Finland’s Ministry of Finance has initiated public consultation on two proposed tax reforms on 27 March 2025.

Interest exemption for infrastructure projects

The Business Tax Act limits the ability to deduct interest for tax purposes, which aligns with the EU Anti-Tax Avoidance Directive (ATAD) exemption designed to combat tax evasion. The restriction currently includes exemptions for social housing and specific public infrastructure projects. The proposed reforms would extend this exemption to cover interest on loans used to fund long-term infrastructure projects deemed essential for ensuring the security of supply.

The deadline to receive comments on the interest deduction limit is 30 May 2025.

Proposed reform to increase forest deduction limits by 2026 

This proposed reform would raise the forest deduction limit from 60% to 75% of taxable forestry income received by a taxpayer and increase the maximum deduction to 75% of forest property acquisition costs. If approved, it would take effect in early 2026 and apply to 2026 taxation.

The deadline to receive comments on the interest deduction limit is 9 April 2025.