Finland’s parliament has approved a reduction in the corporate income tax rate from 20 percent to 18 percent, with the change taking effect at the beginning of 2027.
National Coalition Party MP Janne Heikkinen, who chairs the tax subcommittee of parliament’s Finance Committee, welcomed the decision as a measure aimed at supporting business growth and investment.
Heikkinen said the lower tax rate would leave companies with more funds to invest in machinery, product development and new employees.
“When more of a company’s profits remain in the business, the money can be used for new machinery, research and development, and hiring the next employee,” Heikkinen said in a statement.
He said the change would benefit both large companies and small and medium-sized limited companies, particularly those that have difficulty obtaining external financing.
“In a small business, growth is often built one euro at a time. Entrepreneurs know their customers and know what kind of investment would move their business forward,” Heikkinen said.
According to Heikkinen, the tax cut is also intended to strengthen Finland’s position in international competition for investment.
He argued that Finland needs to remain an attractive country both for establishing companies and for expanding existing operations.
“Behind every new job is a decision to hire someone. Behind every investment is confidence that the business will remain viable in the future,” he said.
Heikkinen also said improving Finland’s public finances requires economic growth and job creation alongside spending cuts.
“In addition to cuts, measures to support growth are also needed. We need successful companies that create jobs and prosperity,” he said.