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Finland. Compare and draw conclusions

September 14, 2021 Victor Mikhailov

Finland is a small country, the closest neighbor of Russia, bordering the Leningrad and Murmansk regions and the Republic of Karelia. Finland was part of Russia from 1809 to 2017. The population of Finland - 5.5 million people - is concentrated mainly in the southern and central parts of the country.

The internal gross product (GDP) of Finland in face value is 48810 dollars. (15th place in the world), according to the parity of purchasing power (PPS) 50748 dollars. ( 21st place ).

For a general comparison of the standard of living of various countries and regions, the human development index (IChR) is usually used, taking into account 3 types of indicators: the living expectancy of the country's population, the level of literacy of the country's population (the average number of years spent on training, and the expected life expectancy ) and the standard of living, estimated through gross national income of the PPP in US dollars.

In the ICHR, Finland in 2019 was in the world 1 2nd place, and in the ICHR, taking into account inequality-on the 4th.

For comparison: in Russia, GDP in 2019 amounted to 1,1601 dollars in face value. ( 64 place ), according to the PPS - 28184 dollars. ( 53 place ).

According to the ICHR, Russia was in 49th place, taking into account inequality - at 42.

The growth rate of Finland's economy

During the 1970–2019, Finland GDP at current prices increased by 23.8 times to 269.3 billion dollars. The average annual increase in Finland GDP was at 5.3 billion dollars. (6.7%), and GDP growth in constant prices is at 2.4%. At the same time, the share of Finland’s economy in the world decreased by 0.023%, and in Europe it increased by 0.43%. The minimum of GDP Finland was in 1970 (11.3 billion dollars), and the maximum - in 2008 (284.6 billion dollars).

GDP per capita in Finland over the years increased by 19.9 times to 48678.0 dollars. The average annual growth of GDP per capita in current prices is $ 943.4 or 6.3%.

For comparison. Since 1991 - the time of the existence of the Russian Federation, GDP per capita of the Russian population in the PPS grew by 27% in constant prices and nominally 3.3 times. At the same time, in 1998, GDP for PPP per capita was only 5,460 dollars, i.e. From the minimum importance in the latest history of Russia, GDP per capita of the Russian population in the PPS grew 5 times.

Taxes from citizens

Income tax in Finland for citizens and visitors conducting in the country for more than 6 months is charged on a progressive scale and depends on the level of salary (in euro): 0% - up to 16,000; 6% - up to 24,000; 17% - up to 39,600; 21.4% - up to 71,300; 29.7% - up to 100,000; 31.7% - over 100,000.

For individuals who are foreign employees, a fixed rate is valid - 35%.

Other types of contributions are also taken from the population: communal - 16.5–21%; social insurance - 2%; in the employment service - 0.6%; Pension insurance - 5.15%.

Investment category income tax - 28%; For dividends - 28%.
Real estate tax in the country is relatively small: when applying for a purchase/sale of an apartment or house, 0.3-0.75% of the total amount is charged; The percentage of the land is 0.6–1.3%.

Taxes and deductions of legal entities
Corporate tax. To pay a corporate tax, the company must be in the status of a joint -stock company, fund or cooperative. The tax size is 26% with the annual profit of the organization.
Deductions from the amount of capital. It applies to other entrepreneurs. There are two mandatory taxes for them:

- In the amount of 18%. This tax is calculated based on the total value of the assets of the enterprise. If the total value of assets is 1000 euros, then the entrepreneur is obliged to pay 180 euros per year.
- in the amount of 28%. This is a tax on the annual income or turnover of the enterprise.

Value added tax. VAT calculation is carried out by three types of bets: 24% - the main; 14% - for food products and public food services; 10% - for transport, medicines, media.

Salary level in Finland

According to the statistical department of Finland, the average salary in the country as of 2020 is 3,313 euros. The average salary changes depending on the area of ​​residence, age, experience and education.

No minimum salaries have been approved at the state level, they are determined by collective labor contracts. The size of the minimum salaries in different industries reaches 1800–2000 euros, which is one of the highest compared to other EU countries.
For comparison. According to official figures from Rosstat, the income of the population of Russia in 2020 amounted to 35,361 rubles per month (about 400 euros), the average monthly salary - 51,083 rubles (less than 600 euros).

Average salaries in different sectors of the economy

The highest average salary in Helsinki: 3,586 euros (after taxes of taxes are about 2,678 euros), the lowest in Coopio: 2,572 euros, about 2,100 euros after paying taxes.

Pensions in Finland

In Finland, there are several different types of pensions accrued according to various criteria, such as: labor, folk, guaranteed, age, in terms of disability, pension of the widow or widow. The amount of the labor pension depends on the income during the period of work. The labor pension is paid to those people who have made deductions (approximately 24.4% of wages) to pension funds - private (for employees of the private sector) or state (for state employees). The obligatory contribution of the employer of the private sector to the wage fund is 17.75%, the employee’s share is 6.35% for employees under 53 years old and 7.85% for employees 53 years old and older. If we are talking about state employees, then the percentage of a pension contribution dedicated by the employer is from 16% to 21.6%.

If a person has worked out an insufficient number of years or for any other reasons his labor pension is less than the minimum or even completely absent, after reaching 65 years he is paid guaranteed and folk pensions.

The payment of such pensions may occur before, if a person has not worked due to disability.

In Finland, the taxable pensions, for example, with a pension of 2200 euros, will be withheld 22% and the net payment will be 1716 euros.

If the pension is insufficient for the subsistence minimum, part of the folk pension is additionally paying for it. When there is no labor pension at all, the amount of payment is 629 euros, it will be slightly smaller for a married pensioner: 557 euros. A guaranteed pension is a surcharge to a subsistence minimum, even if a folk pension is not enough for this. It is paid directly from the budget and cannot exceed 775.27 euros.

The size of the retirement pension is in the range of 1632 euros, and in men it is slightly higher, about 200 euros. The largest payments of the earned pension in the metropolitan region and on the Aland Islands. The most basic preferential program provided to pensioners is the payment of residence, usually it is paid to older people with a low pension who are forced to rent housing.

For example, if a pensioner has neither a public nor a retirement pension, and the guaranteed is 747 euros with a deduction of 5 euros of taxes, he is supposed to pay 500 euros. If the labor is 1.5 thousand with a deduction of 220 euros of taxes, 240 euros are added to him to pay for residence.

For comparison: the average pension in Russia is 14,986 rubles (about 175 euros).



Prices in Finland (according to E - Migration . Ru )

Compared to Russia in Finland, gasoline, mobile services, rental and purchase of real estate, some food (meat, bread), alcohol, and cigarettes are more expensive. Compare and draw conclusions! And keep in mind that Finland is not rich in natural resources!


Photo: Pixabay.com under the license: Creative Commons Attribution 4.0 International
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