1 / 36

WORKING LIFE, TAXATION AND PENSION SYSTEM in Finland, Russia and Poland

WORKING LIFE, TAXATION AND PENSION SYSTEM in Finland, Russia and Poland. Iida Piironen Elisa Kiiskinen Raila Vattulainen Valeriya Serbina Adrian Goncraz. FINLAND. BASICS. FINLAND Population: 5,4 million Spoken languages: Finnish, Swedish and Samí

tyra
Download Presentation

WORKING LIFE, TAXATION AND PENSION SYSTEM in Finland, Russia and Poland

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. WORKING LIFE,TAXATIONAND PENSION SYSTEMin Finland, Russia and Poland Iida PiironenElisa KiiskinenRaila VattulainenValeriyaSerbinaAdrian Goncraz

  2. FINLAND

  3. BASICS • FINLAND • Population: 5,4 million • Spoken languages: Finnish, Swedish and Samí • Form of government: Republic, Parliamentary demoncracy • JOENSUU • Founded in 1848 • Inhabitants: 73 305 • Land area: 2751 km2 • Industries: metal and wood industry, services

  4. FINLAND Agestructure • Amount of young people in Finland decreases and amount of old people rises • Post-war born massive generation is starting to overrun Finland’s retirement world • Problem with the ageing population and senior citizens retirement is that amount of labor force decreases • Population prediction 2060; young people 15,2 and old people 28,2

  5. FINLANDEmployment/unemployment • Employment rate January 2013 66,9 % • Unemployment rate January 2013 8,7 % • The latest employment review was made of month December 2012 -> showed that unemployment had risen when comparing to the month or year before • Also in January 2013 unemployment increasing

  6. FINLANDWorking life • When eyeing only full-time workers Finland has the shortest working week of all EU-countries (all 37,4 hours, only full-time 37,8) • Annual working hours have decreased about 360 hours when comparing year 1960 to year 2010 (nowadays 1700 hours on average per year) • Average working 30 years of his life

  7. FINLANDTaxation • Every working people in Finland pay taxes from their earned income. • With tax revenues the state pays for example our health care, education and other services needed by the citizens. • The tax administration, Ministry of Finance and tax offices are mainly responsible of taxation in Finland.

  8. FINLANDGrowingincomeinequality • In 2011 the entire populations revenue growth was 0,7% on average. • Populations tithe with highest-income increased their income by 2,2 percentage point, at the same time the tithe with lowest income increased their income by only a couple of tenths of a percent. • The ten percent with best income in Finland earns 23,6% of Finland’s whole revenue • Authorities believe that the one of the main reasons for income inequalities is capital income centralization

  9. The main taxes • Value-added tax (VAT) is a consumption tax, aimed at goods and services taxation • Earned income tax is a progressive tax, which is paid from, for example salary, pension and educational grants • Capital income taxation’s subordinates are all revenue gained from the investments.

  10. Transfer pricing • 4-8 billion euros annual loss of tax revenue,1.6 billion is due to companies transfer pricing • in 2010 Nokia made result 1.8 billion euros but paid the tax in Finland only 1.6 million euros • The corporate tax rate 24,5% • In 2010 the nine largest listed companies paid taxes < 6% of their results made

  11. FINLANDPension system

  12. FINLANDPension system

  13. FINLANDPension system • Finland’s pension system was reformed sicnificantly in 2005 • The amount of retiring people is raising more and more each year and the life span is getting longer  remarkable changes had to be made • The main changes • Add 2-3 working years • Opportunity to shift to old-age pension flexible within age of 63-68 • People gets incentive bonus if they work longer

  14. RUSSIA

  15. Taxation In Russia, the income tax is officially called the tax on personal income (PIT).

  16. The object of taxation (Article 209 of the Tax Code) shall be income received by the taxpayer: • for individuals who are tax residents of the Russian Federation • for individuals who are not tax residents of the Russian Federation.

  17. The basic tax rate - 13% Some types of income are taxed at different rates: 35% 9% 15% 30%

  18. There are several types of pensions: For years of service; • Disability; • Survivor; • Social; • Old age.

  19. The survey examines the economic activity of the population aged 15-72 years • 69.9 million people classified as employed • 4.9 million people - the unemployed using the ILO criteria (that is, had no job or gainful employment • Compared to I quarter 2011. the employed population increased by 0.5 million

  20. the law is equated to the work shall not exceed 40 hours a week • workers under 16 are allowed to work up to 24 hours a week • employees from 16 to 18 years - not more than 35 hours a week. • working time of 35 hours per week, is set to disabled groups I and II. • work involves dangerous or hazardous conditions, may not work more than 36 hours a week.

  21. Working day (shift) may not exceed: for workers between the ages of fifteen and sixteen years - 5:00, • at the age of sixteen to eighteen years - 7 hours • for general education institutions, educational institutions of primary and secondary education, combining for academic year study and work at the age of fourteen to sixteen years - 2.5 hours, • at the age of sixteen and eighteen years - 4 hours • for the disabled - according to medical opinion issued in accordance with the federal laws and other legal acts of the Russian Federation.

  22. POLAND

  23. Poland • Population: 38,415,284 • Language: Polish • Government: Parliamentary republic • President: Bronisław Komorowski • Currency: PLN (złoty)

  24. Taxation for individuals

  25. Capital Gains • Added to the regular income • If real estate is sold by an individual more than 5 years after the purchase, capital gain is exempt from tax. Otherwise the purchase is taxed at 19%. • Individual's capital gain from sale of shares is taxed at a final tax rate of 19%. • Dividend and interest income for individuals are taxed at 19% rate.

  26. Pension system • First pillar • Closed fund (ZUS) • Paid by employer • Compulsory • Contributions are controlled by ZUS • Managed by the public fund • Second pillar • Open fund • Paid by employer • Compulsory • The amount is controlled by ZUS • Managed by Private funds • Third pillar • Voluntary fund • Paid by employee • Independent • Managed by Private funds

  27. Pension wages Old age pension: • PLN 1471.30 (355.03 €) Disability pension: • PLN 1096.34(264.55 €) Survivors’ pension: • PLN 1292.07 (311.78 €)

  28. Employment • Overall rate of 59% • 66% of men and 53% of women are employed

  29. Unemployment

  30. Working time • Average of 44 hours a week • 5 days a week • 2 free days: Sunday and a day chosen by the employer

  31. Salaries

  32. Thanks for your attention

More Related