Finnvera plc to be exempted from income tax

At its meeting on 13 December 2005, the Cabinet Committee on Economic Policy gave its support to the view that Finnvera plc should be exempted from income tax. The exemption would be applied to Finnvera's activities in the fields of export credit guarantees and special guarantees as well as domestic loans and guarantees.

The benefits gained by exempting Finnvera from income tax would be passed on to the company's clients, both by lowering rates and by increasing risk-taking.

Finnvera plc has the statutory task of granting special financing on industrial policy grounds; the company carries out this task by offsetting deficiencies in the financial market for small and medium-sized enterprises and export enterprises. Finnvera does not compete with commercial banks. Tax liability is a disadvantage in Finnvera's work to accomplish its industrial policy tasks. In international comparison, virtually all export credit organisations comparable to Finnvera in the sector of export financing are exempt from taxes. Similar examples can also be found abroad in the sector of domestic financing.

Further information:
Mauri Pekkarinen, Minister of Trade and Industry, tel. +358 9 1606 3500
Risto Paaermaa, Deputy Director General, Ministry of Trade and Industry, tel. +358 50 526 3452
Sakari Arkio, Governmental Counsellor, Ministry of Trade and Industry, tel. +358 50 526 3500