Finland Ranks 32nd in Corporate Tax Haven Index
Finland has been placed 32nd out of 70 countries in the Corporate Tax Haven Index, indicating weaknesses in its tax laws that enable multinational corporations to exploit loopholes and shift profits abroad. Published by the Tax Justice Network, the index evaluates how effectively countries prevent corporate tax avoidance, with a higher ranking indicating leniency towards large corporations.
Expert Insights
Tax expert Saara Hietanen from Finnwatch highlighted Finland’s failure to prevent profit-shifting by multinational corporations, citing weak restrictions on interest expenses and lack of limits on royalty and service payments within corporate groups. Hietanen urged the need for Finland to align with EU countries in limiting intra-group expenses to combat tax evasion.
Strengths and Areas for Improvement
While Finland’s tax system lacks special economic zones and generous equity deductions, reforms are necessary to address loopholes in interest deduction limitations and Controlled Foreign Company laws. Finnwatch advocates for domestic and EU-level changes to prevent aggressive tax planning and enhance tax fairness.
Top Performers
The top spots in the index are dominated by well-known tax havens like the British Virgin Islands and Cayman Islands, highlighting the global issue of tax avoidance. Several EU countries and other jurisdictions also feature in the top rankings.
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