On 31 July 2020, the Finnish Tax Authority has published updated guidelines on the base and reference rate for tax purposes One of the key aspects of the update is in regard to interest due for late payment, which includes that interest on arrears and default interest shall be provisionally 2.5% for taxes included in facilitated payment arrangements or deferral of payments initiated on 25 March to 31 August 2020. This applies with respect to VAT due after 1 January 2020 and 1 March 2020 for other taxes. The 2.5% reduced rate will apply for as long as the payment arrangement is in force.
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