Global Daily Tax News, Finland Planning Two Percent Corporate Tax Cut, (May 5, 2026)

The Finnish Government has announced plans to reduce the nation's corporate income tax rate from 20 percent to 18 percent and extend the loss carryforward period for businesses losses to 25 years.

The changes are intended to boost Finland's attractiveness for international investment. The corporate tax rate was already reduced from 26 percent to 20 percent during 2006-2014.

The new corporate tax rate cut responds to declining corporate tax rates internationally, the Finnish Government said, including at EU level, where the average corporate tax rate is now 21.2 percent.

If approved by lawmakers, the corporate tax cut would be effective from the 2027 tax year and would be applied to corporate advance payments after its entry into force.

The amendment to the loss deduction rules would apply to losses incurred in or after the tax year 2026.

The Government is seeking feedback on the proposals by May 25, 2026.