Tax changes in the 2026 spending limits session – what companies should note
The Government outlined several tax-related changes in the spring 2026 spending limits session. From a corporate perspective, the key points concern the corporate income tax rate, share-based incentive schemes, the donation deduction, and the tax credit for clean industry investments.
The corporate income tax rate is intended to be reduced from 20% to 18% from the beginning of 2027. The proposal concerning the change is currently under consultation. The change would ease companies’ income taxation and directly affect, for example, how much of the result remains in the company or is available for distribution to shareholders.
The Government also outlined changes to the taxation of share-based incentive schemes in the spending limits session. Currently, an employee may incur taxable earned income from employee stock options already when the option is exercised and the shares are subscribed for, even if the shares have not been sold and no cash has yet been received. According to the Government’s outline, the timing of taxation for employee stock options in unlisted companies would be deferred until the shares are sold. In addition, the intention is to reform directed employee share issues so that employees of a subsidiary could also be offered shares in the group’s parent company. The changes are particularly relevant to growth companies and group structures where implementing incentive schemes can currently be challenging from a tax perspective.
Regarding the donation deduction, the scope of tax-deductible donations is intended to be expanded from the beginning of 2027 to also cover organizations in the social and healthcare sector. Currently, deductibility mainly applies to science and the arts.
Preparations are under way to extend the tax credit for clean industry investments for 2026–2027. This would continue the tax credit that entered into force in 2025 for large investments aimed at a climate-neutral economy. The Government proposal is expected to proceed in summer 2026, but the detailed conditions will become clearer as the preparation progresses.
The changes should be considered when a company is planning share-based incentive schemes, group-level employee share issues, or larger investments.
Tuokko is happy to help assess how the outlined and currently pending changes may affect your company’s taxation and the planning of future arrangements.
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