Published: 14 July 2011

Tax ratio 42.1 per cent in 2010

The tax rate, or the ratio of taxes and compulsory social security contributions to gross domestic product, was 42.1 per cent in 2010. One year earlier, it was 42.6 per cent. The tax ratio fell because tax accruals grew slower than GDP in nominal terms. The tax rate has last been this low in 1987. In 2010, the accruals of taxes and compulsory social security contributions totalled EUR 76.0 billion, which is around three per cent more than in the year before. These data are based on revised preliminary national accounts data concerning 2010. The data did not essentially change from those released at the beginning of March.

Taxes and compulsory social security contributions by sector, 2009–2010 1)

Sector Year Million euro Ratio to GDP, %
S13+S212 Total 2009 73 835 42.6
2010 75 959 42.1
S1311 Central Government 2009 34 061 19.7
2010 34 685 19.2
S1313 Local Government 2009 17 595 10.2
2010 18 535 10.3
S1314 Social Security Funds 2009 22 026 12.7
2010 22 587 12.5
S212 European Union 2009 153 0.1
2010 152 0.1
1) Preliminary data

The accrual from households’ income tax amounted to EUR 22.3 billion in 2010, being around one per cent less than in the year before. Although the revenue from municipal tax grew by three per cent, the income tax revenue of the state decreased by nine per cent, which lowered the total accrual from households’ income tax. State income tax includes both taxes on earned income and taxes on capital income. In contrast, the corporation tax revenue turned towards brisk growth in 2010. The growth amounted to 30 per cent, in which case around EUR one billion more was accrued from corporation tax than one year earlier.

In 2010 the tax revenue of the state totalled EUR 34.7 billion, which is 1.8 per cent more than in 2009. The tax revenue of municipalities amounted to EUR 18.5 billion, or 5.4 per cent more than one year earlier. Social security funds accrued compulsory social security contributions to the tune of EUR 22.6 billion. Nearly 77 per cent of this 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 17.2 per cent in 2010. In 2009 the net tax ratio was 17.8 per cent.


Source: National Accounts, Statistics Finland

Inquiries: Niina Suutarinen (09) 1734 3302

Director in charge: Ari Tyrkkö

Tables

Tables in databases

Figures

Updated 14.7.2011

Referencing instructions:

Official Statistics of Finland (OSF): Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2010. Helsinki: Statistics Finland [referred: 27.1.2022].
Access method: http://www.stat.fi/til/vermak/2010/vermak_2010_2011-07-14_tie_001_en.html