Solidium as a tax payer
The State owner requires that all companies in which it is a majority shareholder itemise the taxes paid per country.
Solidium’s tax matters are managed as part of its financial administration. Any significant observations and measures related to tax matters and risks are reported to the company’s Board. We also monitor the tax reporting of our portfolio companies as part of our corporate responsibility analysis.
Solidium’s Board regularly reviews its policies concerning tax payment and responsibility matters as an owner. We work to promote practices which enhance transparency and openness in the governance and reporting of our portfolio companies.
Finland is Solidium’s only country of operation, so income tax is paid to Finland only. Solidium also owns shares in two Swedish companies (SSAB and Telia Company). Our SSAB holding exceeds 10 per cent, and therefore the dividends paid by the company are tax-exempt. Our holding in Telia Company is less than 10 per cent, so the dividends paid by the company are subject to a withholding tax of 15 per cent in Sweden.
For the financial year of 1 July 2015–30 June 2016, Solidium paid a total of EUR 8.2 million income tax pursuant to the Business Income Tax Act paid in Finland and a tax of EUR 3.4 million was withheld on Telia Company’s dividends in Sweden. In addition, Solidium paid EUR 0.5 million in employer contributions. The taxes paid by the personnel on salaries totaled EUR 0.7 million. Based on the request for rectification filed by Solidium concerning tax years 2012–2014, the tax authorities issued a tax refund of EUR 36 million in June 2016, because share impairments are considered tax-deductible.