Legal Alert – Effective Date Of The Amendments Of Finnish Transfer Taxation Postponed
The Finnish Parliament has decided on the proposed amendments to the Transfer Tax Act (Government bill 125/2012). Although the Parliament agreed on the substance of said Government bill, the Parliament decided in accordance with the Finance Committee report that the proposed amendments should become effective later than scheduled.
In its report, the Finance Committee recommended that, firstly, the increase on the amount of transfer tax levied on the transfer of shares of a housing company or a joint-stock property company shouldnt take effect until the 1st of March, 2013. Secondly, the alteration of the Transfer Tax Act concerning holding companies holding Finnish real property is also to become effective later than scheduled, the new proposed effective date being the 1st of March 2013.
The alteration of the effective date is based on the need to grant tax authorities enough time to draw up the application directive on said, partly obscure amendments. Consequently, it also grants time for taxpayers to complete the transactions affected by the amendments.