Finland’s corporate income tax rate is a flat 20%, a rate that has applied since 2014, when it was cut down from 24.5%. It remains one of the more competitive rates in the EU and OECD, and it applies equally whether a company is Finnish-owned or foreign-owned.
What Is Finland’s Current Corporate Income Tax Rate?
The rate is 20%, charged on a company’s taxable profit after deductible expenses. This applies to limited liability companies (Oy and Oyj) and most other corporate entities. You can confirm the current rate directly on the Finnish Tax Administration’s website.
Who Does the 20% Rate Apply To?
- Finnish resident companies pay 20% on their worldwide profit.
- Foreign companies with a permanent establishment (PE) in Finland pay 20% on the income attributable to that establishment.
- Sole traders and partnerships are taxed differently: their business income is split between the owner’s earned income and capital income, rather than taxed at the flat corporate rate.
Dividends, interest, and royalties paid to non-residents can also be subject to withholding tax, though rates vary by tax treaty.
Is the Corporate Tax Rate Changing in 2027?
Yes, a reduction is on its way, though it is not yet law. The Finnish government has proposed cutting the corporate income tax rate from 20% to 18%, alongside extending the business loss carry-forward period from 10 to 25 years, for losses confirmed from tax year 2026 onward.
This proposal has moved forward substantially since the spring: it was opened for public consultation in April 2026, and by 1 September 2026, it had been formally included in the government’s draft 2027 budget. The stated aim is to strengthen the competitiveness of Finnish companies and support investment. If adopted, the lower 18% rate would first apply for tax year 2027, and would also lower the tax rate on Finnish-source income earned by non-resident companies.
The proposal still needs to pass through Finland’s Parliament as part of the annual budget process, which normally concludes in December. You can follow its progress through the Finnish Government’s official announcement or the Ministry of Finance’s proposal page.
What Should Businesses Do Now?
Until the proposal is formally adopted, businesses should continue to plan and file on the basis of the current 20% rate. That said, it’s worth factoring the likely 2027 change into longer-term financial planning, particularly for:
- Companies weighing the timing of larger investments or profit distributions
- Businesses with accumulated losses, given the proposed extension to 25 years
- Foreign companies comparing Finland’s tax environment against other jurisdictions
Frequently Asked Questions
What is the corporate tax rate in Finland right now?
20%, unchanged since 2014.
When would the new 18% rate take effect?
From tax year 2027 at the earliest, once Finland’s Parliament passes the 2027 budget.
Stay Ahead of Finland’s Tax Changes With Leinonen
Corporate tax rules can shift with each budget cycle, and getting the timing right matters for planning. Leinonen Finland’s accounting experts track these changes closely and can help your business plan around them with confidence. Get in touch to discuss how the upcoming changes might affect you.
