Structuring Corporate Capital Gains Tax System in the European Union – A Comparative Finnish Perspective

This study examines the corporate capital gains taxation in Nordic countries, European Union and Finland. The main perspective is in the corporate income tax law, but because of the multidisciplinary subject of the corporate capital gains taxation, this study also has an economic perspective. Before analyzing the taxation itself, the basic concepts for the study are introduced such as the concept of capital, income and capital gain. Also the tax framework of this study is introduced by describing the most significant features and issues in corporate income taxation and in corporate capital gains taxation. Corporate capital gains taxation is discussed by starting with Nordic countries, continuing with European Union member states and finally ending up with Finland. A rough comparative summary is created at the end of each of these sections. Recent changes having taken place until January 2015 in the corporate capital gains taxation are also included in the study. Taxation is investigated based on the existing tax law literature, and the analysis is fulfilled with the help of the selected case law. After the international tax system analysis, the future options for corporate capital gains taxation are discussed as well as challenges related to the changes in the corporate income taxation such as correct level of harmonization so that individual countries still have their own fiscal policy. This study offers the value-added to the society in a couple of different ways. The study extensively analyzes the international corporate capital gains taxation models. In addition, the study not only discusses the corporate capital gains purely from the legal point of view but also has a strong focus on the underlying features behind the corporate capital gains taxation system: features of the good taxation system, economics and competitiveness, significance and role of the corporate capital gains in the economics. The conclusions of the study are made in a concrete way, because a proposal for the focus of future development of the corporate capital gains taxation at the EU level and the proposal for a future corporate capital gains taxation model in Finland as an individual Nordic country and EU member state is developed