Published: 1 March 2010

Tax revenue decreased in 2009

The tax rate, or the proportion of taxes and statutory social security contributions to gross domestic product, was 43.0 per cent in 2009. In 2008 the tax ratio was 43.3 per cent. The accruals of taxes and compulsory social security contributions totalled EUR 73.6 billion, which is 7.7 per cent less than the year before. From 1975 tax revenue has declined only six times compared with the year before and not once as much as now. These data are based on the preliminary national accounts data for 2009.

The accrual from households’ income tax amounted to EUR 22.5 billion in 2009, being nearly seven per cent less than the year before. State income tax decreased by over 21 per cent, while the income tax revenue of municipalities increased by around two per cent. State income tax includes both taxes on earned income and taxes on capital income. The corporation tax revenue fell by around 46 per cent and was EUR 3.4 billion. Municipalities’ proportion of corporation tax declined in relative terms less than that of the state, because the share of municipalities was temporarily raised in 2009. In addition, less value added tax was collected than the year before. Its yield was EUR 14.8 billion, nearly five per cent less than in 2008.

In 2009 the tax revenue of the state totalled EUR 33.8 billion, which is nearly 15 per cent lower than one year previously. In contrast, the tax revenue of municipalities grew by around half a per cent, being EUR 17.6 billion. Social security funds collected compulsory social security contributions to the tune of EUR 22 billion. Over 76 per cent of them were employment pension contributions.

The net tax ratio, which refers to the tax ratio less the subsidies, and current and capital transfers paid by general government to households and enterprises, stood at 18.4 per cent in 2009. In 2008 the net tax ratio was 21.8 per cent. The net tax ratio fell more than the tax ratio, which was due to growth in public transfers, especially social security benefits paid.

Taxes and compulsory social security contributions by sector, 2008–2009 1)

Sector Year Million euro Ratio to GDP, %
S13+S212 Total 2008 79 675 43.3
2009 73 551 43.0
S1311 Central Government 2008 39 681 21.5
2009 33 808 19.8
S1313 Local Government 2008 17 505 9.5
2009 17 597 10.3
S1314 Social Security Funds 2008 22 283 12.1
2009 21 993 12.9
S212 European Union 2008 206 0.1
2009 153 0.1
1) Preliminary data

Source: National Accounts, Statistics Finland

Inquiries: Niina Suutarinen (09) 1734 3302, skt.95@stat.fi

Director in charge: Ari Tyrkkö

Tables

Tables in databases


Updated 1.3.2010

Referencing instructions:

Official Statistics of Finland (OSF): Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2009. Helsinki: Statistics Finland [referred: 17.6.2019].
Access method: http://www.stat.fi/til/vermak/2009/vermak_2009_2010-03-01_tie_001_en.html