PRIVATE INVESTORS in Finland will gain access to a new kind of equity savings account as of the beginning of 2020.
The Finnish Parliament on Wednesday approved a proposal to establish the new account, to which private investors will be able to deposit up to 50,000 euros for investing in the shares of domestic or foreign companies listed on a stock exchange or Nasdaq First North, an alternative stock exchange for smaller companies in Europe.
The account holders will have the opportunity to re-invest dividends paid to the account without incurring any taxes, thus benefiting from the compound interest effect. They will not, however, be able to deduct losses on investment until the account has been closed, all the assets have been sold and the proceeds withdrawn.
The account has also been marketed as a hassle-free way to invest, as all information about the savings, rise in their value and withdrawals will be provided automatically to the Finnish Tax Administration.
Aleksi Teivainen – HT
Source: Uusi Suomi