Finland proposes tax measures in Budget 2022

Finland has agreed on new tax measures to strengthen general government finances by a total of approximately EUR 100 million on an annual basis. The new decisions will take effect in 2022 and 2023.

To mitigate aggressive tax planning, the provisions on the limitation of deductibility of interest expenses will be reformed by restricting the application of the balance sheet exemption from the beginning of 2022 so that the provisions effectively prevent the transfer of taxable income outside Finnish taxation in private equity structures.

In addition, the transfer pricing adjustment provision will be revised from the beginning of 2022 so that it can be applied within the scope of the OECD Transfer Pricing Guidelines.
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See Announcement