The Ministry of Finance published its proposal for Budget 2017 on 12 August 2016. The tax measures will be discussed by the government on 31 August and 1 September 2016. Details of the tax measures are summarized below.
The possibility for setting off losses is broadened for corporate tax purpose. The tax brackets for earned income are indexed for inflation in the personal taxation. For individual taxation, the deductible portion will be 45% in 2017 (currently 55%). A special tax credit or deduction for personal taxation is introduced for self-employed entrepreneurs.
The proposal also includes some changes in VAT and excise tax area.
VAT
- Turnover thresholds for small companies reporting and paying VAT are increased. They will be:
- EUR 100,000 (currently EUR 50,000) for reporting on a quarterly basis; and
- EUR 30,000 (currently EUR 25,000) for reporting on an annual basis.
- Companies with turnover of below EUR 500,000 are given the possibility to remit VAT to the tax administration only after they have received the related payment; currently, VAT is due once the invoice has been issued.
Other taxes
- Excise duties on tobacco products are increased in phases between 2016 and 2019.
- A special duty on electric cigarettes is introduced.
- Excise duties on sweets and ice cream are abolished.
- The tax base on soft drinks is amended.
- Tax on vehicles in use in Finland (ajoneuvovero) is increased, whereas car tax (autovero) is reduced.
- A tax on registered boats and other registered motor vehicles is introduced.
