At the beginning of 2023, several regulations and legal amendments will enter into force.
Priority procedure for green transition investments
Green transition projects are promoted and accelerated in permit processing and appeal processing. Some green transition projects are given priority in the regional administrative agencies' permit processing and the administrative courts' appeal processing, i.e. the projects are treated as urgent in relation to other permit and appeal matters. The priority procedure accelerates the transition from fossil energy and promotes energy self-sufficiency.
The green transition refers to solutions that move towards a sustainable economy and growth that is not based on the overconsumption of natural resources but relies on low-carbon solutions and solutions that promote the circular economy and biodiversity. The condition is that the projects belong to the priority projects listed in the laws (e.g. battery factory, hydrogen production, etc.). In addition, the applicant is required to demonstrate in a written report that the project does not cause significant harm ("no significant harm" principle, NSH principle). In order to receive priority, the applicant must request priority in connection with the permit application or appeal.
The regulation is temporary and applies to permit processing by regional administrative agencies in 2023—2026 and in administrative courts in 2023—2028. The regulation changes several laws, e.g. Water Act and Environmental Protection Act (HE 128/2022). The laws enter into force on January 1.1.2023, XNUMX.
Whistleblower Protection Act comes into effect - stronger protection for those who report abuses
The Act on the Protection of Persons Reporting Violations of European Union and National Law will enter into force on January 1.1.2023, 147 (HE 2022/XNUMX). The proposed law would implement the Directive on the protection of persons reporting violations of European Union law (Whistleblowing Directive). The goal of the law is that a whistleblower who, in connection with his work, detects or suspects a violation against the public interest in separately defined areas of EU law, can report the matter safely.
The purpose of the regulation is to support the disclosure of abuses and the fight against corruption and fraud. If a person detects or suspects abuses in connection with their work, the regulation aims to ensure a safe way to report them. The regulation also ensures uniform protection against retaliation for whistleblowers, as well as confidentiality and confidential processing of their personal data.
The directive's obligation applies to organizations employing more than 50 people, both in the private and public sectors, who are obliged to establish an internal notification channel, where notifications are primarily made.
A new tax incentive for research and development activities
The Act on Additional Deductions in Taxation Based on Research and Development Activity Expenses creates a new tax incentive for R&D activities in Finland. The President of the Republic confirmed the law on December 29.12.2022, 70 (LA 2022/XNUMX), which came into force based on the initiative of the members of parliament, because the proposal prepared by the government did not advance to the parliament. Companies can make additional tax deductions based on research and development expenses.
In terms of its model, the tax incentive is an additional tax deduction: the taxpayer is allowed to deduct the incurred R&D expenses from an amount greater than the actual expenses. The incentive is a so-called combined deduction, i.e. it includes a general additional deduction based on R&D activity expenses and an additional additional deduction based on an increase in expenses.
A general additional deduction can be obtained for the first time in the taxation submitted for the tax year 2023. An additional additional deduction can be obtained for the first time in the taxation submitted for the tax year 2024. The Tax Administration will publish instructions on the tax incentive as soon as possible.
The conditions of the housing savings bonus system will improve
The terms of the housing savings bonus system (ASP system) will become better with the APS Act and some other legal amendments (HE 45/2022). The upper age limit for concluding a savings agreement will increase from the current 39 years to 44 years. Like married couples, common-law partners can also open an ASP account, even if the other spouse has reached the age of 45, if they have a child together. The maximum amount of the ASP loan for an apartment purchased together by two home savers is increased by 50 percent.
The maximum amount of the state's guarantee liability will rise from EUR 50 to EUR 000. In addition, the amendment to the regulation that will enter into force on April 60, 000 increases the maximum amount of ASP deposits from EUR 1.4.2023 to EUR 3000.
Amendment to the Interest Act - reference interest and interest on late payments in the period between 1.1 January and 30.6.2023 June XNUMX
With the amendment to the Interest Act, the reference interest rate for the period between 1.1 January and 30.6.2023 June 2,5 is 12%. The reference interest rate used to determine the interest on late payment is determined on the basis of Section 9,5 of the Interest Act. The default interest during this period is 4% per year, i.e. the reference interest plus an additional interest of 7 percentage points according to Section 10,5 of the Interest Act. The interest on late payment intended to be applied to commercial contracts is 4% per year, i.e. the reference interest plus an additional interest of 8 percentage points in accordance with Section XNUMXa of the Interest Act.
The provisions of the Competition Act regarding merger control will change - the notification threshold for mergers will be lowered
The notification threshold for mergers and acquisitions will be lowered by an amendment to the Competition Act. The change increases the number of mergers to be reported to the Finnish Competition and Consumer Authority (KKV), which are not reported based on the current notification threshold, but which could or would likely lead to harmful concentration of the market and harm to consumers.
As a result of the change, the Competition and Consumer Protection Agency (KKV) would in the future investigate business transactions where the combined turnover of the parties in Finland would exceed EUR 100 million, and the turnover of at least two parties in Finland would exceed EUR 10 million for each, instead of EUR 20 million under the current law.
Regarding the combined turnover of the parties, the proposed notification threshold would be a turnover of 100 million euros accumulated in Finland, instead of the global turnover of 350 million euros under the current law. In addition, the law also contains clarifications and corrections in other respects. The law will change on 1.1.2023 January 1297 (Act 2022/172, HE 2022/XNUMX).
The parliament is currently processing several others in the construction sector
important legislative projects such as the Construction Act and the regulation of housing association loans.
We will inform you about their situation later.
More information
Anu Kärkkäinen
Director, Economic Policy Affairs
Tel. 050 337 6699, anu.karkkainen(@)rt.fi
Juha Terho
Agent
Tel. 050 548 1610, juha.terho(@)rt.fi