Tax reforms

This page provides information on the upcoming reforms that will affect taxation in Finland.

Accelerated depreciation

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%). 

Sources of income, as accounted for in corporate taxation

From tax year 2020, the income received by corporate entities is longer taxed differently depending on “source”. When the changes in legislation have gone into effect, 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.  

New annual information returns for 2020

Financial entities must provide the Tax Administration with annual information on the equity savings accounts they have opened for their clients in 2020. In the same way, operators of online platforms for various services must provide information on the payments they have made to sellers.  

Amendment to the Act on the taxation of nonresidents’ income

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.

VAT reporting rules

The Tax Administration will revise the VAT return and related reporting requirements. The scope of information content will be expanded on the VAT return. Taxpayers will be required to provide more information than today.

The planned introduction date for the revised VAT return form is 2022. VAT reporting will later undergo further changes, as the tax authorities will start gathering detailed information on each invoice and receipt.

VAT special scheme to expand

The VAT special scheme Mini One Stop Shop will be expanded into the One Stop Shop scheme. The expanded scheme was originally intended to be introduced on 1 January 2021, but the European Commission has proposed a delay of 6 months.