Finland: Proposed tax changes in mid-term budget negotiations

Proposed corporate and individual income tax, VAT, and excise tax changes

The government on April 23, 2025, proposed tax changes during its mid-term budget negotiations.

Corporate tax proposals include:

Reducing the corporate income tax rate from 20% to 18%, effective January 1, 2027
Extending the loss carry forward period to 25 years

For individual taxation, the proposals would:

Reduce earned income taxation for low- and mid--income earners
Adjust the marginal tax rate to 52%
Eliminate certain deductions such as the home office and bicycle benefit

Additionally, the government plans to implement value added tax (VAT) reductions and increase excise taxes, alongside updating inheritance and gift taxation limits starting January 1, 2026.

For more information, contact a KPMG tax professional in Finland:

Natalia Latvala | natalia.latvala@kpmg.fi

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Finland: Proposed tax changes in mid-term budget negotiations

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