7 21,6 19,8 16,1 18,6 17,0 16,4 12,7 20,6 22,4 14,5 16,7 14,3 8,1 16,3

2012 20,7 21,2 18,3 20,7 22,3 19,4 15,9 18,6 17,9 16,0 12,4 20,9 21,6 13,7 16,6 26,1 14,6 7,8 -

2011 8,9 9,6 7,8 9,9 7,8 7,3 7,1 7,8 6,3 7,3 3,6 7,3 6,2 6,2 5,3 4,4 2,0 2,7

2012 9,1 9,4 7,7 9,9 8,3 7,3 7,2 8,0 6,8 7,2 3,5 7,4 6,1 6,1 5,4 8,5 4,5 1,9 2,7

Source: OECD -) Information not available.

VAT RATES IN THE EU, INTERNATIONAL COMPARISON 2014 VAT rates on tax-free price % Reduced General rates rates Hungary Sweden Denmark Romania Finland Ireland Greece Portugal Poland Italy Holland Belgium Spain Latvia Lithuania Czech Republic Bulgaria Austria France Slovakia Estonia United Kingdom Cyprus Germany Malta Luxemburg

Source: OECD 30

27 25 25 24 24 23 23 23 23 22 21 21 21 21 21 21 20 20 20 20 20 20 19 19 18 15

5/18 6/12 5/9 10/14 9/13,5 6,5/13 6/13 5/8 10 6 6/12 10 12 5/9 15 9 10 5,5/10 10 9 5 5/9 7 5/7 6/12

NOTES

TAX.FI

Finnish Tax Administration publication 352e.14 35

Finnish Tax Administration PO Box 325, 00052 VERO tax.fi