Finland Tax Agency Posts Preliminary Ruling Clarifying Taxation of Capital Gains Earned by Nonresidents

The Finnish Tax Administration March 16 posted online Central Tax Board Preliminary Decision No. KVL:2026/8, clarifying the taxation of capital gains earned by nonresidents from the transfer of shares. The taxpayer, a nonresident company, intended to transfer the shares of a Finnish holding company and sought clarification on whether Finland could tax the capital gain from the share transfer under domestic law and the Nordic DTA. Upon review, the Central Tax Board clarified that: 1) the Finnish holding company’s profit from the sale of shares constituted income derived from Finnish immovable property; and 2) under the Nordic DTA, Finland had ...