The reduction from the current level of 24.5% will come into effect from January.
The decision is intended to increase Finland’s international competitiveness by attracting more companies to locate and invest in the country.
However, tighter taxation on dividends for both listed and non-listed companies will take effect.
For example, 85% of the dividends paid by listed companies will become subject to taxation instead of the current 70% of such dividends which are considered as taxable capital income. Capital income will be taxed progressively.
Net assets of small businesses such as a doctor or a law firm will also be taxed.
The parliamentary committee on finance presented the new cooperate tax reforms and looks forwards to hear more on its impact and assessment.
