Taxation of fund savings

We will notify the Finnish tax authorities of your end-of-year mutual fund holdings, your fund switches and redemptions during the year and the annual income distributed to distribution unit holders.

Any capital gains arising from the redemption of fund units and the annual income distributed on fund distribution units are deemed as capital income, on which a 28 % capital gains tax is charged.

Switching to units of another mutual fund is treated in taxation as a redemption and new subscription, which produces a capital gain or loss. If distribution units in a fund are switched to growth units in the same fund, or vice versa, no taxable capital gains or losses will be realised.

Any capital losses that may arise from switches or redemptions 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.

You should check the accuracy and completeness of the pre-filled tax return you receive, and make the necessary corrections and additions. Return the corrected tax return to the Finnish Tax Administration.