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In Finland the tax treatment for dividends is even friendlier. If you have a 1.5M balance sheet, you can pay yourself 120k euros in dividends annually at an ef
by pavlov 1y ago
In Finland the tax treatment for dividends is even friendlier.
If you have a 1.5M balance sheet, you can pay yourself 120k euros in dividends annually at an effective tax rate of only 7.5%.
Let’s just say that small businesses and professionals have very good lobbyists. An employee making 120k / year pays over 40% tax.
This creates a tremendous incentive for professionals to incorporate and use every trick in the books to build up a larger balance sheet on paper.
- hrududuu 1y agoThis type of comparison needs to add corporate income tax (20%) in order to be an apples to apples comparison,so 27.5. It's still a stark difference in taxation, and I know of no other country that does what Finland does for dividend taxation. In fact for earned income,things look even uglier when you add in tax-like social security contributions. Perhaps not coincidentally, Finnish companies are also an outlier in paying extremely high dividends.