Among other things, the law change raised the threshold at which point inheritance tax becomes payable.
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The terms of payment of those taxes was also relaxed. File photo. Image: Andrey Popov
Finnish Parliament has approved reforms to the country’s inheritance and gift tax legislation, it announced on Wednesday.
In practice, it will raise the minimum inheritance tax threshold from the current 20,000 euros to 30,000 euros.
When the new legislation goes into effect at the beginning of next year, inheritance amounts below the new limit will not be subject to tax.
Additionally, the minimum value for a gift that is subject to tax was raised from 5,000 euros to 7,500 euros.
The terms of payment of those taxes was also relaxed.
PM’s party wanted the reforms
Finland’s inheritance tax policy has remained unchanged since 2009. However, to many, the rule gradually tightened over the years, as incomes and the cost of living have risen.
Prime Minister Petteri Orpo’s National Coalition Party was particularly enthusiastic about the reforms, and the party has a long-term goal of completely eliminating the inheritance tax.
Earlier this year, the government examined the feasibility of dropping the inheritance tax, without a precise answer. However, it was decided that it wasn’t worth abolishing the tax entirely.
The government’s second-largest partner, the Finns Party, has opposed abolishing the inheritance tax. The party’s leader, Finance Minister Riikka Purra, has said she would prefer lowering work-related income taxes.