All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Finland: Finnish government considers new tax incentives

In October 2011, major Finnish trade unions and employers’ organisations agreed on the conditions of a new framework agreement. To support the tendencies of both parties, the Finnish government made suggestions regarding amendments in corporate and individual taxation.

The intention of the government was both to support the competitiveness of the Finnish industry and to improve employment and purchasing power. The suggestions were made in addition to the recent government’s Bill relating to the budget for 2012, suggesting several changes in different tax areas. It has already been suggested that the Finnish corporate income tax rate be decreased to 25% as of the beginning of 2012. Now the Finnish government has suggested a further decrease of 0.5%, which would reduce the corporate income tax rate to 24.5% from the start of next year. Personal income taxation will be less to compensate for the rise in employee pension payments. The government would also cancel the suggested increases in unemployment insurance contribution rates.

To support companies operating in energy-intensive branches, the government suggested the energy taxation be lowered by the implementation of an energy tax cutter at the beginning of 2012. In addition to that, the government announced it would conduct research relating to the possibility of implementing a R&D tax incentive system or a tax incentive system for start-up companies. The objective of the government is to implement the tax incentive system in the beginning of 2013.

The suggestions made by the Finnish government are provisional; the realisation of which depends on the budget and labour negotiations. Possible changes in Finnish tax legislation may enter into force at the beginning of 2012.

Janne Juusela (janne.juusela@borenius.com)

Borenius – Taxand

Tel: +358 9 615 333

Website: www.borenius.com

More from across our site

Tax professionals have called on the UK government to reconsider its online sales tax as it would affect the economy at the worst time.
Tax professionals have called on companies to act urgently to meet e-invoicing compliance targets as the EU plans to ramp up digitisation.
In the wake of India’s ambitious 25-year plan for economic growth, ITR has partnered with leading tax commentators to discuss what the future will look like for India and for the rest of the world.
But experts cast doubt on HMRC's data and believe COVID-19 would have increased the revenue shortfall.
EY’s plan to separate its auditing and consulting businesses might lessen scrutiny from global regulators, but the brand identity could suffer, say sources.
Multinationals are asking world leaders to put a scale on carbon pricing to tackle climate change at the 48th G7 summit in Germany, from June 26 to 28.
The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
This week the Biden administration has run into opposition over a proposal for a federal gas tax holiday, while the European Parliament has approved a plan for an EU carbon border mechanism.
12th annual awards announce winners
Businesses need to improve on data management to ensure tax departments become much more integrated, according to Microsoft’s chief digital officer at a KPMG event.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree