Finland

Finland

Introduces a windfall tax on companies operating in electricity and fossil fuel

23 Mar 2023

On 23 March 2023, the Parliament of Finland adopted the Windfall Tax Act, passed the Windfall Tax Act, which aims to alleviate the effects of high energy prices by introducing a solidarity contribution. Under this Act, companies in the fossil fuel sector will be subject to a temporary windfall tax of 33 percent, calculated based on their business operations' profits in 2023 that exceed 120 percent of their average profit from 2018 to 2021.

Similarly, companies in the electricity sector will face a temporary tax of 30 percent, calculated based on their net profits from electricity business operations that exceed 10 percent of their equity in the differentiated balance sheet for electricity business operations at the end of 2022. This tax will apply to electricity industry companies with a minimum revenue of EUR 500,000.

Nature of measure:
  • Treatment and operation
Type:
  • Treatment and operation (Other)
Industry:
  • Manufacturing (Manufacture of coke and refined petroleum products)
  • Services (Electricity, gas, steam and air conditioning supply)
Inward FDI:
No
Outward FDI:
No
Sources: