Press Release: Direct taxation: Commission requests Finland to end discriminatory taxation of forest income earned by non-residents

The European Commission sent Finland a formal request to amend its legislation which leads to different taxation of forest income depending on the residence of the owner. According to the Finnish legislation, non-residents are not entitled to any deductions for expenses or other types of deductions, which are available to residents for such income. The Commission's request took the form of a ‘reasoned opinion’ (second step of the infringement procedure of Article 226 of the EC Treaty). If Finland does not reply satisfactorily to the reasoned opinion within two months the Commission may refer the matter to the European Court of Justice.