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

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

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

Employment rate (%) January 2013

Total (15-64 year olds)

Men Women

66,9 67,1 66,7

Unemployment rate (%) January 2013

Total (15-64 year olds)

Men Women

8,7 9,6 7,6

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

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.

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

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.

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

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

- for individuals who are tax residents of the Russian Federation

- for individuals who are not tax residents of the Russian Federation.

Some types of income are taxed at different rates:

35%9%

15%30%

For years of service;

Disability; Survivor; Social; Old age.

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

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.

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.

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

TAX BASE (PLN - EUR) TAX %

< 82 528.00 – 19 842.57 18%

> 82 528.00 – 19 842.57 32%

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.

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

Old age pension:PLN 1471.30 (355.03 €)Disability pension:PLN 1096.34(264.55 €)Survivors’ pension:PLN 1292.07 (311.78 €)

Overall rate of 59% 66% of men and 53% of women are

employed

Average of 44 hours a week 5 days a week 2 free days: Sunday and a day chosen

by the employer