Finland

Significant changes to transfer taxation entered into force in the beginning of 2024. Among other changes, all transfer tax rates were reduced as of 1 January 2024. These new rates are applied retroactively to acquisitions made on or after 12 October 2023.

Taxpayer can receive an additional deduction of 45% on research and development (R&D) costs for the first time in tax year 2024 based on an increase in the amount of R&D activities.

As for real estate taxation, the minimum tax rate applicable to all land areas will be increased to 1.30% from 2024 onwards.

Pillar Two legislation was approved by the Finnish Parliament on 11 December 2023 and is in force for financial years starting on after 31 December 2023.

Significant changes to VAT rates are planned to enter into force in 2024 and 2025. The standard VAT rate will be increased from 24% to 25.5% as of 1 September (law not yet enacted). The Finnish government has also proposed that all goods and services except newspapers and magazines subject to the reduced VAT rate of 10% would be moved to the reduced rate of 14% as of 1 January 2025. In addition, VAT rate of sweets (currently 14%) is proposed to be increased to the standard rate of 25.5% during 2025. 

Please find more information on the following pages of this tax summary.