Finland publishes updated guidance on interest rates

Finland publishes updated guidance on interest rates

The Finnish Tax Administration has published an updated guide to the base and reference rates for tax purposes. One of the key aspects of the update concerns interest on late payment. Interest and late payment interest must be up to 2.5% in advance for taxes provided for in an agreement on simplified payments or deferred payments in force from March 25 to August 31, 2020. This provision applies to VAT payable after January 1, 2020 and March 1 2020 for other taxes. The reduced rate of 2.5% will apply for the entire duration of the payment agreement.

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