Finland Tax Agency Updates Guidance on Tax Treatment of Life Insurance

The Finnish Tax Administration Dec. 21 issued Guidance No. VH/2858/00.01.00/2023, on the individual income, inheritance, and gift tax treatment of life insurance, and the treatment of life insurance payments under DTAs. Updates include: 1) material reflecting Central Tax Board preliminary ruling No. KVL 37/2022, on changing the income basis for life insurance policies; 2) material on taxation of buyback payments associated with fractionally-owned life insurance divided by joint decision of the co-owners; and 3) clarification concerning the exchange rate applicable to payments of life insurance taken out in a foreign currency; and 4) the calculation of loss when life insurance ...