Global Daily Tax News, Finland Legislates For Corporate Tax Cut, (Sep 14, 2026)

The Finnish Government has confirmed it recently tabled legislation in parliament to reduce the corporate income tax rate and extend the period companies may carry forward businesses losses.

The legislation, tabled in parliament on September 3, 2026, would cut the corporate income tax rate to 18 percent from 20 percent and allow losses to be carried forward for up to 25 years, up from 10 years.

The Government said, "The Government's proposed two percentage point tax reduction would lower Finland's corporate tax rate below the EU and OECD averages, which would strengthen the international competitiveness of Finnish companies." Further, it said: "A long [tax loss] deduction period would support investments, especially in areas where product development and testing require years of investment before commercialization, and would encourage companies to expand their operations."

The legislation will become effective from the start of 2027.