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Finland to Extend Increased Depreciation of Machinery, Equipment, and Similar Movable Fixed Assets and Expand Taxation of Concealed Dividends

27 October 2022

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Proposed Changes

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Finland

Finland's Ministry of Finance has issued a release on draft bill HE 227/2022 vp, which was submitted in parliament on 20 October 2022. Draft bill HE 227/2022 vp would extend the increased depreciation of machinery, equipment, and similar movable fixed assets for tax years 2020 to 2023, so that it also applies for 2024 and 2025. The increased deprecation includes the doubling of the depreciation rate for assets acquired and put into service during these years, up to 50%. Draft bill HE 227/2022 vp would also expand the taxation of concealed dividends (hidden profit distributions). Currently, 75% of concealed dividends...