The corporate tax rate in Finland is 20%.
Article 31 of the Assessment Procedure Act (VML) prescribes the arm’s-length principle for related party transactions. According to Art 31 VML, in the event a taxpayer and a related party have agreed upon terms or defined terms that differ from the terms that would have been agreed upon between independent parties and, as a consequence, the taxable income of the taxpayer falls below, or the taxpayer’s loss increases, compared to the amount that the taxable income would otherwise have been, the taxable income may be increased to the amount that would have accrued in case the terms had followed those that would have been agreed upon between independent parties.
Related party transactions are defined on the basis of direct or indirect control. The arm’s-length requirement also applies to transactions between the company and its permanent establishment.
The transfer pricing documentation rules are contained in Articles 14a-14c of the Assessment Procedure Act.