Finnish Budget Bill for the year 2012

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On 5 October 2011, the Finnish Government presented to Parliament the Budget Bill for 2012.

The proposed Bill provides for the following conditions:

Default rate on dividends will be increased from 28% to 30%;
Default rate on interest payment will remain at 0%;
Relief at source will be possible for dividend payments according to DTT or 25% if the beneficial owner is an “eligible corporation”.

This proposal is now at the stage of a Government Bill. The Finnish Tax Administration will give further clarification and instructions with regard to the procedure only after the Bill has been passed and the amended Act has entered into force.

We will continue to monitor the Bill for any developments and will provide more information as it becomes available.