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6.4. Deduction of Cross-Border Payments and Non-Deductible Expenses

The following are not deductible for Finnish tax purposes:

  • Expenses not incurred for the production of taxable income
  • Fines and other penalty payments
  • 50% of entertainment costs incurred
  • Excessive salaries or other types of compensation paid to a shareholder or their family member
  • Bribes and similar payments
  • Capital losses and liquidation losses if capital gains from the sale of shares of a target company would qualify for the participation exemption
  • Losses from the disposal of a company’s own shares
  • Interest expense towards intra-group loans in excess of 25% of the EBITDA (See Section 13.1)