In October 2011, major Finnish trade unions and employers'
organisations agreed on conditions of a new framework agreement. To
support the tendencies of both parties, the Finnish government made
suggestions regarding amendments in corporate and individual
taxation. The intention of the government was both to support the
competitiveness of the Finnish industry and to improve employment
and purchasing power. The suggestions were made in addition to the
recent government's bill relating to the budget for 2012,
suggesting several changes in different tax areas.
Finnish corporate income tax rate has already been suggested to be
decreased to 25 per cent as of the beginning of 2012. Now the
Finnish government suggested a further decrease of 0.5 per which
would reduce the corporate income tax rate to 24.5 per cent as of
the start of next year. Personal income taxation would be lightened
to compensate the rise in employee pension payments. The government
would also cancel the suggested increases in unemployment insurance
contribution rates.
To support companies operating in energy-intensive branches, the
government suggested the energy taxation to be lowered by the
implementation of an energy tax cutter in the beginning of 2012. In
addition to that, the government announced it would conduct a
research relating to the possibility of implementing a R&D tax
incentive system or a tax incentive system for start-up companies.
The objective of the government is to implement the tax incentive
system in the beginning of 2013.
The suggestions made by the Finnish government are provisional, the
realization of which depends on the budget and labour negotiations.
Possible changes in Finnish tax legislation may enter into force in
the beginning of 2012.
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