“Minimum tax is a success story”, EK's tax director Anita Isomaa assesses.
Industrial countries the organization OECD predicts in its recent impact assessment that the tax revenues of the 15 percent minimum tax rate set for large companies will be significant in the future.
The OECD predicts that profits transferred to low-tax countries will be halved from the current level. The minimum tax is estimated to reduce the differences in corporate tax rates in different countries by around 30 percent, according to the OECD in the report is evaluated.
As a result of these, the amount of corporate and corporate taxes in different countries will increase by 6–8 percent worldwide. That would mean 155–192 billion dollars, or 142–175 billion euros, in additional corporate tax revenues in different countries.
The OECD estimates that after the reform, the amount of profits allocated to different tax havens would decrease by as much as 80 percent.
Minimum tax mainly applies to companies with a turnover of more than 750 million euros per year.
Many large global companies have been able to minimize the payment of their taxes with international tax planning so that they have not had to pay much taxes.
Finland In countries like
In Finland, the income from the corporate tax is in the order of seven billion euros, so the reform of the tax revenue of the Finnish state could increase by up to 700 million euros per year. Of course, tax revenues vary in different years.
In Finland, the legislation applies to approximately 50–60 companies, of which 10–20 operate only in Finland.
Initially, the OECD's intention was to regulate the minimum tax to apply only to companies engaged in global trade, but in the EU's minimum tax directive, the scope was expanded, says the tax director of the Confederation of Finnish Business (EK) Anita Isomaa.
in Finland The EU directive on the 15 percent minimum community tax entered into force at the beginning of the year.
“The minimum tax rate is an international success story in taxation. It was already seen in the summer. The OECD already estimated in July of last year that by 2025, almost 90 percent of large companies would be covered by the tax,” says Isomaa.
According to him, none of the large Finnish companies has reportedly opposed the introduction of the minimum tax, but the administrative burden of the new tax system and its costs worry companies.
“You don't have to worry about paying tax and tax-related issues, but about the fact that the system is unprecedentedly extensive and complicated.”
Minimum tax after implementation, large companies have to pay a tax of at least 15 percent on their profits to the various target countries in accordance with the agreed system.
In this way, the incentive for international tax planning is reduced.
International corporate income taxation is based on the fact that profits are taxed in the country where value creation takes place. However, defining value creation is difficult.
In Finland, large companies must give their first minimum tax reports during 2026.
According to Isomaa, large companies are worried about how to make the complex system work in practice so that the companies can safely assume that it is working correctly.
“We would hope that dispute resolution, prevention and legal certainty would be fixed.”
From the tax administration it is not yet possible to obtain advance rulings on the taxation practice of minimum taxation.
That's why companies hope that the tax administration has enough resources to give adequate instructions, says Isomaa.
In practice, corporate taxation tightens so much that most countries introduce a national supplemental tax, which allows companies to be taxed the difference between the country with a low tax rate and the 15 percent tax rate, Isomaa says.
This is also done in Finland.
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