The forest gift deduction allows forest owners who have received a forest estate as a gift or through a gift-like sale to deduct part of the gift tax for the estate from their wood trade income. The amount of the forest gift deduction is based on the gift tax paid. The forest gift deduction is made in the forest owner’s capital income taxation.
A minimum surface area, determined on the basis of the municipality in which the forest is located, has been defined for the forest gift deduction. In practice, the forest area transferred must exceed 20 hectares in southern Finland and 100 hectares in northern Finland for there to be an adequate tax base for the forest gift deduction. The surface area is determined per donee, and all the forest land included in the same gift can be taken into account in the surface area. Since the forest gift deduction is only granted for inter vivos gifts, and not in connection with inheritance, it encourages planned generational handover of forest estates.
Calculator for assessing the amount and tax impact of the forest gift deduction
Use this calculator to assess the amount and tax impact of the forest gift deduction for your forest estate.