Finland Guides on Global Tax Effective Rate, Top-Up Formula

The Finnish Tax Administration published Tuesday guidance detailing effective tax rate calculations and potential top-up taxes for corporate groups under global minimum tax rules.

These calculations verify that group entities in each jurisdiction are taxed at a rate of at least 15% and determine any top-up taxation on shortfalls.

The minimum tax is designed to ensure large corporate groups are levied at a minimum 15% rate wherever they operate and is one half of a tax deal negotiated at the Organization for Economic Cooperation and Development.

• The guidance lays out extensive details on the so-called substance-based deduction, which ...