Insights | December 14, 2018

The world’s most complicated restrictions on the deductibility of interest expenses for tax purposes – what to expect next year?

The Finnish Parliament has accepted extremely complicated rules concerning the restrictions on the deductibility of interest expenses for tax purposes. The complexity of the provisions is mostly due to the fact that different thresholds apply to interests paid to related parties and intra-group interest payments. The new provisions are not applied to most of the Finnish companies, since their net interest expenses do not exceed 500 000 euro. However, those entities which are also in practice in the scope of the application of the new rules may find it challenging to calculate their income tax liability.

Read the whole article in Finnish here.