The Finnish Government submitted a legislative proposal on 29 September 2026 to widen the scope and increase the caps for tax-deductible donations. The bill amends the Income Tax Act (1535/1992) Sections 49 and 50, raising the annual deduction ceiling for individuals from €850 to €1,500 and for corporations from 0.5% to 1% of taxable income. It also adds qualifying recipients, including registered associations promoting culture, science, and environmental protection. The changes are slated to take effect from the 2027 tax year, pending parliamentary approval.
Key Takeaways
- Higher Deduction Ceilings: Individual taxpayers can deduct up to €1,500 per year (previously €850), while corporate donors may deduct up to 1% of taxable income (up from 0.5%). The carryforward period for excess donations remains at three years.
- Expanded Eligible Recipients: The list of approved donees now encompasses entities engaged in cultural heritage preservation, scientific research, and climate action, provided they hold valid non-profit status and are entered in the Tax Administration’s register.
- Anti-Abuse Safeguards: The proposal introduces stricter documentation requirements, including mandatory donee confirmation certificates and enhanced reporting on Form 50A for donations exceeding €5,000.
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