What will change in taxation in 2024?News, 1/8/2024
In 2024, there will be changes to deductions as well as to other aspects of taxation. Some of the planned changes are legislative amendments proposed by the government but not yet debated in the parliament. For more details and up-to-date information, go to vero.fi/changes. Any further changes that may be later introduced to the government proposals will also be updated on that site.
Changes for individual taxpayers: For example, the deduction for commuting expenses will change. The deduction will decrease in 2024 because its threshold is raised from €750 to €900 and the temporary increases to the deduction will no longer be in effect. The maximum amount of the deduction will be €7,000 (compared to €8,400 in 2023). The Tax Administration has also published its official decisions on tax-exempt reimbursements of travel expenses in 2024 (daily allowance, meal allowance, kilometre allowance) and on fringe benefits (such as employer-provided accommodation, company car, meals, telephones).
Changes to the tax credit for household expenses: The temporary increases to the credit will remain in force in 2024. You can get the increased credit for expenses related to household work, nursing and care, and to the replacement of oil heating. In 2024, you will also be able to get the credit for household expenses for physical and occupational therapy.
Changes to transfer tax: The rates of transfer tax for homebuyers will be lowered. The government has proposed these changes to be applied retroactively from 12 October 2023 onwards. If you have bought or sold an apartment in late 2023 and paid too much transfer tax on it, the Tax Administration will refund the excess amount to you. Refunds will be paid out in early 2024. First-time homebuyers will no longer be exempt from transfer tax as of 1 January 2024.
Changes to real estate tax: The minimum rate of tax on the land where the real estate is located will be raised from 0.93% to 1.30%. This will raise taxes in municipalities where the minimum rate has been lower than 1.30%. The change does not apply to the Åland Islands.
Changes to investments: The maximum amount that can be deposited to an equity savings account will be increased to €100,000. Previously, the limit was €50,000.
Changes to inheritance tax: The time limit for paying inheritance tax will be extended from 2 years to 10 years. However, the schedule of the due dates of tax payments will not change. In practice, this change means that, for example, inheritance tax will not be collected through enforcement until 10 years have passed since the first due date. Despite this change, late-payment interest must still be paid on the tax starting from the due date.
Changes to late-payment interest and credit interest: The rates of interest will increase in 2024. This means that if you have unpaid taxes, you will have to pay more interest on them starting from 1 January 2024. The late-payment interest on inheritance tax is raised to 7.5% and on other taxes to 11%. In 2023, the late-payment interest rate was 7% for all taxes. Correspondingly, you will receive a higher interest on your tax refunds: the credit interest is raised from 0.5% to 2%.
Changes for corporate taxpayers: For example, companies will be able to claim an extra additional deduction for research and development. The extra deduction is a continuation of previous deductions for R&D activities.
For multinational groups, a significant upcoming change is the introduction of the minimum tax rate (OECD Pillar Two). This change affects the income taxation of multinational enterprise groups, regardless of which countries the group companies are located in. The new tax raises the tax rate on all group companies to at least 15%.
Banks and other payment service providers within the EU will be obligated to report cross-border payments. The goal is to reduce VAT fraud in international e-commerce and secure fair competition between companies.
Changes to excise taxation: For example, excise duty rates on alcohol will change. The excise duty on wines and spirits will be increased, and the excise duty on beer will be decreased. Excise duty on tobacco must be paid on nicotine pouches and on smokeless nicotine products in liquid form. The excise duty on certain fuels will be decreased.
Changes to MyTax: Prepayment instalments can be changed in MyTax so that the prepayments are distributed evenly for each month of the year.
Changes to APIs: New data can be submitted via the APIs. For example, an API will be introduced in 2024 that companies or digital platforms can use to report rental income on behalf of landlords.
For more information, see vero.fi/changes
This page was last updated on 8 January 2024: Changes to real estate tax do not apply to the Åland Islands.