Implementation of exit tax rules in Finland
Exit tax rules in corporate taxation came into force on 1 January 2020 in Finland. The rules are based on the requirements of the EU Anti-Tax Avoidance Directive (the ATAD 2016/1164/EU). In general, the new rules amend the existing rules and clarify the definition of the exit value that is the taxable income in exit situations. All income sources are subject to exit tax and cover both corporations and partnerships.
Exit tax situations - Transfer of assets out of Finland
The exit tax will apply in the following situations where Finland would lose its right to tax transferred assets:
Postponement of exit tax
According to the new exit tax rules, in such exit situations where the taxpayer transfers its assets to another EU state or EEA country the payment of tax can be postponed up to a period of five years.
The Finnish Tax Administration will publish further instructions on application of the new exit tax rules in near future.