Legal Alerts/16 Apr 2013

Legal Alert – Court Precedent: Ore Value Not Part of Real Estate Value in Finnish Taxation

The Administrative Court of Rovaniemi gave a landmark ruling on April 4, 2013, regarding the calculation of Finnish real estate tax in relation to mining. According to the ruling the ore value must not be counted in the value of the real estate for Finnish real estate tax purposes.

During the annual real estate tax assessment the Tax Administration had included the ore value in the value of the real estate due to fact that ore was exploited for business purposes. The ore value for tax purposes was determined based on the extraction fee levels, an average annual extraction volume, the exploitation time of the mine and a computational 8% interest rate.

Following the appeal of the mining company, the Administrative Court ruled that the concept of real estate should be defined in accordance with the Finnish partitioning legislation. As the mining rights are not dependent of the ownership of the real estate, the mining rights should not be considered as constituent part of the real estate. Therefore any ore should not be included in the tax basis of real estate tax.

In accordance with the ruling, the mining company is entitled to real estate tax refund once the decision becomes legally binding.

Attorneys at law Borenius assisted the taxpayer in the legal proceedings.

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Additional information

Casper Herler

Managing Partner


Einari Karhu