In general, expenses incurred for acquiring or maintaining income. The fact that it was the taxpayer's intention to incur a particular expense for this purpose is usually the decisive test for deductibility.
The following expenses are not deductible: corporate income taxes; temporary bank tax (2013-2015); entertainment expenses, bribes, fines, parking tickets and similar penalty payments; connection charges collected by companies which maintain electricity, telephone, water, sewage or district heating systems provided that the charges are refundable to the payer; expenses incurred for the purpose of acquiring or maintaining tax exempt income (the part which exceeds the tax exempt income is deductible); expenses incurred for the purpose of acquiring or maintaining income which is exempt in Finland under a double taxation agreement; Acquisition costs of shares where the capital gains derived by companies from transfer of those shares are tax-exempt under participation exemption for capital gains; Substitute dividend to the extent that the ordinary dividend which it replaces would be tax exempt for the payer of the substitute dividend; Loss or depreciation of receivables other than sales receivables if the debtor corporation is a limited liability company and the creditor is a limited liability company, a cooperative, a savings bank or a mutual insurance company not engaged in investment activity, which alone or together with other group companies owns at least 10 per cent of the share capital of the debtor. Group subsidies and other similar expenses without counter-performance to improve the financial position of such a limited liability (group) company are also non-deductible; Acquisition costs of company's own shares (except amounts paid by companies for own shares which have been alienated on the basis of employment relationship if purchased in public trading, in such a case there are some limitations to the deductible amount.)
Capital paid up by shareholders
Refunds of income taxes
Connection charges collected by companies that maintain electricity, telephone, water, sewage or district heating systems, provided that the charges are refundable
Distributions from partnerships (partnerships are not treated as separate entities for tax purposes, but the taxable income of the partnership is taxed in the hands of the partners. Consequently, the actual profit distributions made by the partnership do not constitute taxable income)
Capital gains from fixed asset shares received by corporations not engaged in investment activity are tax exempt under certain conditions. The capital losses from transfer of such shares are non-deductible
Payments received from disposal of company's own shares.
R&D deduction: A special deduction of 100 % is granted on the basis of the salaries of R&D-personnel is applied during tax years 2013-2014.
A tonnage tax is applied to the shipping industry.