• Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/19/2013

Finland - Proposed tax changes for 2014-2017 

June 19:  Under the proposed plan of Finland’s government for 2014–2017, changes proposed to corporate and capital income taxation include:
  • A reduction in the rate of corporate income tax to 20%, effective for the 2014 tax year
  • Repeal of tax incentives enacted for 2013-2015 concerning additional deductions for research and development (R&D) costs and additional depreciation on production-related investments, with repeal to be effective at the end of 2014
  • Repeal of a deduction currently allowed companies for up to 50% of their representation costs
  • Rules requiring itemization of depreciation of long-term investments
  • Limitation of company’s right to deduction interest expenses
  • Changes to the taxation of dividends received by individuals, including a proposal that 85% of dividends received from listed companies being taxed as capital income
  • Introduction of a windfall tax in 2014
  • Changes to earned income and to the inheritance and gift tax regimes

The government’s proposals currently do not include changes to the value added tax (VAT), but do propose increases to several excise tax rates.

Read a June 2013 report prepared by the KPMG member firm in Finland: Government’s decision on spending limits for years 2014–2017

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