The Finnish Government has announced the completion of work on updating its legislative plan, which includes the removal of certain previously proposed measures. Although removed, it is possible that the measures may be reintroduced in the future.

One of the main measures that has been removed from the plan is the introduction of a new R&D tax incentive (previous coverage). The new incentive is a combined deduction for R&D activities, including a general additional deduction based on the amount of R&D expenses incurred plus an additional deduction based on the increase in R&D expenses compared to the previous year. The additional deductions would apply for salary and service expenses related to a taxpayer's own R&D activities.

Another important measure is the introduction of the economic employer concept (previous coverage). Finland currently applies the formal employer concept, which means that the employer is considered to be the company that is legally responsible for the employee and that pays the employee's salary. Under the economic employer concept, the employer is considered to be the company for which work is actually performed. This distinction is important in relation to taxing rights on the salary of employees that are employed by a foreign employer (the formal employer) and sent to perform work in Finland for another person (the economic employer).