Finland Corporate Income Tax

Corporate income tax rate and base (2025)

Finnish resident companies (e.g. Oy) are taxed on worldwide income at a flat corporate rate; foreign companies are taxed on Finnish-source income and income attributable to a Finnish permanent establishment.

• Corporate income tax rate — 20% percent (Income Tax Act (Tuloverolaki 1535/1992); Business Income Tax Act (Laki elinkeinotulon verottamisesta 360/1968))
• Announced rate cut — Corporate rate to fall from 20% to 18% from 2027 (announced; not in force for 2025) percent ((approx — confirm enactment status)) (Government tax policy announcement 2025 (legislation pending))
• Tax base — Net business profit per the Business Income Tax Act; one combined income source for most companies (Business Income Tax Act (Laki elinkeinotulon verottamisesta 360/1968))
• Loss carryforward — Tax losses carried forward for 10 years; no carryback (loss use restricted on >50% ownership change) ((approx — confirm)) (Income Tax Act (Tuloverolaki 1535/1992))
• Participation exemption — Capital gains and dividends on qualifying shareholdings can be tax-exempt for corporate holders under conditions ((approx — confirm conditions)) (Business Income Tax Act (Laki elinkeinotulon verottamisesta 360/1968))

Withholding tax on outbound payments

Dividends, interest and royalties paid to non-residents may be subject to Finnish withholding tax, often reduced or eliminated by EU directives or tax treaties.

• Dividends to non-residents — 20% (corporate beneficiaries) or 30% (individuals), reduced under treaties/EU rules percent (Act on the Taxation of Non-Residents' Income (Laki rajoitetusti verovelvollisen tulon verottamisesta 627/1978))
• Interest to non-residents — Generally 0% (no domestic WHT on most interest to non-residents) percent (Act on the Taxation of Non-Residents' Income (Laki rajoitetusti verovelvollisen tulon verottamisesta 627/1978))
• Royalties to non-residents — 20% (corporate) / 30% (individuals), reduced under treaties and the EU Interest & Royalties Directive percent ((approx — confirm)) (Act on the Taxation of Non-Residents' Income (Laki rajoitetusti verovelvollisen tulon verottamisesta 627/1978))

Corporate filing and payment (2025)

Companies file CIT returns electronically and pay tax in advance instalments during the accounting period, with adjustments after assessment.

• CIT return deadline — Within 4 months from the end of the month in which the accounting period ends (electronic filing) (Act on Assessment Procedure (Laki verotusmenettelystä 1558/1995))
• Advance tax — small liabilities — If total ≤ €2,000: two instalments, due in the 3rd and 9th months of the accounting period (Act on Assessment Procedure (Laki verotusmenettelystä 1558/1995))
• Advance tax — larger liabilities — If total > €2,000: monthly instalments, due on the 23rd of each month (Act on Assessment Procedure (Laki verotusmenettelystä 1558/1995))