Finland

Corporate - Significant developments

Last reviewed - 31 December 2021

Several significant corporate tax developments have entered into force in the beginning of 2022. The new rules concerning, for example, additional deductions on certain subcontracting research and development (R&D) costs (in 2022-2027) and additional limitations on the right to deduct interest expenses are applicable from financial year 2022 onwards. In addition, reverse hybrid entities' income became subject to tax.

Further, Finland has implemented revised regulation on transfer pricing adjustment, which is effective as of 1 January 2022. The revised regulation has broadened the scope of the transfer pricing adjustment provision and brought it in line with the Organisation for Economic Co-operation and Development (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.

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