On 9 September 2021, the Ministry of Finance of Finland has released the government’s budget proposal for 2022 including following tax measures.
- Companies may make an extra deduction of 150% in their taxation for 2022-2027 for research and development expenditure that is based on research and development cooperation between companies and research organisations.
- To support growth and investments, the Government is extending the temporary double depreciation rules for machinery and equipment to 2024–2025.
- Restrictions on interest rate deductions will be eliminated for public infrastructure projects.
- The provisions on the limitation of deductibility of interest expenses will be reformed by restricting the application of the balance sheet exemption from the beginning of 2022 so that the provisions effectively prevent the transfer of taxable income outside Finnish taxation in private equity structures.
- The transfer pricing adjustment provision will be revised from the beginning of 2022 so that it can be applied within the scope of the OECD Transfer Pricing Guidelines.
