Finland

Several significant corporate tax developments have entered into force in the beginning of 2023. The new rules concerning, for example, a permanent tax incentive on certain research and development (R&D) costs and additional limitations on the right to deduct interest expenses are applicable from financial year 2023 onwards. Furthermore, a new provision to extend the capital gains taxation of non-resident companies investing in Finnish real estate came into effect on 1 March 2023 and applies to all indirect real estate disposals by non-residents.

As for value-added tax (VAT), Finland has reduced the VAT rate of electricity to the reduced rate of 10% for the period of 1 December 2022 to 30 April 2023. Additionally, for the period of 1 January 2023 to 30 April 2023, Finland has exempted passenger transport from VAT by allowing the application of the zero VAT rate.

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