Government Bill for New CFC Legislation Issued

On 6 June 2008 the Finnish Government issued a Bill to amend the current CFC legislation. The Government Bill contains a law proposal that would affect the application of the Finnish CFC regime. If adopted, the Bill would narrow the scope of application of the CFC legislation, but could also require organization of current company structures.

The Bill proposes amendments to the existing regulations especially with regard to the definition of a CFC entity. The Bill also proposes amendments to the provisions concerning the determination of the amount of taxable CFC income, the deduction of the losses of a CFC entity and the foreign tax credit.