Additional profit tax for electricity companies and companies in the fossil fuel sector breaches EU law
Insights|March 20, 2026
The additional Finnish profit tax law for electricity companies and companies in the fossil fuel sector was in breach of the EU law. Companies that have paid the additional tax can reclaim it.
The electricity companies and companies in the fossil fuel sector have filed their additional profits tax returns based on FY 2023 accounts by 30 April 2024. The Finnish Tax Administration has assessed the tax by the end of October 2024 and sent a tax assessment decisions to the taxpayers. The tax return and tax assessment have been postponed for one year if the company did not have FY 2023 accounts.
The Helsinki Administrative Court issued on 9 June 2025 a decision according to which the additional profit tax was in breach of the EU law. The Tax Recipients’ Legal Services Unit filed a leave to appeal the decision to the Supreme Administrative Court. The Finnish Supreme Administrative Court published on 3 February 2026 a notification informing that it did not grant a leave to appeal the Administrative Court’s decision. The Supreme Administrative Court’s judgement means that the decision issued by the Helsinki Administrative Court is final and binding.
All companies who have paid the additional profit tax can get a tax refund on the paid amount. According to the information received from the Finnish Tax Administration they do not automatically refund the paid additional profits tax. In practice this means that the taxpayer should file a claim for correction to the Tax Administration by the end of 2027 to receive the refund.
If your company has paid the additional profit tax, it’s advisable to file the claim for correction without further delay. Our tax team is happy to assist in all phases concerning the correction claim procedure or discuss the situation further.
Read more insights about windfall taxation in the energy sector: