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1. In Finland Taxation of an individual's income is progressive.In other words, the higherthe income, the higher the rate of tax payable.

2. In 2012 the income tax rate (national tax) for an individual is between 6.5%-29.75%.This tax is payable by an individual on his or her income and it fluctuates

between 16.25% - 21.75% depending on the municipal authority.

3. Church tax of 1%- 2.15% is also payable.

4. Foreign residents generally pay 35% on salary income and 30% on dividend, interest androyalties income. Reduced rates of tax or exemption are available for certain income

earners.

5. The standard rate of Finland corporate tax in 2012 is 24.5%.

6. An individual is liable for tax on his income as an employee and on income as a self-employed person.

7. Tax will be payable on income earned in Finland and overseas by an individual whomeets the test of a "permanent resident" of Finland.

8. A Finnish resident, who receives a salary overseas and lives overseas continuously for atleast 6 months, is exempt from tax on certain conditions.

9. A foreign resident who is employed in Finland pays tax only on income earned inFinland.

10.To be considered a Finnish resident, the taxpayer must be able to show that his or her lifeis centered in Finland and / or that they have lived in Finland continuously for 6 months.

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11.In regard to income from a salary, an employer is obligated to deduct the amount of taxdemanded each month.

12.A self-employed person is obliged to make advance payments of income tax that will beoffset on submitting an annual return.

13.The advance payments are determined according to the return for the previous year. Inthe event of a new business, the advances will be calculated according to the estimate of

the owner of the business.

14.Offset of losses - A loss may be offset forward for 10 years ,restricted if more than 50%of the company's shares are transferred in the year of loss. There is no carryback for

losses.

15.Transactions between affiliated parties when the sum of the transaction is significantlyhigher than the market price are not allowable.

16.In most cases, VAT is 23%.

17.There are reduced rates of VAT of 13% charged on food restaurants and catering and asuper reduced rate of 9% charged on public transport services, books ,minor repairs and

medicines.

18.VAT is charged on assets and services in Finland as well as on imports into Finland.

19.VAT returns are made monthly, the payment being due on the 15th of the month after themonth of the report.

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20.There is an obligation to report to VAT authorities when the annual turnover is in excessof EURO 8,500.

21.Tax is payable in Finland on both an inheritance and on gifts on the application of fairlysimilar tax principles.

22.As a general rule, recipients of gifts / heirs are divided into two groups:- Group1- a spouse, children, grandchildren and parents.

- Group 2 - all others.

23.In general, the rate of tax for Group 2 is much higher than Group 1.The tax rates forgroup 2 are 20%-32%.

24.In Finland there is a Double Tax Prevention Treaty on inheritance tax with the NordicCountries, the United States of America, Holland, France and Switzerland.

25.The rate of tax varies among the local authorities and fluctuates between 0.12% and1.35%.

26.For real estate that is used as a permanent residence, the rate of tax is 0.22% - 0.5%.

27.The rate of tax:a. transfer of real estate: 4%b. transfer of securities: 1.6%.

28.There is an exemption on the transfer of real estate when the purchaser is between 18 and39 in age and the real estate serves as his or her first permanent place of residence.

29.The transfer of securities traded on the Stock Exchange is exempt from tax.

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30.The date for payment of the taxa. For securities, within two months of the date of the transaction.b. For real estate, within 6 months of the date of the transaction.