Finland Outlines Tax Measures for 2013-2016: R&D Incentive Introduced, VAT Rates Increased

April 5, 2012 - PRLog -- (Sunnyvale, CA)- Finland has outlined tax measures spanning 2013-2016 that include R&D incentive rates, increase in VAT rates and updates on Corporate Taxation updates.

Highlights

Corporate Tax:
* The government in a March 2012 press release announced that depreciation rates are doubled for some industrial investments until the end of the year 2014.
* The government also introduced an R&D incentive that allows a company to credit employment costs of its personnel engaged in R&D activities against its corporate income tax. The incentive comes into effect from 2013.

Individual Tax:
* Annual adjustments to the tax brackets are suspended for 2013 and 2014;
* For taxable income exceeding EUR 100,000, a new tax bracket is introduced
* For taxpayers with extremely low taxable income , earned income credit against national tax (työtulovähennys) is increased.
* Municipal taxation allowance is increased (current maximum is EUR 2,850);
* Large pensions will be more heavily taxed
* People with inheritances exceeding EUR 1,000,000 will pay more taxes
* Individuals investing in Small and Medium Enterprises (SMEs) can avail of a special tax incentive

Value Added Tax (VAT)
          * 1% increase in standard and the reduced VAT rates announced Please call/email for more details.
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Sunnyvale, CA —Vyoma Nair, co-founder of Nair & Co., a firm that helps companies expand internationally, has been recognized as one of Silicon Valley’s ‘2011 Women of Influence’ by the Silicon Valley/San Jose Business Journal.