Increasing municipalities' corporate tax share
Acts amending section 12 of the Tax Apportionment Act and section 124 of the Income Tax Act
Municipalities' share of revenue from corporate income tax will be increased and the central government's share decreased correspondingly. The amendment will compensate municipalities for revenue losses resulting from reductions in client fees for early childhood education and care.
- Status
- Passed
- Submitted
- 19 Sep 2017
- Latest event
- 13 Dec 2017
- Votes
- 0
- Speeches
- 7
- Confirmed
- 19 Dec 2017
- Statute
- 954/2017
- Source
- eduskunta.fi ↗
What is proposed
The municipal apportionment of corporate income tax will be increased by 1.01 percentage points from 30.34 per cent to 31.35 per cent, and the central government's apportionment will be reduced from 69.66 per cent to 68.65 per cent starting from 2018. At the same time, the income tax rate for partially tax-exempt and non-profit entities will be adjusted from 6.07 per cent to 6.27 per cent.
What it means
The change will transfer tax revenue from the state to municipalities. Municipalities' corporate tax revenue will increase by 60 million euros starting from tax year 2018, and central government tax revenue will decrease by the same amount (in the cash revenue for calendar year 2018, the impact is around 53 million euros). The amendments will enter into force on 1 January 2018.
How Parliament voted
The bill passed without a vote – no MP proposed rejecting or amending it in plenary.
Debate in the chamber
What was argued and where each group stood, followed by MPs' speeches verbatim from the parliamentary record. Speeches are shown in their original language.
7 speeches · 4 speakers · 1 debate
Key points of the debate
The debate addressed increasing municipalities' share of corporate income tax to compensate for lowering client fees for early childhood education and care. The proposal itself to raise the corporate tax share was widely considered a good and justified way to support municipalities. Disagreement arose, however, over whether the overall compensation provided by the Government would be sufficient to cover municipalities' actual revenue losses and costs.
- Is the overall compensation given to municipalities sufficient to cover the costs caused by the reductions in early childhood education and care fees?
- Centre PartyIn favour
The Centre Party considers lowering early childhood education and care fees and compensating municipalities for them very positive and justified. The group takes the view that the overall state of municipal finances has improved and provides a foundation for the provision of services.
”Varhaiskasvatusmaksujen poistaminen noin 7 000 perheeltä on mielestäni erittäin hyvä ja perusteltu asia. Sen kompensoiminen todellakin on mielestäni hyvin perusteltua.”
— Hannu Hoskonen - Finns PartyIn favour
The Finns Party supports increasing municipalities' apportionment of corporate tax because it strengthens municipal incentives for business policy and replaces lost fee revenue.
”Mutta tämä varsinainen esitys, joka koskee tätä yhteisöverojen jako-osuutta, on kyllä kannatettava.”
— Sami Savio - Social DemocratsIn favour with reservations
The Social Democrats consider raising the corporate tax share the right method of compensation, but are concerned that the overall amount proposed by the Government will not be sufficient to compensate municipalities for all expenses arising from the cuts to early childhood education and care fees.
”Kuntaliitto puhuu noin 130—140 miljoonan kompensaatiotarpeesta, joka siis menee pari—kolmekymmentä miljoonaa yli sen, mistä hallitus ikään kuin sanoo, että nyt kompensoidaan kaikki.”
— Pia Viitanen
This digest was generated by AI from 7 speeches 13 Sep 2026. Group positions are read from the speeches, not from votes; quotations were checked verbatim against the record.
Keskustelu päättyi. Asia lähetettiin valtiovarainvaliokuntaan.
Stages of consideration
The bill's path from the preliminary debate to the decision, as recorded by Parliament.
- 19 Sep 2017Eduskuntakäsittelyn vireilletulo · Valtiovarainministeriö
- 20 Sep 2017Lähetekeskustelu · Täysistunto
- 1 Dec 2017Valiokunnan mietintö tai lausunto · valtiovarainvaliokunta
- 4 Dec 2017Ensimmäinen käsittely · Täysistunto
- 8 Dec 2017Toinen käsittely · Täysistunto
- 12 Dec 2017Eduskunnan vastaus ja kirjelmä
Decisions by law proposal2
- 1Laki verontilityslain 12 §:n muuttamisestaHyväksytty · 954/2017 · 19 Dec 2017
- 2Laki tuloverolain 124 §:n muuttamisestaHyväksytty · 955/2017 · 19 Dec 2017
Proposed law text
The law proposals in the bill as the Government presented them. The final act may differ after committee consideration.
The law text is shown in Finnish or Swedish from Parliament's official documents; it is not translated into English.
1.Laki verontilityslain 12 §:n muuttamisesta
Eduskunnan päätöksen mukaisesti muutetaan verontilityslain (532/1998) 12 §, sellaisena kuin se on laissa 655/2015, seuraavasti:
12 §Veronsaajaryhmien jako-osuudet
Valtion jako-osuus on 68,65 prosenttia ja kuntien jako-osuus 31,35 prosenttia yhteisöverosta.
§
Tämä laki tulee voimaan päivänä kuuta 20 .
2.Laki tuloverolain 124 §:n muuttamisesta
Eduskunnan päätöksen mukaisesti muutetaan tuloverolain (1535/1992) 124 §:n 3 momentti, sellaisena kuin se on laissa 654/2015, seuraavasti:
124 §Veron määräytyminen
Edellä 21 §:n 1 momentissa tarkoitetun osittain verovapaan yhteisön ja 18 §:n 3 momentissa tarkoitetun tiekunnan sekä yleishyödyllisen yhteisön kiinteistöstä saadun tulon tuloveroprosentti on 6,27.
§
Tämä laki tulee voimaan päivänä kuuta 20 .
Main content of the bill (official)
The summary and title were produced with AI on 13 Sep 2026. They are not official documents – check the details in the original bill. The title and summaries are machine translations of the Finnish AI summaries. Speeches and quotations are always shown in their original language.