Starting 2015, and subject to certain restrictions, foreign corporate entities comparable to Finnish pension institutions are entitled to a similar deduction. Under the provisions of Business Tax Act, Finnish pension institutions may deduct the expenses, calculated by actuarial principles, necessary for the coverage of their liability to pay out pension benefits as agreed.
Foreign corporate entities may deduct the part of their expenses that corresponds to the share of their turnover consisting of their received dividends from Finland. They must provide the Finnish Tax Administration a calculation outlining the amount to be deducted. The deduction rights are only applicable to the returns received from investment in corporate stock, which must be entered in the balance sheet as investment assets.
The changes to the taxation have been made in order to ensure the compliance of Finnish tax rules with EU law. The law is in force as of 1 January 2015.
