On 23 September 2026, the Finnish Tax Administration (Verohallinto) published the fourth edition of its dedicated newsletter for software developers, providing updated guidance on tax obligations, deductible expenses, and digital reporting requirements specific to the software industry. The newsletter addresses recent legislative changes affecting VAT treatment of digital services, withholding tax on cross-border payments, and the application of the OECD’s Pillar Two rules for multinational developer groups.
Key Takeaways
- VAT on Digital Services: Clarification on the place of supply rules for B2B and B2C software deliveries, including new reporting thresholds for the EU’s One Stop Shop (OSS) scheme effective from 2026.
- Withholding Tax Compliance: Updated guidance on reduced withholding tax rates under tax treaties for royalty payments related to software licenses, including documentation requirements for treaty benefits.
- Pillar Two Implications: Preliminary analysis of how the global minimum tax affects Finnish-headquartered software companies with foreign subsidiaries, including safe harbour provisions and filing deadlines.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement