How corporate tax works in Finland
Finland taxes resident companies on worldwide income at a flat 20%. There is no municipal corporate tax, and losses carry forward for ten years, planned to extend to twenty-five.
Parliament has charted a cut to 18% from January 2027 with longer loss carry. Until enacted detail lands, 2026 decisions price at 20%.
Groups above EUR 750 million turnover face the 15% Pillar Two minimum through Finnish IIR, domestic top-up and UTPR rules. Intra-group dividends are generally exempt.
Tax rates at a glance
- Corporate rate
- 20%Flat
- Future rate
- 18%
- Loss carry
- 10 years
- Pillar Two minimum
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsCross-border groups
Watch out for
- The 18% rate is a roadmap, not 2026 law. Contracts and valuations assuming 18% today misprice current-year profits.
- Losses need ownership continuity. Major ownership changes can forfeit carry-forward without a dispensation ruling.
- Interest deduction follows EBITDA-based business-rule limits. Leveraged structures need Finnish modelling, not generic EU math.
- Salary-heavy founders face the personal side too. A 20% company rate beside 52% top salary margins makes dividend and holding planning central.
Frequently asked questions
Does Finland have corporate tax?
Yes, a flat 20% on company profits with no local surcharge and a legislated path to 18% from 2027.
Are group dividends exempt in Finland?
Generally yes for qualifying domestic and EU holdings, with standard substance and holding conditions.
Does Pillar Two apply in Finland?
Yes. Finland enacted IIR, domestic top-up and UTPR, so groups above EUR 750 million turnover face a 15% floor.