Finland: Updates on the OECD Pillar Two minimum tax directive and a directive to amend VAT rate laws
On April 6, the Finnish Ministry of Finance issues updates on the EU’s Economic and Financial Affairs Council on progress toward an OECD Pillar Two minimum tax directive and a directive to amend VAT rate laws.
The council passed a VAT rate directive that will allow EU member states to:
- 2 reduced VAT rates of 5% for 24 products
- Zero-rated VAT rates for 7 products
- Super reduced VAT rate of 5% for 1 product
- An existing VAT exemption of at least 12% VAT rate for other member states under specific conditions
- A shift in the place of taxation starting from 2025
The proposal’s objective is to guarantee that multinational corporations pay a fixed minimum amount of tax on their foreign earnings, regardless of the jurisdiction in which they operate.
Source: vm.fi
