This page provides information on the upcoming reforms that will affect taxation in Finland.
An accelerated schedule of depreciation expenses will be accepted for tax purposes for the 2020, 2021, 2022 and 2023 taxable years. The assets concerned by the changed rules are machines used for business and agriculture.
The accelerated schedule allows max. 50% depreciation on the purchase price of a machine (at present, the highest depreciation permitted by tax laws is 25%).
From tax year 2020, the income received by corporate entities is longer taxed differently depending on “source”. Almost all income will be assessed in accordance with the act on the taxation of business income (Laki elinkeinotulon verottamisesta 360/1968), regardless of the nature of the corporate entity’s business operations.
The way tax at source is withheld on dividends paid on corporate stock will change. The change affects the dividends received by shareholders that have a nominee account.
The Tax Administration is looking to improve the VAT return and VAT reporting in the next few years. In future, the information needed in VAT reporting could be retrieved automatically from the companies’ financial management systems based on invoice and receipt details. Automated reporting would also make it possible to prepare pre-completed VAT returns for small companies.
The VAT special scheme Mini One Stop Shop will be expanded into the One Stop Shop scheme. The One Stop Shop scheme will be adopted on 1 July 2021.
Individual and corporate taxpayers in the Åland Islands will be liable to pay a new Åland Islands media fee starting in tax year 2021. The media fee is similar to the public broadcasting tax collected in mainland Finland.
For individual taxpayers, the media fee will be included for the first time in the tax card for 2021. For corporate taxpayers, it will be included in the prepayment decisions for 2022 and the tax decisions for 2021.