Capital gains arising from the sale of equities are deemed as capital income subject to tax, on which a 28% capital income tax is collected.
Any capital gains arising from the sale of equities must be declared in a supplement to the pre-filled tax return and any capital losses that may arise can be deducted in taxation from the capital gains arising during the tax year and the three subsequent tax years.
However, capital gains are not deemed as capital income subject to tax, if the combined sales prices of the assets sold during the tax year do not exceed EUR 1,000. On the other hand, capital losses arising during the tax year are not tax deductible if the combined acquisition costs and the combined sales prices of the assets sold during the tax year do not exceed EUR 1,000.
It should be noted that 70 % of the dividends received from a publicly listed company is deemed as capital income subject to tax and 30 % is deemed as capital income exempt from tax. The gross amount of dividends is reported in the pre-filled tax return, from which the Finnish Tax Administration will calculate the amount of the dividends subject to tax.
The taxation of non-Finnish dividends depends on which country the dividend is received from and what kind of contract the Finnish State has with that country.