Finland: Finnish government considers new tax incentives
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

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 (

Borenius – Taxand

Tel: +358 9 615 333


more across site & bottom lb ros

More from across our site

Amount B is meant to increase simplicity and reduce uncertainty, but US TP specialists claim it may lead to controversy
Tax Foundation economist Alan Cole also signalled that pillar two has a 'considerable chance' of failing
The Labour Party is working hard to convince business that it will bring stability to tax policy if it wins the next UK general election. But it will be impossible to avoid creating winners and losers
Burrowes had initially been parachuted into the role last summer to navigate the fallout from the firm’s tax leaks scandal
Barbara Voskamp is bullish on hiring local talent to boost DLA Piper’s Singapore practice, and argues that ‘big four’ accountants suffer from a stifled creativity
Chris Jordan also said that nations have a duty to scrutinise the partnership structures of major firms, while, in other news, a number of tax teams expanded their benches
KPMG has exclusive access to the tool for three years in the UK, giving it an edge over ‘big four’ rivals
But the US tax agency’s advice is consistent with OECD guidance and shouldn’t surprise anyone, other experts tell ITR
A survey of more than 25,000 in-house counsel reveals that diversity initiatives are a high priority when choosing external counsel
The report is aimed at helping 'low-capacity countries', the OECD has claimed
Gift this article