Finland Tax Agency Updates Guidance on Taxation of Foreign Entities With Limited Tax Liability

The Finnish Tax Administration Nov. 22 updated Guide No. VH/5425/00.01.00/2023, on how foreign entities with limited tax liability in Finland are taxed on income from the country. Updates clarify amendments to the Income Tax Act regarding the taxation of income from real estate and condominiums, effective March 1. Topics covered include: 1) the 20 percent tax rate applicable to foreign entities with limited tax liability, on corporate income and on income from immoveable property; 2) the effects of DTAs on Finland’s taxation rights; 3) reporting obligations for foreign entities; 4) the definition of permanent establishment (PE) and tax rules for ...