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Economy and Taxation

Companies must enjoy predictable taxation and business environments. The public finances must be balanced, and care must be taken to ensure the corporation tax rate and system are competitive. To make work worthwhile, the long-term goal must be reducing income tax in all income classes, within the framework of what the public purse can afford.

Last modified 05.09.2024 at 09:41

Constant care must be taken of the competitiveness of the Finnish corporation tax rate and system to ensure the country can attract companies and high added-value activities. Competitiveness and value formation require large material, immaterial and personnel investments, an impact of all of which can be made via taxation. Companies must be able to predict taxation and how the business environment will develop. Finland’s public finances are beset by a difficult, long-term imbalance rooted in the rapid ageing of the population and sluggish productivity growth. Economic growth produced in a strong private sector will secure the long-term sustainability of Finland’s public sector without the need to compromise on the key good features of the welfare state.

  1. The goal must be balanced public finances. A strong public purse creates stability and trust in the business environment. Stability and predictability help companies make long-term plans and investments. Balanced public finances mean fewer taxes, which would harm businesses’ competitiveness, need to be collected.
  2. The competitiveness of the corporation tax rate and system must be guaranteed. Enterprise and Finnish ownership create prosperity and wealth for society as a whole. Both corporation and capital taxation must promote enterprise and ownership as well as companies’ international competitiveness.
  3. Incentives are need for work, developing work, and career progress. The technology industry needs 130,000 new skilled workers over the next ten years, from Finland and abroad. High income tax is a significant brake on attracting skilled labour. The long-term goal must be reducing income tax in all income classes, within the framework of what the public purse can afford.
  4. Taxation must become more digitalized. Functional, predictable taxation procedures are a competitive edge for Finland. The digitalization and automation of taxation, invoice- and receipt-based reporting, and digital procurement projects must be prepared in cooperation with companies and in a way that advances real-time economy (RTE) in Finland, the EU and globally. The goal must be reduced costs and administrative burden for companies.
  5. The unanimity requirement in EU tax decisions must be retained. Increasingly, companies are trading globally. The global taxation model must always be the primary goal, as it best secures Finnish companies’ competitiveness. Finland needs a consistent, clear vision and principles on the direction it wants EU tax policy to go. This will allow Finland to make an impact in the EU actively and at the right time and to retain its taxation rights.
  6. Taxation must support the digital green transition. When new sustainable taxation models are planned, the tax system as a whole must be considered. Finland must become a good operating environment for sustainable business. For example, corporation tax and energy tax must be at competitive levels. Sustainable taxation must be green, digital and fair.