--- title: "Taxation, Profit Distribution and Investment of Non-listed Companies in Finland" authors: - name: "Määttänen, Niku" - name: "Ropponen, Olli" url: "https://www.etla.fi/henkilot/ropponen-olli/" sameAs: - "https://orcid.org/0000-0002-5175-6284" - "https://twitter.com/ropponen_olli" date_published: "2014-12-09" series: "ETLA Raportit - Reports" series_number: "40" issn: - "2323-2447" - "2323-2455" jel_codes: - "D92" - "G35" - "H24" language: "fi" publisher: "ETLA Economic Research" pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-40.pdf" identifier: "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-40" abstract_translations: en: "This paper studies the taxation of non-listed companies and their owners in Finland. We first describe the main features of the Finnish tax system regarding the taxation of dividends from non-listed companies. We use firm-level data to illustrate how the tax incentives are reflected in firms’ profit distribution policies. We then build a dynamic investment model that features the main characteristics of the Finnish dividend taxation. In the model, entrepreneurs face a borrowing constraint and have a consumption smoothing motive. We use the model to investigate how the current dividend taxation affects the investment incentives. The results illustrate how the current dividend taxation in certain cases distorts firms’ investment decisions." --- # Taxation, Profit Distribution and Investment of Non-listed Companies in Finland **Published:** 2014-12-09 **Categories:** Publikationer, Rapporter **URL:** https://www.etla.fi/sv/publikationer/listaamattomien-osakeyhtioiden-verotus-voitonjako-ja-investoinnit/ #### Abstract This paper studies the taxation of non-listed companies and their owners in Finland. We first describe the main features of the Finnish tax system regarding the taxation of dividends from non-listed companies. We use firm-level data to illustrate how the tax incentives are reflected in firms’ profit distribution policies. We then build a dynamic investment model that features the main characteristics of the Finnish dividend taxation. In the model, entrepreneurs face a borrowing constraint and have a consumption smoothing motive. We use the model to investigate how the current dividend taxation affects the investment incentives. The results illustrate how the current dividend taxation in certain cases distorts firms’ investment decisions. --- ## Additional Information **Issn:** 2323-2447, 2323-2455 (Pdf) **Jel:** D92, G35, H24 **Kansikuva:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-40-kansi.jpg **Key Words:** Dividend taxation, Non-listed companies, Firm investment **Kieli:** fi **Kirjoittajat:** Määttänen, Niku - Ropponen, Olli **Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-40.pdf **Paivays:** 09.12.2014 **Saatavuus:** 2 **Sarja:** ETLA Raportit - Reports **Sarja Nro:** 40 **Sivuja:** 28 ## Bibliographic metadata (JSON-LD) ```json { "@context": "https://schema.org", "@type": "ScholarlyArticle", "@id": "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-40", "headline": "Taxation, Profit Distribution and Investment of Non-listed Companies in Finland", "inLanguage": "fi", "publisher": { "@type": "Organization", "name": "ETLA Economic Research", "url": "https://www.etla.fi", "logo": { "@type": "ImageObject", "url": "https://www.etla.fi/wp-content/uploads/logo-etla_logo.svg" } }, "datePublished": "2014-12-09T00:00:00+00:00", "author": [ { "@type": "Person", "name": "Määttänen, Niku" }, { "@type": "Person", "name": "Ropponen, Olli", "url": "https://www.etla.fi/henkilot/ropponen-olli/", "sameAs": [ "https://orcid.org/0000-0002-5175-6284", "https://twitter.com/ropponen_olli" ] } ], "abstract": "", "keywords": [ { "@type": "DefinedTerm", "name": "Dividend taxation", "@language": "en" }, { "@type": "DefinedTerm", "name": "Non-listed companies", "@language": "en" }, { "@type": "DefinedTerm", "name": "Firm investment", "@language": "en" } ], "isPartOf": { "@type": "PublicationIssue", "issueNumber": "40", "isPartOf": { "@type": "Periodical", "name": "ETLA Raportit - Reports", "issn": [ "2323-2447", "2323-2455" ] } }, "mainEntityOfPage": "https://www.etla.fi/sv/publikationer/listaamattomien-osakeyhtioiden-verotus-voitonjako-ja-investoinnit/", "url": "https://www.etla.fi/sv/publikationer/listaamattomien-osakeyhtioiden-verotus-voitonjako-ja-investoinnit/", "hasPart": { "@type": "CreativeWork", "inLanguage": "en", "text": "This paper studies the taxation of non-listed companies and their owners in Finland. We first describe the main features of the Finnish tax system regarding the taxation of dividends from non-listed companies. We use firm-level data to illustrate how the tax incentives are reflected in firms’ profit distribution policies. We then build a dynamic investment model that features the main characteristics of the Finnish dividend taxation. In the model, entrepreneurs face a borrowing constraint and have a consumption smoothing motive. We use the model to investigate how the current dividend taxation affects the investment incentives. 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