On 12 August 2020, the Finnish Ministry of Finance announced the 2021 budget proposal including following tax measures.
- A temporary incentive R&D tax deduction for 2021-24 for business investments in intangible assets, with an additional deduction of 50% of the costs for qualifying R&D between 2021 and 2024.
- Increase the excise duties on tobacco products and alcoholic beverages;
- Reduce the industrial electricity tax, which eliminates the electricity tax rebate;
- Provide a temporary tax exemption for electric car charging;
- Increase the VAT threshold to 15,000 euros (US$17,719), beginning Jan. 1, 2021;
- Reduce the tax subsidy for qualified diesel and heating fuels;
- Provide tax-free business travel for amounts up to 3,400 euros (US$4,016); and
- Provide a 750 euro (US$886) maximum tax exemption for employment bicycle benefits
