Finland Tax Agency Updates Guidance on Tax Treatment of Life Insurance

The Finnish Tax Administration April 4 issued Guidance No. VH/1084/00.01.00/2024, on the individual income, inheritance, and gift tax treatment of life insurance. Updates include clarification of the deduction of interest on loans taken out for savings life insurance, as interest on income-generating debt. Topics covered include: 1) relevant definitions; 2) the taxation of insurance losses when amounts paid by the policyholder are greater than the amounts paid to them as insurance; 3) the taxation of buyback payments associated with fractionally-owned life insurance; 4) the exchange rate applicable to insurance taken out in a foreign currency; and 5) the treatment of ...