Finland’s Ministry of Finance initiated a public consultation on proposed changes to the Minimum Tax Act on Monday, 12 August 2024.

The Minimum Tax Act was passed at the end of 2023. It implements the Pillar Two global minimum tax in line with Council Directive (EU) 2022/2523 of 14 December 2022. The law on the minimum tax for large corporations entered into force at the beginning of 2024.

The law aims to ensure that large groups with an annual turnover of at least EUR 750 million pay at least 15%  tax on their defined profits internationally. The proposal proposes changes to the current law, the background of which is the OECD guidelines published in 2023.

In addition, the method of calculating the minimum tax would be simplified, and the law’s presumptive rules would be specified and added.  The current principles of the law would remain unchanged. No changes are proposed to the scope of the law, the basis of calculation or the minimum tax rate.

The Ministry of Finance sent the proposal to the opinion round on 12 August 2024. The comment period ends on 6 September. The changes in the law are supposed to come into force by the end of 2024 and would apply to financial periods that started on or after 1 January 2024.