Finland tax changes 2027: VAT, corporate tax and employer costs

Karma Accounts · Published 29 October 2026

For businesses in Finland, 2027 brings VAT changes that are already law and tax cuts that are still only proposals. The VAT rates do not change: 25.5 %, 13.5 % and 10 %. A VAT Act amendment in force on 1 January 2027 changes the EU distance sales limit and the One Stop Shop (OSS) rules and ends call-off stock. The corporate tax cut from 20 % to 18 %, 25 years for business losses, lower unemployment insurance and a higher entrepreneur deduction are proposals Parliament has not yet passed. The 2027 travel maximums, 58 cents a kilometre and 55 euros a day, are decided.

What changes for businesses in 2027

Status checked on eduskunta.fi, Finlex and vero.fi on 29 October 2026.

Change	Status	Who it affects
VAT: 10 000 euro limit, OSS for energy, call-off stock end	enacted, Act 597/2026, from 1 January 2027	EU webshops, call-off stock users
VAT rates 25.5 %, 13.5 %, 10 %	no change found	VAT-registered businesses
Corporate income tax 20 % to 18 %	proposed, HE 151/2026, not yet law	Oy, cooperatives, other entities
Business losses usable for 25 years instead of 10	proposed, HE 151/2026, not yet law	entities and partnerships, not sole traders
Entrepreneur deduction 5 % to 5.5 %	proposed, HE 174/2026, not yet law	sole traders, farming and forestry, individual partners in Ay and Ky
Unemployment insurance, employer 0.26 % (1.04 % above 2 568 000 €), employee 0.74 %	proposed, HE 187/2026, not yet law	employers and employees
TyEL 24.4 %: employer average 17.10 %, employee 7.30 %	proposed, unchanged, ministry decision in November	employers and employees
Tax-free maximums: 58 cents a kilometre, domestic per diem 55 euros	decided, from 1 January 2027	anyone paying travel allowances

VAT 2027: the rates stay, the EU rules change

The rates. 25.5 %, 13.5 % and 10 % stay. The Tax Administration lists no change for 2027, and we found no government proposal changing a rate, as far as the law and proposals we checked on 29 October 2026 show. What falls under each rate: VAT rates in Finland 2026.

What is enacted. Act 597/2026 amends the VAT Act for tax that becomes chargeable on or after 1 January 2027, implementing part of the EU directive on VAT in the digital age (ViDA, Directive (EU) 2025/516):

The 10 000 euro limit. A seller established in one EU country charges its own VAT on distance sales of goods and on telecommunications, broadcasting and electronic services to consumers in other EU countries while these total, without VAT, 10 000 euros or less this year and last year; it may choose destination VAT instead. From 2027 this covers only goods shipped from the seller's own country: goods shipped from a warehouse in another EU country are taxed where they are delivered from the first euro. The amount stays; see our e-commerce VAT article.
Energy in OSS. Sales of electricity, network gas and district heating or cooling to consumers in another EU country can be reported through the OSS instead of registering there.
Call-off stock. The simplification covers only goods moved to or from Finland by 30 June 2028; no new goods can be moved under it after that.

What comes later. Wider single VAT registration from 1 July 2028; platform rules for short-term accommodation and passenger transport, optional for EU countries from 1 July 2028 and mandatory from 1 January 2030; and e-invoicing with transaction reporting for cross-border EU sales between businesses from 1 July 2030.

Corporate tax 2027: 18 % is a proposal

Proposed, HE 151/2026, not yet law. The government gave Parliament the proposal on 3 September 2026. It would:

lower the corporate income tax rate (yhteisövero) from 20 % to 18 %, first in the taxation for tax year 2027;
lower the statutory tax at source on dividends, interest and royalties paid to non-resident entities to 18 %, where it applies: interest paid abroad is generally exempt, and a tax treaty can lower the rate;
extend the period for deducting business losses from 10 to 25 years for entities such as an Oy or a cooperative and for partnerships, for losses from tax year 2026 onwards. Earlier losses, and sole traders' losses, keep 10 years.

On 29 October 2026 the bill is in its first reading; the Finance Committee proposed on 16 October 2026 that it be passed unchanged. After Parliament passes it, the President must confirm the law and it must be published in the Statute Book (Finlex) before it takes effect.

Which year it reaches. A company's tax year is the financial period, or periods, ending in the calendar year. A financial year from 1 July 2026 to 30 June 2027 ends in 2027, so its whole profit would be taxed at 18 % if the law passes as proposed. A calendar-year company reports its 2027 profit on Form 6B in 2028.

Prepayments. The lower rate would apply to company prepayments from the day the law enters into force; you can then ask for your 2027 prepayment to be changed.

Employer contributions 2027

Contribution	2026	2027
Unemployment insurance, employer	0.31 % up to 2 509 500 € payroll, 1.23 % above	0.26 % up to 2 568 000 €, 1.04 % above (proposed)
Unemployment insurance, employee	0.89 %	0.74 % (proposed)
TyEL: total / employer average / employee	24.4 % / 17.10 % / 7.30 %	24.4 % / 17.10 % / 7.30 % (proposed)
Employer health insurance	1.91 %	not yet published

Unemployment insurance: proposed, HE 187/2026, not yet law, at the committee report stage on 29 October 2026. For a part-owner the employee rate would be 0.35 %.
TyEL and YEL: proposed. The employee rate is the same at all ages, and YEL before discounts would stay at 24.4 %. The Ministry of Social Affairs and Health approves the pension companies' contribution bases and sets the employee and YEL rates by decree in November. See our TyEL 2026 article.
Travel allowances: decided. The Tax Administration's decision of 23 October 2026 sets the tax-free maximums: 58 cents a kilometre for an own car (55 in 2026), a full domestic per diem of 55 euros (54), a partial per diem of 25 euros and a meal allowance of 13.75 euros (13.50). These are ceilings, not obligations; see our mileage and per diem article.

Other changes for businesses

Entrepreneur deduction: proposed, HE 174/2026. It would rise from 5 % to 5.5 % for sole traders, farming and forestry, and partners in partnerships who are individuals or estates, from the 2027 taxation. It was in committee on 29 October 2026.
The Tax Administration's bank account: a new OP account starts on Tuesday 1 December 2026, and the Danske Bank account (starting FI56) closes on Monday 31 May 2027. Later payments to it are returned. The Nordea account stays; MyTax and e-invoice payments need no change.

What is not changing in 2027

The VAT rates and the 10 000 euro amount.
Average TyEL of 24.4 %, if confirmed.
Sole traders' 10-year loss period.
The 20 % corporate tax, until HE 151/2026 is in force.

A worked example

Lumo Oy's financial year ending 30 June 2027 shows a taxable profit of 80 000 euros. In 2027 it pays 120 000 euros in wages, and its staff drive 4 000 business kilometres in their own cars.

Corporate tax at 20 % is 16 000 euros; at the proposed 18 % it is 14 400 euros, 1 600 euros less.
Employer unemployment insurance at 0.31 % would be 372 euros; at the proposed 0.26 % it is 312 euros, 60 euros less.
If Lumo pays the maximum kilometre allowance, the tax-free amount its staff can receive rises from 2 200 euros to 2 320 euros, a 120 euro higher cost for Lumo.

The first two lines depend on Parliament; the last is decided.

How to prepare

Update payroll rates once confirmed, and the travel maximums from 1 January.
Replace the Danske Bank account in saved payment templates by 31 May 2027.
Shipping to EU consumers from a warehouse abroad: recheck which sales take destination VAT.
Using call-off stock: plan for moves after 30 June 2028.
Once HE 151/2026 is in force, review your 2027 prepayment, and record the year each loss arose.

Frequently asked questions

Will VAT change in Finland in 2027?

The rates do not. The OSS, distance sales and call-off stock rules change from 1 January 2027.

Is the corporate tax 18 % in 2027?

Not yet. HE 151/2026 proposing it is in Parliament; until it is in force, the rate is 20 %.

What are the employer contributions for 2027?

Proposed: unemployment insurance 0.26 % (1.04 % above 2 568 000 euros of payroll) and TyEL 17.10 % on average. The employee pays 0.74 % and 7.30 %. The health insurance rate is not yet out.

When this article changes

Written on 29 October 2026. We will update it when Parliament decides on HE 151/2026, 174/2026 and 187/2026 and the 2027 TyEL and health insurance rates are confirmed.

How we help

We keep our clients' bookkeeping, VAT returns, payroll and tax returns up to date with these changes as they take effect, and apply for prepayment changes when rates move. See our services or request a quote.

Sources

Please note: this is general information about Finnish rules, not advice for your own situation, and the rules change. Ask us before you act on it.

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