The Ministry of Finance published the final government proposal for Finland’s new interest deductibility restrictions on 27 September 2018. The technicalities of the proposal are for the most part in line with the earlier draft proposal published for discussion purposes at the start of the year. However, the final proposal includes some changes and specifications that should make life for Finnish entities easier.
28.9.2018
Changes to Finnish Restrictions of Interest Deductibility Published
Mikko Alakare
Related services
Main Rules
Key Changes to Earlier Draft Proposal
Observations
The interest deductibility restrictions set forth in the published government proposal include the kinds of relief that many of parties wanted, the most important of which are likely to be the exemption for defined finance companies and the retention of the balance sheet-based exemption.
However, there are still problems in the proposed provisions, such as possible difficulties in using intra-group net interest expenses carried over from previous years, and the narrow scope of the exemption for old loans. Furthermore, the definition of financial expenses that are considered interest in this sense is still quite unspecified. Application of the balance sheet test could also prove difficult for Finnish companies which are a part of multinational groups.
The government proposal will next move on to Parliamentary hearings. According to the proposal, the new regulations would first be applied to taxation for fiscal year 2019.
Latest news
Latest references
eQ Fund Management Company Ltd – Structural Arrangement Related to Residential Funds
We acted as legal advisor to eQ Fund Management Company Ltd in a structural arrangement in which Special Investment Fund eQ Residential Fund and Special Investment Fund eQ Residential Fund II transferred their assets to the newly launched Special Investment Fund eQ Residential Fund III. In connection with the arrangement, eQ Residential Fund III raised 37 million euros in new capital, and its fundraising will continue throughout 2025. The portfolio of eQ Residential Fund III consists of 19 residential properties completed between 2021 and 2024, comprising nearly 1,400 apartments located in the Helsinki Metropolitan Area, Turku, and Tampere.
Case published 21.5.2025
eQ Community Properties Fund – Sale of two healthcare properties
We assisted eQ Community Properties Fund in the sale of two healthcare properties to a fund managed by Northern Horizon. The properties have a total floor area of approximately 3,500 square meters. The two properties are located in Espoo and Lahti. The Espoo asset was completed in 2018 and the Lahti asset was completed in 2023. Both assets are operated by Attendo, the leading care provider in the Nordic region.
Case published 9.5.2025
BMW AG – Enforcement of BMW’s trademark and design rights
We successfully represented BMW in an exceptionally long dispute over whether the spare rims sold by the defendant and the hub caps included in them infringed BMW’s trademark and design rights. The Market Court found that the sign used by the defendant caused a likelihood of confusion with BMW’s trademarks. The defendant had used the sign on the hub caps and in the marketing of the hub caps and rims, leading the Market Court to find that the defendant had infringed BMW’s trademark rights. The defendant admitted to infringing BMW’s Community design but denied the related injunction claim. However, the Market Court found that there was no particular reason to refrain from issuing an injunction. The Market Court prohibited the defendant from continuing to infringe BMW’s trademarks and Community design and ordered the defendant to alter or destroy the products and marketing materials that infringed BMW’s rights. Furthermore, the Market Court ordered the defendant to pay BMW EUR 70,000 in reasonable compensation and EUR 80,000 in damages for the trademark infringements, as well as EUR 7,000 in reasonable compensation and EUR 8,000 in damages for the design right infringement. The amounts can be considered exceptionally high in Finland. Additionally, the Market Court ordered the defendant to pay a significant portion of BMW’s legal costs with interest on late payment. In its decision of 11 March 2025, the Supreme Court of Finland did not grant the defendant leave to appeal, and also decided that there was no need to seek a preliminary ruling from the Court of Justice of the European Union. Thus, the Market Court’s judgements (MAO:494/18 and 517/2023) are final. In addition to the main dispute, BMW demanded in a separate proceeding that one of the defendant’s trademark registrations be revoked. A total of three separate legal proceedings were conducted in the Market Court regarding the revocation. The defendant’s trademark registration was ultimately revoked.
Case published 9.5.2025
DNA – Global brand portfolio management and IP enforcement
We are advising DNA Plc in brand protection and intellectual property enforcement matters globally. Our intellectual property team manages DNA’s global trademark portfolio, including registration, prosecution, opposition and enforcement. We also advise DNA in questions concerning consumer and marketing law, unfair competition, social media, domain names and cybersquatting. DNA Plc is one of Finland’s leading telecommunication companies. DNA offers connections, services and devices for homes and workplaces, contributing to the digitalisation of society. The company has approximately 3.7 million subscriptions in its fixed and mobile communications networks. In 2024, DNA’s total revenue was EUR 1,100 million, and the company employs about 1,600 people around Finland. DNA is part of Telenor Group.
Case published 7.5.2025