Published: 11 July 2013

Tax ratio 44.1 per cent in 2012

The tax ratio was 44.1 in 2012 and increased for the second year in a row. The tax ratio describes the ratio of taxes and compulsory social security contributions to gross domestic product. In 2011, the tax ratio was 43.7 per cent. The accrual of taxes and compulsory social security contributions grew by 3.0 per cent in 2012. The total accrual amounted to EUR 84.9 billion. The tax ratio for 2012 went up by 0.5 percentage points because GDP became revised from the preliminary data released in March. The data on the accrual of taxes did not become significantly revised from previously released data. These data are based on the revised national accounts data for 2012.

Taxes and compulsory social security contributions by sector, 2011–2012 1)

Sector Year Million euro Ratio to GDP, %
S13+S212 Total 2011 82 416 43,7
2012 84 878 44,1
S1311 Central Government 2011 39 299 20,8
2012 40 093 20,8
S1313 Local Government 2011 19 166 10,2
2012 19 359 10,1
S1314 Social Security Funds 2011 23 761 12,6
2012 25 241 13,1
S212 European Union 2011 190 0,1
2012 185 0,1
1) Preliminary data

The revenue from households' income tax rose by 3.2 per cent and totalled approximately EUR 24.8 billion. The value added tax revenue grew by 3.6 per cent and was EUR 17.6 billion. The revenue from employers' employment pension contributions increased by 4.0 per cent. Employment pension contributions by the insured grew by 12.7 per cent. The corporation tax revenue decreased by EUR 0.9 billion from last year. The decrease in corporation tax revenue was affected by, for instance, a drop in the tax rate in 2012.

The tax revenue of the state totalled EUR 40.1 billion, which is 2.0 per cent more than one year previously. The tax accrual of municipalities grew by one per cent and was EUR 19.4 billion. Social security funds accrued compulsory social security contributions to the tune of EUR 25.2 billion, or 6.2 per cent more than one year earlier. Only social security funds' accrual of taxes and contributions grew relative to GDP.

Net tax ratio decreased to 18.3 per cent from 18.8 per cent the year before. The net tax ratio is calculated by deducting the subsidies, and current and capital transfers paid by general government to households and enterprises from the tax ratio.


Source: National Accounts, Statistics Finland

Inquiries: Jukka Hytönen 09 1734 3484, financial.accounts@stat.fi

Director in charge: Leena Storgårds

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Tables

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Appendix tables

Figures

Updated 11.7.2013

Referencing instructions:

Official Statistics of Finland (OSF): Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2012. Helsinki: Statistics Finland [referred: 20.1.2021].
Access method: http://www.stat.fi/til/vermak/2012/vermak_2012_2013-07-11_tie_001_en.html