Published: 1 March 2006
Tax ratio up slightly in 2005
According to preliminary data calculated by Statistics Finland, the ratio of the taxes and compulsory social security contributions collected by general government to gross domestic product was 44.5 per cent in 2005. One year earlier, the ratio was 0.2 percentage points lower. The total accrual of taxes and compulsory social security contributions went up by 4.1 per cent from the previous year and was EUR 69.0 billion. The net tax ratio, i.e. the tax ratio less current and capital transfers and subsidies received by the private sector, went up by 0.5 percentage points to 22.1 per cent.
The tax revenue of the state increased by 3.4 per cent from the previous year. Strengthened consumption and investment demand put revenue from value-added tax up by 5.1 per cent to EUR 13.7 billion. Municipalities' tax revenue grew faster than the state's, or by 4.0 per cent. Several revisions were made to the basis for collecting income tax in 2005, e.g. the system of avoir fiscal was abandoned in the taxation of dividends, and the corporate income tax and capital gains tax rates were lowered. The total combined tax revenue of the state and municipalities went up by 3.7 per cent.
The collected amount of compulsory social security contributions was 5.3 per cent higher than in the year before. Their total accrual went up to EUR 18.8 billion.
Finnish National Accounts time series for 1975-2004 will become revised on 31 March 2006. At the same time, the time series of these Statistics on Taxes and Tax-like Payments will also be revised for the 1975-2004 period. After this, the data on 2005 published here will no longer be fully comparable with those on earlier years. Calculations concerning 2005 made in accordance with the time series revision will be published on 13 July 2006.
Taxes and compulsory social security contributions by receiving sector
|- Income and property tax||9,752||10,036||13,973||12,098||12,676||11,806||12,319||12,749|
|- Value-added tax||9,700||10,137||10,869||11,118||11,680||12,455||13,021||13,689|
|Social security funds||13,542||14,246||14,486||15,473||15,640||15,721||16,399||17,292|
|Relative to GDP, %|
|- Income and property tax||8.3||8.3||10.7||8.9||9.0||8.2||8.2||8.2|
|- Value-added tax||8.3||8.4||8.3||8.1||8.3||8.7||8.7||8.8|
|Social security funds||11.5||11.8||11.1||11.3||11.1||10.9||11.0||11.1|
* = Preliminary data.
Source: Taxes and tax-like payments 2005. Statistics Finland
Inquiries: Mr Mika Sainio +358 9 1734 2686, firstname.lastname@example.org
Director in charge: Mr Ari Tyrkkö
Tables in databases
Last updated 1.3.2006
Official Statistics of Finland (OSF):
Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2005. Helsinki: Statistics Finland [referred: 25.5.2015].
Access method: http://www.stat.fi/til/vermak/2005/vermak_2005_2006-03-01_tie_001_en.html