FINLAND Trends and Developments Contributed by: Tarja Pirinen, Fiiu Linninen, Malin Holm and Jaakko Klemettilä, HPP Attorneys Ltd
permits and conducting preliminary feasibility studies, are not considered as the commence - ment of works. The amount of Tax Credit is 20% of the costs approved as the basis for the credit, but no more than EUR150 million per company or group of companies. The full amount of the Tax Credit is therefore obtained with investment costs of EUR750 million. The amount of Direct Aid may not exceed 15% of the eligible costs and may not exceed EUR150 million per company. The Direct Aid and the Tax Credit can be used only within the framework of the EU state aid regula - tion’s so-called cumulation rules.
The Direct Aid would be granted by the end of the year 2025. Tax Credit can be deducted from the company’s income tax as of tax year 2028 and the following 19 tax years. However, the Tax Credit can be deducted in the tax year in which the investment is completed, at the earliest. For each tax year, the Tax Credit can be deducted by up to 10% of the total Tax Credit granted to the company. Because the Tax Credit is deducted from the company’s income tax, the use of the Tax Credit requires that the company makes a taxable profit. It is possible that some changes may still be made to both state aids during the legislative process. Furthermore, the European Commis - sion must find both state aids compatible with the single market before they can enter into force.
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