In its recently published 2025 Mid-Term Policy Review, the Finnish Government has announced significant corporate tax reforms aimed at boosting economic growth, attracting investment, and fostering innovation.
Key changes include:
Corporate Income Tax: Rate cut from 20% to 18% starting 2027; loss carryforward extended from 10 to 25 years (from 2026 losses).
Private Equity/Venture Capital: Tax procedure simplification for foreign investors; tax exemptions for non-profit investments; new fund structures aligned with international and EU standards.
Growth Companies: Improved tax treatment for stock options and equity incentives by 2026; tax-neutral share-for-share rules expanded; impatriate tax rate reduced from 35% to 25%.
Other Measures: Continued clean transition investment tax credit; extended tax relief for business succession to minors; phased real estate tax reform to reflect market values.
