On 16 December 2020, the tax authority of Finland has released an overview of tax changes for 2021. The changes related to corporate tax matters are summarized below:

  • The final losses of a subsidiary located in another EEA state be taken into account by a group deduction in the taxation of the Finnish parent company. The deduction would be made in the tax year in which the subsidiary is dissolved. The deduction would be possible for the first time in the 2021 tax return. 
  • A person engaged in business or agriculture may make increased depreciation of new machinery and equipment included in fixed assets in the taxation of tax years 2020-2023.
  • Tax relief for employee issues of unlisted companies.
  • The foreign entity is generally taxable in Finland on the basis of the actual place of business as of 1 January 2021. With the amendment to the law, a foreign entity whose actual place of management is located in Finland is also generally considered a taxable person in Finland.
  • Additional reduction in research and development activities.
  • Certain non-monetary support measures for nature conservation, water and marine management are exempt from income tax.
  • Certain non-monetary support measures for nature conservation, water and marine management are exempt from income tax.