A Guide to Corporate Taxes in Finland

What Is the Corporate Tax Rate in Finland?

Finland taxes corporate profits at a flat 20%, confirmed by the Finnish Tax Administration (vero.fi). The rate applies to limited liability companies, cooperative societies, and other corporate entities. There are no tiered rates, no size or turnover brackets, and no municipal income tax on companies. Corporate entities are independent taxpayers, so profit is taxed at the company level, not passed through to shareholders.

Individuals pay municipal tax in Finland, but companies do not. That keeps corporate income tax a single national charge.

Will Finland Cut the Corporate Tax Rate in 2027?

The Finnish Government has proposed cutting the CIT rate from 20% to 18%, first applying in tax year 2027, per the valtioneuvosto.fi government announcement. It is a proposal, not enacted law. As of October 2026 the bill sits with Parliament’s Finance Committee tax subcommittee, per Eduskunta, Finland’s parliament.

Plan on 20% until Parliament adopts the 2027 Budget in its December session.

What Other Taxes Do Companies Pay in Finland?

Beyond the 20% CIT, companies face real estate tax, transfer tax, the YLE public broadcasting tax, value-added tax (VAT), and, for large groups, Pillar Two top-up tax. Rates and triggers differ by levy, as the Finnish Tax Administration (vero.fi) sets out below.

The reduced transfer tax rates took effect 1 January 2024 but apply retroactively to contracts signed on or after 12 October 2023, per vero.fi.

What Is the VAT Rate in Finland?

Finland’s standard VAT rate is 25.5%, raised from 24% on 1 September 2024, among the highest in the EU, per the Finnish Tax Administration VAT rate page. Reduced rates of 14% and 10% apply to specific categories such as food, restaurant services, books, medicines, and passenger transport. Exports and intra-community supplies are zero-rated.

Finland’s domestic VAT registration threshold is \u20ac20,000 in annual turnover from 1 January 2025, after the EU small business (SME) VAT scheme changes, per vero.fi. VAT is a consumption tax on sales, separate from the 20% CIT on profit.

How Does Finland Tax Foreign Companies?

Resident companies pay 20% on worldwide income, while non-resident companies pay Finnish tax only on Finnish-source income, per the Finnish Tax Administration (vero.fi). Since 2021, a place-of-effective-management (POEM) test applies: a foreign-incorporated company managed from Finland can become Finnish tax resident and be taxed on its worldwide profit.

What Counts as a Permanent Establishment in Finland?

A fixed place of business, a dependent agent, or a construction site beyond the treaty threshold period creates a permanent establishment (PE) in Finland, taxed at 20% on income attributable to it, per vero.fi. A subsidiary is a separate Finnish resident entity. A branch is a PE of the foreign parent, not a separate company.

What Are the Tax Obligations When Setting Up a Company in Finland?

Register with the Finnish Trade Register (PRH) and the Finnish Tax Administration, then obtain a Business ID (Y-tunnus). From there, register for VAT, the prepayment register, and the employer register as each applies to your operations. These registrations open the accounts a company files and pays through.

Commenda’s incorporation service and entity management platform handle these registrations end to end. Check a name first with the company name checker, and confirm counterparties with global tax ID verification.

How Do You File a Corporate Tax Return in Finland?

Limited liability companies and cooperatives file Form 6B through MyTax, the Finnish Tax Administration’s digital platform, for every accounting period, including periods with zero activity, per vero.fi. Dormant companies must still file. Required documents include Form 6B, financial statements, and schedules for deductions, depreciation, R&D claims, and intercompany transactions. E-filing is effectively mandatory; paper is accepted only in exceptional cases.

Step-by-Step: Filing a Corporate Tax Return in MyTax

1. Close the accounting period and finalize the financial statements.
2. Reconcile the prepayments already made during the period.
3. Complete Form 6B in MyTax.
4. Attach the financial statements and supporting schedules.
5. Submit within the four-month window.
6. Receive the assessment decision, then pay any back taxes or receive a refund.
7. Use the additional prepayment (lis\u00e4ennakko) option to top up before assessment and avoid interest.

When Is the Corporate Tax Filing Deadline in Finland?

The return is due within four months after the end of the final calendar month of the accounting period, per the Finnish Tax Administration (vero.fi). An accounting period ending 15 July means a 30 November deadline. The tax assessment concludes no later than 10 months after the period ends.

An accounting period is usually 12 months and can differ from the calendar year. It can run up to 18 months in a company’s first or final year. Two or more periods ending in the same calendar year are combined for tax purposes.

How Do Corporate Tax Prepayments Work in Finland?

Finland collects CIT in advance through prepayments the Finnish Tax Administration schedules from the prior year’s assessed income, per vero.fi. The number of installments depends on the amount owed. Companies can top up voluntarily or adjust prepayments in MyTax when the profit forecast changes during the year.

What Are the Penalties for Late Filing in Finland?

Late filing triggers a late-filing penalty or a punitive tax increase, and late-payment interest applies to unpaid tax after the due date, per the Finnish Tax Administration (vero.fi). Late-payment interest runs at 11.5% for most taxes (the 2025 rate), and vero.fi resets it annually, so confirm the current figure before you pay.

What Withholding Taxes Apply in Finland?

Finland withholds tax on certain payments to non-residents, and treaties or EU directives often reduce or remove it, per PwC Worldwide Tax Summaries (Finland). Dividends, royalties, and capital gains on Finnish real estate carry domestic withholding tax (WHT) rates, while most interest is exempt.

The EU Parent-Subsidiary Directive and the Interest and Royalties Directive can give full relief on qualifying intra-EU payments.

What Tax Incentives and Deductions Does Finland Offer?

Finland’s headline incentive is the research and development (R&D) super-deduction: a 100% base deduction plus a 50% extra deduction, 150% total, per the Finnish Tax Administration (vero.fi). It rises to 250% for R&D bought from Finnish universities and research institutes such as VTT, Finland’s state research centre. An incremental extra deduction applies when R&D spend rises year over year.

How Do Finland’s Double Taxation Treaties Work?

Finland has concluded over 75 double taxation treaties that stop the same income being taxed in both Finland and a partner country, per the Finnish Ministry of Finance. The treaties follow the OECD (Organisation for Economic Co-operation and Development) Model Tax Convention, and most cut withholding tax on dividends, interest, and royalties below domestic rates.

The Nordic Tax Convention adds special provisions among Denmark, Iceland, Norway, and Sweden. Finland ratified the OECD Multilateral Instrument (MLI) in 2019, updating many treaties at once. EU directives give full relief on qualifying intra-EU payments. A UK parent claims relief under the UK\u2013Finland treaty after Brexit, but without EU directive relief.

Does the Pillar Two Global Minimum Tax Apply in Finland?

Yes. Finland applies a 15% qualified domestic minimum top-up tax (QDMTT) for fiscal years starting on or after 31 December 2023, hitting multinational groups with annual revenue above \u20ac750 million, under the EU Minimum Tax Directive as implemented by Finland. Companies below the threshold are unaffected, and Finland has no general minimum corporate tax for domestic companies.

How We Help With Corporate Tax Compliance in Finland

Commenda’s corporate tax and bookkeeping service tracks Finnish filing deadlines, prepares and files Form 6B, manages prepayment schedules, and flags incentives like the R&D super-deduction. The controller gets certainty that every Finnish deadline is handled, without opening the laptop at 8pm to check.

For setup, pair it with Commenda’s incorporation and entity management services, and keep every due date in one place with the compliance calendar. Book a demo to get a free review of your Finnish filing and prepayment calendar.