[pavlov]

In Finland the tax treatment for dividends is even friendlier.

If you have a 1.5M balance sheet, you can pay yourself 120k euros in dividends annually at an effective tax rate of only 7.5%.

Let’s just say that small businesses and professionals have very good lobbyists. An employee making 120k / year pays over 40% tax.

This creates a tremendous incentive for professionals to incorporate and use every trick in the books to build up a larger balance sheet on paper.

[hrududuu]

This type of comparison needs to add corporate income tax (20%) in order to be an apples to apples comparison,so 27.5. It's still a stark difference in taxation, and I know of no other country that does what Finland does for dividend taxation. In fact for earned income,things look even uglier when you add in tax-like social security contributions.

Perhaps not coincidentally, Finnish companies are also an outlier in paying extremely high dividends.