Finland Tax Agency Clarifies Taxation of Hidden Dividends

The Finnish Tax Administration Aug. 28 posted online Guidance No. VH/3393/00.01.00/2025, clarifying the taxation of hidden dividends. Topics covered include: 1) clarification that a hidden dividend occurs when a shareholder or their relative receives a financial benefit from a company that wouldn’t occur between independent parties; 2) taxation of hidden dividends for individuals as fully taxable earned income; 3) descriptions of the entities that distribute hidden dividends; 4) clarification on recipients of hidden dividends, including shareholders, nonresident taxpayers, and relatives; 5) circumstances when a benefit can be deemed a hidden dividend, including material price deviations and covered private expenses or ...