What will change in taxation in 2025?

Next year will involve a number of significant changes to taxation. From 2025 onwards, tax cards will enter into force in January. This will make it easier to keep track of the tax rate and income ceiling. The credit for household expenses will decrease. The filing deadlines for individual tax returns will be earlier than before, in April. In VAT, there will be changes to both the VAT rates applied to goods and services as well as to the VAT assessment of small businesses.

Tax cards will be valid from the beginning of the year, i.e. from 1 January onwards. Previously, tax cards became valid on 1 February. From now on, the income ceiling stated on the tax card is also calculated for the full year, i.e. a period of 12 months. This is change has been long requested by taxpayers, since it makes it easier to determine the tax rate and keep track of the income ceiling.

The tax credit for household expenses will change in a number of ways. The maximum amount of credit will decrease to €1,600. The creditable percentage shares of expenses will also decrease. The credit threshold will increase from €100 to €150. However, you will still be able to claim increased credit for replacing oil heating.

The deduction for commuting expenses will remain the same as in 2024, i.e. up to €7,000. The credit threshold will remain at €900.

The filing deadlines for pre-completed tax returns will be earlier than before starting next spring. In 2025, the filing deadlines will be 15 April, 22 April and 29 April. You will receive your pre-completed tax return in MyTax by 27 March. If you have not yet activated Suomi.fi Messages and opted for electronic communication with officials, you will receive the return by post. The due date for checking real estate tax returns will also be earlier, on 15 April. The filing deadlines for corporate tax returns will not change.

Late-payment interest and credit interest will increase by 0.5 percentage points. If inheritance tax is paid after the due date, the late-payment interest will be 8%. For other tax types, the late-payment interest will be 11.5%. Late-payment interest with relief will be 6.5% and the credit interest paid on tax refunds will be 2.5%.

The application of certain VAT rates will change as of 1 January 2025. Goods and services currently subject to reduced VAT of 10% will in future be subject to reduced VAT of 14%. However, the change will not concern newspapers and magazines or public broadcasting. Sanitary protection products and children's diapers, currently subject to 25.5% VAT, will be subject to reduced VAT of 14% in future. Another change currently prepared concerns candy and chocolate, whose VAT rate would rise from 14% to 25.5%. This change is planned to enter into effect on 1 June 2025.

The turnover threshold for corporate VAT liability will increase and the VAT relief for small businesses will end. In future, companies are required to register for VAT if their turnover exceeds €20,000. In addition, the relevant turnover will be calculated based on the calendar year’s turnover as opposed to the accounting period’s turnover. The previous year’s turnover will also be taken into account in these calculations. In 2024, the threshold was €15,000.

The Finnish VAT relief for small businesses will no longer be granted from the beginning of next year. Companies whose turnover for 2024 does not exceed €30,000 can still request the relief for 2024.

In addition, a new VAT scheme for small businesses will be introduced in the EU. The new scheme will expand the VAT exemption granted to small businesses to companies established in other EU countries.

Excise duties for products such as cigarettes and spirits will be increased in phases between 2025 and 2027.

For more information about changes in 2025, see vero.fi/changes