Finland’s parliament has passed amendments to the Minimum Tax Act. The Act is amended to incorporate the latest OECD guidance on Pillar Two rules. The key changes include clarifying certain provisions of the law, simplifying minimum tax calculations, and implementing the transitional undertaxed profits rule (UTPR) safe harbour, etc.
The Act is set to take effect by 31 December 2024 and will apply to financial years commencing on 1 January 2024
The Minimum Tax Act implements the Pillar Two global minimum tax. It was approved on 28 December 2023 in accordance with the Council Directive (EU) 2022/2523 of 14 December 2022.
This follows after Finland’s government presented the draft legislation to the parliament to amend the Minimum Tax Act on 20 September 2024.
