Report by the working group for the taxation of public utility institutions

Proposed corrective measures for problem areas in the taxation of public utility institutions

Summary

The purpose of the working group was to examine problem areas in the taxation of public utility institutions and to present measures to address the problems.

The working group made suggestions on the interpretation of existing provisions and, using examples, described various situations where activities can be construed as tax-exempt or taxable. The aim is to increase tax predictability and legal certainty, which in turn facilitate the operation of public utility institutions.

The main themes covered were the general economic interest of public utility institutions, the nature of their operation, property income and concessions granted on the basis of special legislation. The working group also evaluated selected separate items, such as the taxation of unpaid work. The working group also took VAT into account in the themes it covered.

In the case of general economic interest of public utility institutions, the working group evaluated how the performance of economic activities impacts the assessment of the nature of general economic interest, and the general economic interest involved in organised practice of social and recreational activities nowadays. The working group also examined the way grants are allocated by different foundations and their degree of general economic interest.

In the context of economic activities, the working group examined the general indicators of economic activity and the nature of economic activity especially in educational activities, in the social sector and in field of culture. The working group presented its position on how public funding and the implementation of general economic activity impact the assessment of economic activity.

Issues related to property income addressed by the working group consisted of the general use of property and the general economic interest of property use at present, and the source of property income when premises are being used by a public utility company.

In addition, for the purposes of follow-up work, the working group indicated problems in existing provisions related to competitive neutrality and other issues.

Language versions

• Yleishyödyllisten yhteisöjen verotus
  31.08.2009
• Promemoria från arbetsgruppen för beskattningen av allmännyttiga samfund
  31.08.2009

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