Finland lays groundwork for global minimum tax law

Finnish government is seeking views on draft Minimum Taxation Act that would implement the EU Directive on global minimum tax into Finnish domestic tax law.

The draft law is closely aligned with the EU Directive. It proposes to introduce a supplementary domestic tax in the form of a Qualified Domestic Minimum Top-up Tax (QDMTT), an Income Inclusion Rule (IIR), and an Undertaxed Payments Rule (UTPR).

The global minimum tax rate is pegged at 15 percent.

The law, if enacted, would apply to group entities that are part of a multinational group or a large national group where the group has an annual turnover of at least EUR 750 million in two of the last four financial years preceding the current year.

The Minimum Taxation Act is intended to enter into force on January 1, 2024, and take effect from financial year starting December 31, 2023.

Comments on the draft law must be received by September 8.