WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.8 
22 November 2007 
 (07-5156) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
EUROPEAN COMMUNITIES 
 
Addendum
 
   The following addendum to the notification of the European Communities relates to subsidy 
programmes of Finland .   
 
_______________ 
 G/SCM/N/155/EEC/Add.8 
Page 2  
 
  FINLAND  
 
TABLE OF CONTENTS 
 
 
 Page  
 
I. AID TO SMALL AND MEDIUM-SIZED ENTERPRISES .................................................4  
A. DEVELOPMENT AID FOR SME S...................................................................................................4  
B. STATE AID FOR THE INTERNATIONALISATION OF SME S............................................................5  
C. LOAN PROGRAMME FOR SME S (FINNVERA PLC )........................................................................5  
D. DEVELOPMENT LOAN PROGRAMME FOR SMES (FINNVERA PLC ) ...............................................6  
E. ENTREPRENEUR LOAN (FINNVERA PLC ) .....................................................................................7  
F. ENVIRONMENT LOAN PROGRAM FOR SME S (FINNVERA PLC ) ...................................................8  
G. OPERATIONAL CONDITIONS AID.................................................................................................9  
H. GUARANTEE PROVISION AID....................................................................................................10  
I. RESCUE AND RESTRUCTURING AID TO SMALL AND MEDIUM -SIZED ENTERPRISES ................10  
II. AID FOR RESEARCH AND DEVELOPMENT.................................................................11  
A. AID FOR PROMOTING R&D.......................................................................................................11  
B. GRANT FOR RESEARCH AND DEVELOPMENT (ÅLAND ) ............................................................12  
C. GMP  - MANUFACTURING SPACE FOR BIO-ENTERPRISES .........................................................13  
III. REGIONAL AID ................................................................................................................... .14 
A. INVESTMENT AID......................................................................................................................14  
B. REGIONAL TRANSPORT SUBSIDY ..............................................................................................15  
C. ACCELERATED REGIONAL DEPRECIATION ...............................................................................16  
D. GRANT FOR INVESTMENTS (ÅLAND ) ........................................................................................17  
IV. AID IN THE FIELD OF ENERGY ......................................................................................17  
A. ENERGY GRANTS ......................................................................................................................17  
B. AID MEASURES CONNECTED TO ENERGY TAXATION ..............................................................18  
C. DIFFERENTIATED TAX RATE FOR ELECTRICITY CONSUMED BY INDUSTRY .............................19  
D. WASTE OIL MANAGEMENT FINANCED BY WASTE OIL CHARGES ............................................20  
E. AID FOR CHIPPING OF ENERGY WOOD .....................................................................................21  
F. INVESTMENT AID FOR BIOFUEL PLANT (ÅLAND ).....................................................................22  
V. OTHER SUBSIDIES ..............................................................................................................23  
A. ICE DUES CLASSIFICATION ALLOWANCE .................................................................................23  
B. INVESTMENT AID FOR BUSINESSES PROCESSING AGRI-BASED PRODUCTS .............................23  
C. AID FOR DEVELOPMENT PROJECTS IN THE FOOD INDUSTRY ....................................................25  
D. STATE AID TO CINEMA AND OTHER AUDIOVISUAL PRODUCTION ...........................................26  
E. TONNAGE TAXATION ................................................................................................................27   G/SCM/N/155/EEC/Add.8 
 Page 3 
 
 
  F. SUBSIDY TO PASSENGER VESSELS ............................................................................................28  
G. SUBSIDY TO CARGO VESSELS ...................................................................................................29  
H. TRAINING AID IN ÅLAND ..........................................................................................................30  
 
 
Please note:  1 EURO = 5,94573 FIM (FINNISH MARKS).   
 G/SCM/N/155/EEC/Add.8 
Page 4  
 
  I. AID TO SMALL AND MEDIUM-SIZED ENTERPRISES 
A. D
EVELOPMENT AID FOR SME S 
1. Title of the subsidy programme  
  Development aid for SMEs.   
 
2. Period covered by the notification
 
 
2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy  
  Aid to SMEs.    4. Background and authority for the subsidy
 
 
 Development aid can be granted to SMEs for their development projects aimed at improving 
the standard of firm's products or its production management or marketing.  Aid can also be granted to 
have the potential and operating conditions for projected new firm verified.     The firm is a SME with personnel not exceeding 250 employees with either an annual 
turnover not exceeding 40 million euros or a balanc e sheet total not exceeding 27 million euros and 
with not more than a quarter of its shares in the hands of a company exceeding such a limit.  The aid 
is granted by the Ministry of Trade and Indust ry and the Business Departments of the Regional 
Employment and Economic Centres (Aid to Business Act 1068/2000).    
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 See point 4.   
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
 
The amount granted in 2005 was MEUR 6,86.   
The amount granted in 2006 was MEUR 5,77.    
 8. Duration of the subsidy and/or any other time limits attached to it
 
 
There are no time limits attached to this programme.   
 
9. The trade effects of the subsidy  
  No effects on international trade.    G/SCM/N/155/EEC/Add.8 
 Page 5 
 
 
  B. STATE AID FOR THE INTERNATIONALISATION OF SME S 
1. Title of the subsidy programme  
  State aid for the internationalisation of SMEs.    
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 The subsidy is granted to SMEs for deve lopment of their promotion, marketing and 
internationalisation skills.  The purpose of the subs idy is to increase the number of SMEs and the 
growth of the exporting enterprises in Finland.    
4. Background and authority for the subsidy
 
  Subsidy is granted by the Ministry of Trade and Industry and the Business Departments of the 
regional Employment and Economic Centres (Aid to Business Act 1068/2000).    5. Form of the subsidy
 
 
 Grant.    6. To whom and how the subsidy is provided
 
 
 The State aid for business internationalisation is  provided to Finnish SMEs on the application 
to the Ministry of Trade and Industry or to the Business Departments of the regional Employment and Economic Centres.    7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
 
 The total amount of grants in 2005 was MEUR 16,70.    The total amount of grants in 2006 was MEUR 24,41.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 There are no time limits attached to this programme.    9. The trade effects of the subsidy
 
  No effects on international trade.    
C. L
OAN PROGRAMME FOR SME S (FINNVERA PLC ) 
1. Title of the subsidy programme  
  Loan programme for SMEs (Finnvera plc).  Soft loans for investments and working capital.   
 
2. Period covered by the notification
 
  2005 – 2006.   G/SCM/N/155/EEC/Add.8 
Page 6  
 
  3. Policy objective and/or purpose of the subsidy
 
  Aid for SMEs:  access to risky loans on a reasonable interest rate level.   
 4. Background and authority for the subsidy
 
 
 The authorisation to grant these loans is  decided annually in the State budget.   
 5. Form of the subsidy
 
 
 Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy.   
 6. To whom and how the subsidy is provided
 
  The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (state-owned company that was formed  by merging the activities of Kera Ltd and the 
Finnish Guarantee Board on 1 January 1999).  Subsidy el ement is in availability and in interest rate of 
the loans.    7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
 
 In 2005, the amount of aid was MEUR 10,3.    In 2006, the amount of aid was MEUR 11,6.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 Indeterminate.  The subsidy is given during years to maturity, which is 5-10 years.    9. The trade effects of the subsidy
 
  No effects on international trade.   
 
D. D
EVELOPMENT LOAN PROGRAMME FOR SMES (FINNVERA PLC ) 
1. Title of the subsidy programme  
  Development loan programme for SMEs (Finnvera  plc).  Soft loans for product development 
and managerial skills.   
 2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  Aid for SMEs.    4. Background and authority for the subsidy
 
 
 The authorisation to grant these loans is  decided annually in the State budget.    G/SCM/N/155/EEC/Add.8 
 Page 7 
 
 
  5. Form of the subsidy  
  Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy.    6. To whom and how the subsidy is provided
 
 
 The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (state-owned company that was formed  by merging the activities of Kera Ltd and the 
Finnish Guarantee Board on 1 January 1999).  Subsidy el ement is in availability and in interest rate of 
the loans.   
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  In 2005, the amount of aid was MEUR 2,7.   
 In 2006, the amount of aid was MEUR 2,1.   
 8. Duration of the subsidy and/or any other time limits attached to it
 
  Indeterminate.  The subsidy is given all the years to maturity, usually 5 years.   
 
9. The trade effects of the subsidy
 
  No effects on international trade.   
 
E. E
NTREPRENEUR LOAN (FINNVERA PLC ) 
1. Title of the subsidy programme  
  Start-up loan programme for entrepreneurs (Finnve ra plc).  Soft loans for entrepreneurs when 
establishing an enterprise.    2. Period covered by the notification
 
 
 2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Aid to new enterprises (entrepreneurs).   
 4. Background and authority for the subsidy
 
  The authorisation to grant these loans is  decided annually in the State budget.   
 
5. Form of the subsidy
 
  Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy.    6. To whom and how the subsidy is provided
 
 
 The subsidy is provided to persons who st art a new manufacturing, service or tourism 
enterprise.  It is granted by Finnvera plc (sta te-owned company that was formed by merging the 
activities of Kera Ltd and the Finnish Guarantee Bo ard on 1 January 1999).  Subsidy element is in 
availability and in interest rate of the loans.   G/SCM/N/155/EEC/Add.8 
Page 8  
 
  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  In 2005, the amount of aid was MEUR 5,0.    In 2006, the amount of aid was MEUR 5,3.   
 
8. Duration of the subsidy and/or any other time limits attached to it
 
  Indeterminate.  The subsidy is given all the years to maturity, i.e. 10 years.    
9. The trade effects of the subsidy
 
  No effects on international trade.   
 
F. E
NVIRONMENT LOAN PROGRAM FOR SME S (FINNVERA PLC ) 
1. Title of the subsidy programme  
  Environment loan program for SMEs (Finnvera plc) .  Soft loans for environmental investments.   
 2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
  Aid to SMEs:  to promote environment protection, energy saving, circulation of raw 
materials etc.   
 4. Background and authority for the subsidy
 
  The authorisation to grant these loans is  decided annually in the State budget.   
 
5. Form of the subsidy
 
  Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy.    6. To whom and how the subsidy is provided
 
 
 The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (state-owned company that was formed  by merging the activities of Kera Ltd and the 
Finnish Guarantee Board on 1 January 1999).  Subsidy element is in availability of the loans and in 
interest rates.    
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  In 2005, the amount of aid was MEUR 2,7.    In 2006, the amount of aid was MEUR 2,6.   
 
8. Duration of the subsidy and/or any other time limits attached to it
 
  Indeterminate.  The subsidy is given all th e years to maturity, usually 5-10 years.   
  G/SCM/N/155/EEC/Add.8 
 Page 9 
 
 
  9. The trade effects of the subsidy  
  -  G. O
PERATIONAL CONDITIONS AID 
1. Title of the subsidy programme  
  Operational conditions aid.    2. Period covered by the notification
 
 
 2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Aid to SMEs:  to develop enterprise support services for starting and existing SMEs.   
 4. Background and authority for the subsidy
 
  The aid is granted by the Ministry of Trade and Industry and the Business Departments of the regional Employment and Economic Development Centres (Aid to Business Act 1068/2000).   
 
5. Form of the subsidy
 
  Grant.    
6. To whom and how the subsidy is provided
 
  Aid can be granted to public institutions, f oundations, private persons and enterprises.  To 
qualify for aid, a project should create new service activities in the region and should be of essential significance for the regions SMEs.  Mainly, aid may be granted for projects associated with 
counselling, research, quality management, marketi ng, product development and design services.   
 
 In exceptional cases aid can be granted to privat e enterprises.  Aid to investments for small 
enterprises is limited to 15 per cent (gross) and 7,5 per cent (gross) for medium-sized companies.   
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  In 2005, the amount was MEUR 7,1.    In 2006, the amount was MEUR 4,4.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 Indeterminate.    9. The trade effects of the subsidy
 
 
 No effects on international trade.   G/SCM/N/155/EEC/Add.8 
Page 10  
 
  H. G
UARANTEE PROVISION AID 
1. Title of the subsidy program  
  Guarantee provision aid (XS 32/2004).    
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Aid to SMEs.    4. Background and authority for the subsidy
 
 
 Finnvera grants guarantee provision aid to the certain guarantees that are granted in eligibility 
area of EU's structural funds.  Decisions are made  by Finnvera Plc.  Budge t of the guarantee provision 
aid is decided regionally yearly basis and aid is  partially financed by the European regional 
development fund.    5. Form of the subsidy
 
 
 Subsidy in guarantee provision.    6. To whom and how the subsidy is provided
 
 
 The subsidy is provided to SMEs with the gua rantee decision as a reduction of provision.  The 
loan is granted from the bank.    7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
 
 2005 0,7 Me.   
2006  1,1 Me.   
 8. Duration of the subsidy and/or any other time limits attached to it
 
 
 There are no time limits attached to this programme.    
 9. The trade effects of the subsidy
 
  No effects on international trade.   
 
I. R
ESCUE AND RESTRUCTURING AID TO SMALL AND MEDIUM -SIZED ENTERPRISES  
1. Title of the subsidy program  
  Rescue and restructuring ai d to SMEs (N 58/2004).    G/SCM/N/155/EEC/Add.8 
 Page 11 
 
 
  2. Period covered by the notification  
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Aid to SMEs.    4. Background and authority for the subsidy
 
 
 Rescue and restructuring aid is granted to SMEs in order to turn around enterprises in 
difficulty.  The aid is granted in compliance w ith the guidelines of European Commission concerning 
aid for enterprises in difficulty.    5. Form of the subsidy
 
 
 Loan, guarantee, reduction of interest, abatement of debts.    6. To whom and how the subsidy is provided
 
  SMEs in difficulty in compliance with the definition of European Commission.   
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The total amount of grants in 2005 was MEUR 0,00.   
 The total amount of grants in 2006 was MEUR 0,17.   
 8. Duration of the subsidy and/or any other time limits attached to it
 
  The scheme will expire in 2009.    
9. The trade effects of the subsidy
 
  No effects on international trade.   
 
 
II. AID FOR RESEARCH AND DEVELOPMENT 
A. A
ID FOR PROMOTING R&D 
1. Title of the subsidy programme  
  Aid for promoting R&D.    
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Aid for research and development.   G/SCM/N/155/EEC/Add.8 
Page 12  
 
  4. Background and authority for the subsidy
 
  Legal basis:  Council of State decision on 17 Ju ne 1998 on general terms of grants and soft 
loans for R&D.    
5. Form of the subsidy
 
  Grant, soft loan and capital loan.    6. To whom and how the subsidy is provided
 
 
 The subsidy is provided for enterprises on th e basis of applications.  The normal maximum 
aid intensity is 50 per cent for industrial resear ch and 25 per cent for pre-competitive development 
activity.  These maximum levels can be raised up to 75  per cent in industrial research and up to 50 per 
cent in pre-competitive development activity.   
 
 The subsidy is granted by the National Technology Agency (TEKES).    7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)   
  
 In 2005, the paid amount of grants was MEUR 141:   
 
- for loans MEUR 31 (aid element MEUR 4,65), and  
- for capital loans MEUR 30 (aid element MEUR 4,50).   
 
 In 2006, the paid amount of grants was MEUR 151:   
 
- for loans MEUR 44,8 (aid element MEUR 6,72), and  
- for capital loans MEUR 16,12 (aid element MEUR 2,42).   
 8. Duration of the subsidy and/or any other time limits attached to it
 
 
 The subsidy programme will be in force till 31 August 2008.    9. The trade effects of the subsidy
 
 
 No effects on international trade.   
 
B. GRANT FOR RESEARCH AND DEVELOPMENT (ÅLAND ) 
1. Title of the subsidy programme  
  Grant for research and development (Åland).   
 
2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and /or purpose of the subsidy
 
  Aid to SMEs for research and development.    G/SCM/N/155/EEC/Add.8 
 Page 13 
 
 
  4. Background and authority for the subsidy  
  The annual budget of the Government of Åland.    5. Form of the subsidy
 
 
Grant.   
 6. To whom and how the subsidy is provided
 
 
 The aid is provided to companies and orga nizations.  The subsidy is granted by the 
Government of Åland.    7. The total amount or the annual amount budgeted for the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year)  
 
 The annual amount of grants in 2005 was MEUR 0,04.    The annual amount of grants in 2006 was MEUR 0,09.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 Indeterminate.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  No effects on international trade.   
 
C. GMP
 - MANUFACTURING SPACE FOR BIO-ENTERPRISES  
1. Title of the subsidy programme  
  GMP (Good Manufacturing Practise) manufacturing space for bio-enterprises.   
 
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 The promotion of SMEs' pilot production.  The purpose of the project is to create operational 
conditions in the region of Oulu for enterpri ses ("bio-enterprises") manufacturing bio-technology 
products of well-being and health.    4. Background and authority for the subsidy
 
 
 The GMP - operational environment will be rent ed for payment to SMEs' pilot production.   
  Authority:  City of Oulu.    
5. Form of the subsidy
 
  Rent support.   G/SCM/N/155/EEC/Add.8 
Page 14  
 
  6. To whom and how the subsidy is provided
 
  The rent support will be provided to the ente rprises using the GMP-operational environment.   
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The amount granted in 2005 was MEUR 0,60.    The amount granted in 2006 was MEUR 0,56.    
8. Duration of the subsidy and/or any other time limits attached to it
 
  Until 30 April 2007.    9. The trade effects of the subsidy
 
 
 No effects on international trade.     
III. REGIONAL AID 
A. I
NVESTMENT AID 
1. Title of the subsidy programme  
  Investment aid.    2. Period covered by the notification
 
 
 2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
  Regional aid.   
 
4. Background and authority for the subsidy
 
  Investment aid can be granted to firms towa rd fixed assets needed for business operations and 
for making alterations or improvements to such fixed assets.   
 
 The aid is granted by the Ministry of Trade and Industry and the Business Departments of the regional Employment and Economic Development Centres (Aid to Business Act 1068/2000).   
 5. Form of the subsidy
 
 
 Grant.   
 6. To whom and how the subsidy is provided
 
  Investment aid can be granted to firms in the regional development area.  In other parts of 
Finland, investment aid can be granted only to small businesses.    G/SCM/N/155/EEC/Add.8 
 Page 15 
 
 
  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The amount granted in 2005 was 66,29 MEUR.    The amount granted in 2006 was 76,06 MEUR.   
 
8. Duration of the subsidy and/or any other time limits attached to it
 
  Until 31 December 2006.    
9. The trade effects of the subsidy
 
  No effects on international trade.   
 
B. R
EGIONAL TRANSPORT SUBSIDY  
1. Title of the subsidy programme  
  Regional transport subsidy.    2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
  Regional aid (SMEs).   
 
4. Background and authority for the subsidy
 
  Transport of goods in Finland, which start from regions, which have less than 12,5 inhabitants per km
2:  Lapland, Ostrobothnia, Kainuu, North Karelia and South Savo, are 
eligible for subsidy (Act 954/1981 as changed by Act 613/1996).   
 
 Ministry of Trade and I ndustry (Industries Department) grants the aid.   
 5. Form of the subsidy
 
 
 Grant paid semi-annually on basis of applications and evidence.   
 6. To whom and how the subsidy is provided
 
  The subsidy can be granted for transports star ting from the place of processing of products, 
which have been processed by small or medium-s ized companies within Lapland, Ostrobothnia, 
Kainuu, North Karelia and South Savo.  Transport subsidy can be granted for carriage of the 
following products:  Food and drinks, earths and stone, wood and wood products, products of the paper industry, products of the metal industry, machinery and apparatus and products of the chemical industry.    
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The actual payments in 2005 were MEUR 4,52.    The actual payments in 2006 were MEUR 4,8.   G/SCM/N/155/EEC/Add.8 
Page 16  
 
  8. Duration of the subsidy and/or any other time limits attached to it
 
  There are no time limits attached to this programme.    9. The trade effects of the subsidy
 
 
No effects on international trade.   
 
C. ACCELERATED REGIONAL DEPRECIATION  
1. Title of the subsidy programme  
 
 Depreciation allowance in development areas for SMEs.    2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
  Regional aid for SMEs.    
4. Background and authority for the subsidy
 
  Legal basis:  Act 1262/1993 as amended by acts 1736/1995, 32/1998, 1215/1998, 964/2000 and 901/2001.  The responsible authority is the Ministry of Finance.    
5. Form of the subsidy
 
  Tax benefit (accelerated depreciation).    6. To whom and how the subsidy is provided
 
 
 The subsidy is granted in the national developm ent areas I and II.  Eligible sectors for this aid 
are manufacturing, hotel and lodging services for their investments in buildings and machinery.  From 1998 onwards this aid has been granted onl y to small and medium sized enterprises and 
sensitive sectors of agricu lture, synthetic fibres, the automobile industry, steel and shipbuilding has 
not been included.  The maximum depreciation rate  is increased by 50 per cent (for machinery from 
25 per cent to 37,5 per cent and for industrial buildings from 7 per cent to 10,5 per cent).  
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The amount granted in 2005 was MEUR 1,0.   
 The amount granted in 2006 was MEUR 1,0.   
  Maximum possible aid intensity that, accordi ng to the rules and conditions on which the 
subsidy is granted, can be obtained in fa vour of any one project is 2 per cent.   
 
8. Duration of the subsidy and/or any other time limits attached to it
 
  Indeterminate.    G/SCM/N/155/EEC/Add.8 
 Page 17 
 
 
  9. The trade effects of the subsidy  
  No effects on international trade.   
 
D. G
RANT FOR INVESTMENTS (ÅLAND ) 
1. Title of the subsidy programme  
  Grant for investments (Åland).    2. Period covered by the notification
 
 
 2005 – 2006.    3. Policy objective and /or purpose of the subsidy
 
 
 Regional aid (investments in equipment and buildings).   
 4. Background and authority for the subsidy
 
  Company aid act of Åland (ÅFS 46/89).    
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 The aid is provided to SMEs.  The subsidy is granted by the Government of Åland.   
 7. The total amount or the annual amount budgeted for the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year)  
 
 The annual amount of grants in 2005 was MEUR 0,00.   
 The annual amount of grants in 2006 was MEUR 0,13.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 31 December 2006.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  No effects on international trade.    
 
IV. AID IN THE FIELD OF ENERGY 
A. E
NERGY GRANTS  
1. Title of the subsidy programme  
 
 Energy grants.   G/SCM/N/155/EEC/Add.8 
Page 18  
 
  2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Promotion of energy conservation, energy efficiency and the use of renewable energy;  reduction of negative environmental impacts asso ciated with energy production and usage and 
contribution to energy security and diversity of energy supply.    
4. Background and authority for the subsidy
 
  Legal basis:  Decision of the Council of Stat e on the general conditions for awarding energy 
grants (29/1999) and since year 2002 Decree of th e Council of State on the general conditions for 
awarding energy grants (625/2002).   
 
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 Subsidies can be granted to enterprises a nd communities on a case-by-case consideration.  
Subsidies are granted by the Ministry of Trade and Industry (Energy Department) on application and 
they are paid according to the progress of the project.    
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  In 2005 was MEUR 31,13.    In 2006 was MEUR 32.    
8. Duration of the subsidy and/or any other time limits attached to it
 
  The duration of the subsidy programme is five  years (valid to the end of year 2007).  The 
programme commenced in its present form in 1999.    
9. The trade effects of the subsidy
 
  No effects on international trade.   
 
B. A
ID MEASURES CONNECTED TO ENERGY TAXATION  
1. Title of the subsidy programme  
 
 Aid measures connected to energy taxation.    2. Period covered by the notification
 
 
 2005 – 2006.    G/SCM/N/155/EEC/Add.8 
 Page 19 
 
 
  3. Policy objective and/or purpose of the subsidy  
  The general aim of the programme is environmenta l.  The purpose is i.e. to promote the use of 
renewable energy.    
4. Background and authority for the subsidy
 
  Legal basis:  Act 1260/1996.    5. Form of the subsidy
 
 
 Grant.    6. To whom and how the subsidy is provided
 
 
 The aid is granted for plants producing electri city from wood and wood-based fuels, for small 
power plants, for wind power as well as for electricity produced from the waste gas of metallurgic processes.  The aid is equal to the electric ity tax (EUR 0,0069 per kWh for wind power and 
EUR 0.0042 per kWh for others).    7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The amount of aid in 2005 was MEUR 59,58.    The amount of aid in 2006 was MEUR 44,50.    
8. Duration of the subsidy and/or any other time limits attached to it
 
  Indeterminate.    9. The trade effects of the subsidy
 
 
 No effects on international trade.   
 C. D
IFFERENTIATED TAX RATE FOR ELECTRICITY CONSUMED BY INDUSTRY  
1. Title of the subsidy programme  
 
 Differentiated tax rate for electricity consumed by industry.   
 2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  Subsidy to industry:  to improve competitiven ess of the industry when tax on electricity is 
levied in order to reach environmental and energy policy coals.    
4. Background and authority for the subsidy
 
  The aid is granted by the district customs offices.   G/SCM/N/155/EEC/Add.8 
Page 20  
 
  5. Form of the subsidy
 
  Differentiated tax rate.    6. To whom and how the subsidy is provided
 
 
 Electricity is taxed on the basis of category II (i ndustry) if it is used in  the mining of minerals, 
industrial manufacturing and processing of goods or  professional glasshouse cultivation.  All other 
cases fall under category I.    
Electricity tax rate  cent/kWh 
category I  0.743 
category II  0.453 
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
 
 The amount granted in 2005 was MEUR 121,0.   
 The amount granted in 2006 was MEUR 131,7.    8. Duration of the subsidy and/or any other time limits attached to it
 
  2001 – 2011.   
 
9. The trade effects of the subsidy
 
  No effects on international trade.   
 
D. W
ASTE OIL MANAGEMENT FINANCED BY WASTE OIL CHARGES  
1. Title of the subsidy programme  
  Waste oil management financed by waste oil charges.    2. Period covered by the notification
 
 
 2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Environmental protection.   
 4. Background and authority for the subsidy
 
  The Ministry of the Environment is the responsible authority.    
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 The subsidy can be provided to enterprises,  which have made a contract on waste oil 
management with The Ministry of Environment.    G/SCM/N/155/EEC/Add.8 
 Page 21 
 
 
  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The amount of aid in 2005 was MEUR 1,60.    In 2006, it was MEUR 2,48.   
 
8. Duration of the subsidy and/or any other time limits attached to it
 
  Indeterminate.    
9. The trade effects of the subsidy
 
  No effects on international trade.    E. A
ID FOR CHIPPING OF ENERGY WOOD 
1. Title of the subsidy program  
  Aid for chipping of energy wood.    2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
  Environmental protection.  By using wood for energy production we can decrease 
CO
2 emission.  If we use one solid cubic meter wood for energy it means 0,6 tons CO 2 reduction in 
CO 2 emissions assuming that wood replaces oil.   
 4. Background and authority for the subsidy
 
  The aid for chipping of energy wood is one part of the aid scheme on the financing of 
sustainable forestry in Finland.  The finance is provided for private forest owners.  The wood which 
has been harvested while tending young stands or  in connection of non commercial thinnings is 
collected and chipped for energy production.  Th e applications on finance must be submit to the 
regional forest centers and these centers  approve of the applications.   
 
5. Form of the subsidy
 
  The subsidy is a grant 1,7 euros per loose cubic meter.    6. To whom and how the subsidy is provided
 
 
 The subsidy can be provided for the private fo rest owners, the entrepreneurs or the forest 
owners' association if they do the chipping.    7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
 
 The total amount of grants in 2005 was MEUR 0,9.    The total amount of grants in 2006 was MEUR 1,18.   G/SCM/N/155/EEC/Add.8 
Page 22  
 
  8. Duration of the subsidy and/or any other time limits attached to it
 
  The scheme will expire 31 December 2007.    9. The trade effects of the subsidy
 
 
 No effects on international trade.    F. I
NVESTMENT AID FOR BIOFUEL PLANT (ÅLAND ) 
1. Title of the subsidy programme  
 
 Investment aid for biofuel plant (Åland).    2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and /or purpose of the subsidy
 
  Environmental protection.    
4. Background and authority for the subsidy
 
  Annual budget for the Åland islands (ÅFS 2006:1).    5. Form of the subsidy
 
 
 Grant.    6. To whom and how the subsidy is provided
 
  The aid is provided to a small enterprise.  The subsidy is granted by the Government 
of Åland.   
 7. The total amount or the annual amount budgeted for the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year)  
 
 The total amount of the grant is 2.630.162 €, approved 24 October 2006.   
  The grant will be paid in 3 parts, 1.200.000 € in August 2007, 1.200.000 € in January 2008 
and 230.162 € in June 2008.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 31 December 2008.    9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 No effects on international trade.   
  G/SCM/N/155/EEC/Add.8 
 Page 23 
 
 
  V. OTHER SUBSIDIES 
A. ICE DUES CLASSIFICATION ALLOWANCE  
1. Title of the subsidy programme  
  Ice dues classification allowance.   
 
2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  To support the necessary transport capacity fo r foreign trade taking into account the Finnish 
climate and other natural circumstances.    
4. Background and authority for the subsidy
 
  Legal basis:  Act 433/1981, section 6 as amended by acts 1543/1992, 1258/1996 and 
1060/1999.  The responsible authority is the Ministry of Finance.    5. Form of the subsidy
 
 
 Tax allowance.    6. To whom and how the subsidy is provided
 
 
 The subsidy applies to ship orders made during 1994 - 2000.  The ship-owner can deduct 
3 per cent of the acquisition costs of the ship from the taxable income.  The allowance is granted in 
the tax year when the ship has been take n into use and in the following year.   
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
 
 The amount granted in 2005 was MEUR 0,28.    The amount granted in 2006 was MEUR 0 (the scheme expired in 2005).    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 The scheme expired in 2005.    9. The trade effects of the subsidy
 
  No effects on international trade.   
 
B. I
NVESTMENT AID FOR BUSINESSES PROCESSING AGRI-BASED PRODUCTS  
1. Title of the subsidy programme  
  Investment aid programme related to pro cessing and marketing agricultural products (Aid 
No. N 59/2000).   G/SCM/N/155/EEC/Add.8 
Page 24  
 
  2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 The aim of the investment aid for processing and marketing of agricultural products is to improve the long-term competitiveness of SMEs in particular and to promote their internationalisation.  The aid is granted fo r projects of enterprises concerning processing and 
marketing of agricultural products lis ted in Annex I to the EC Treaty, in which the aid is expected to 
have a considerable impact on:   
  (1) improvement of the enterprise's competi tiveness e.g. regarding the technical standard 
of its products and production, 
 (2) raising of the level of productivity, or 
 (3) promotion of the enterprise's internationalisation.   
 4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)  
  In the Budget, national funds are annually allocated for the Aid Programme concerning 
processing and marketing agricultural products (which  includes both investment aid and development 
aid, N 59/2000).  The aid is based on the Aid to  Business Act (1068/2000) of 15 December 2000 and 
on the Government Decree on investment aid and development aid for the processing and marketing 
of agricultural products (1201/2000) of 21 December 2000.  The aid is granted by the Ministry of 
Trade and Industry and the regional T&E Centres.   
 
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 Investment aid for processing and marketing of agricultural products shall be granted to 
enterprises as stated in point 3 above.     The basis for investment aid may be expend iture incurred by construction, acquisition and 
improvement of premise as well as by purchases of new machinery and equipment.   
  The aid granted may be no more than 10 per cen t to 40 per cent of the eligible expenditure, 
depending on the assisted area and the size of the enterprise concerned.    7. The total amount or the annual amount budgeted for the subsidy
 
 
 Investment aid granted in 2005 was MEUR 2,18.    Investment aid granted in 2006 was MEUR 2,79.    8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  The programme entered into force on 1 January 2001, and will be in force till 31 December 2006.    G/SCM/N/155/EEC/Add.8 
 Page 25 
 
 
  9. The trade effects of the subsidy  
  No effect on international trade.    C. A
ID FOR DEVELOPMENT PROJECTS IN THE FOOD INDUSTRY  
1. Title of the subsidy programme  
  Development aid programme for SMEs related to processing and marketing of agricultural products (Aid No. N 59/2000).    
2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
 
 The aim of the development aid for processing and marketing of agricultural products is to 
improve the long-term competitiveness of SMEs and to  promote their internationalisation.  The aid is 
granted for projects of SMEs concerning processing a nd marketing of agricultural products listed in 
Annex I to the EC Treaty, which are expected to improve the standard of the products and production 
methods of enterprises and their business manageme nt and marketing skills, thereby promoting their 
internationalisation.  Besides these, development aid may be granted for examining the conditions for 
establishment and operation of enterprises.     A small and medium-sized enterprise refers to an SME that has fewer than 250 employees and a maximum annual turnover of € 40 million, or a balance sheet total of € 27 million and no more 
than one quarter of the SME's shares are owned by a company larger than the SME itself.   
 4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)  
  In the Budget, national funds are annually allocated for the Aid Programme concerning 
processing and marketing agricultural products (which  includes both investment aid and development 
aid, N 59/2000).  The aid is based on the Aid to  Business Act (1068/2000) of 15 December 2000 and 
on the Government Decree on investment aid and development aid for the processing and marketing 
of agricultural products (1201/2000) of 21 December 2000.  The aid is granted by the Ministry of 
Trade and Industry and the regional T&E Centres.   
 
5. Form of the subsidy
 
  Grant.   
 6. To whom and how the subsidy is provided
 
 
 Development aid for processing and marketing of  agricultural products shall be granted to 
enterprises as stated in point 3 above.     The basis for development aid may be expenditure  incurred by the use of external experts and 
services, machinery and equipment needed for de velopment of products and production processes, 
raw material and participation in an exhibition orga nised abroad.  In projects developing products and 
production processes, the aid granted may be no mo re 35 per cent to 45 per cent and in other 
development projects no more than 50 per cent of the eligible expenditure.    G/SCM/N/155/EEC/Add.8 
Page 26  
 
  7. The total amount or the annual amount budgeted for the subsidy
 
  Development aid granted in 2005 was MEUR 0,29.    Development aid granted in 2006 was MEUR 0,11.    
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  The programme entered into force on 1 January 2001, and will be in force till 31 December 2006.   
 
9. The trade effects of the subsidy
 
  The development aid has no effect on international trade.    
D. S
TATE AID TO CINEMA AND OTHER AUDIOVISUAL PRODUCTION  
1. Title of the subsidy programme  
  State aid to cinema and othe r audiovisual production.   
 
2. Period covered by the notification
 
 
 2005 - 2006.   
 3. Policy objective and/or purpose of the subsidy
 
 
 To promote diversity, the quality of films and audiovisual culture in Finland and to develop 
the infrastructure of production companies.    4. Background and authority for the subsidy
 
  State aid is governed by the Film Promotion Act (28/2000) and the Film Promotion Decree.  
The Act determines the general principles underlying stat e aid to cinema.  According to the Act, the 
Ministry of Education and Culture can allocate funds from the state budget for the production and distribution of films and other audiovisual progr ammes, and for the promotion of culture.   
  The Act provides that the aid is allocated by the Finnish Film Foundation and the National 
Council for Cinema.  These institutions have devised  guidelines for the purpose.  According to the 
guidelines for film production support, no kind of suppor t can be granted (1) to television companies 
or to companies in which a television company holds a stake of 15 per cent or more;  (2) to a state, 
municipal or church authority or institution;  (3 ) to a company in which the State has a majority 
holding;  or (4) to any organisation or instituti on comparable to the above.  Nor can support be 
granted for a production that is intended for the marketing of a product, a range of products or 
services, or anything comparable to these.  
 5. Form of the subsidy
 
  Grant.   
 
6. To whom and how the subsidy is provided
 
  The main target groups are production companies,  but also organisations and individuals may 
apply.  There are no specifications as to the nationalit y of the persons or companies that can apply for  G/SCM/N/155/EEC/Add.8 
 Page 27 
 
 
  support.  Production companies holding rights to a film in Finland are eligible for support.  The 
recipient has to apply for the support according to the support guidelines (see point 4).   
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
 
 The amount granted in 2005 was MEUR 15,10.   
 The amount granted in 2006 was MEUR 17,43.   
 8. Duration of the subsidy and/or any other time limits attached to it
 
 
 There are no time limits attached to this programme.   
 9. The trade effects of the subsidy
 
 
 No effects on international trade.   
 E. T
ONNAGE TAXATION  
1. Title of the subsidy programme  
  Tonnage Taxation.   
 
2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  The purpose of the scheme is to ensure th e competitiveness of Finnish shipping companies 
and to discourage outflagging of Finnish ships.    4. Background and authority for the subsidy
 
 
 A company fulfilling the requirements (qualifyi ng company) may opt fo r tonnage taxation for 
a tonnage tax period of 10 years.  The income de rived from activities falling within the scope of the 
aid (qualifying activities) is not subject to income taxation.    
 Instead of income tax the company is charge d a low tonnage tax based on the net tonnage of 
its vessels on a yearly basis.  Tonnage taxation is carried out annually concurrently with income 
taxation.     Normal income tax is imposed in respect of  income derived from business activities of the 
company other than those subject to the tonnage tax (non-qualifying activities).  Expenses related to 
income derived from qualifying activities are not deductible in income taxation.   
  The tax subsidy only concerns non-distributed profits.  When the company distributes profits 
the "avoir fiscal" system is applied to ensure that  distributed profits are subject to taxation in 
accordance with the normal rate for co mpany taxation, i.e. 29 per cent.   
 
 Tonnage taxation is administered by th e Tax Office for Major Corporations.   
 G/SCM/N/155/EEC/Add.8 
Page 28  
 
   The legal basis for the scheme is the Tonnage Tax Act.  The tax regime has been approved by 
the commission as a state aid on 16 October 2002.  The Tonnage Tax Act entered into force on 
20 November 2002.    5. Form of the subsidy
 
 
 Tax relief.    6. To whom and how the subsidy is provided
 
 
 Upon application, the scheme would be applie d to resident limited companies, which are 
factually managed from Finland, which are engage d in the transport of cargo or passengers with 
vessels subject to tonnage tax (qualifying ships), which conduct their business from Finland, and 
which are liable to tax in Finland for their business.   There are special requirements concerning the 
minimum share of qualifying ships owned by the company itself and the maximum share of vessels 
chartered in with crew included.  
 
How the subsidy is provided:  see point 4.   
 7. The total amount or the annual amount budgeted for the subsidy
 
 
 In 2005, the amount was 0,00 MEUR.   
 In 2006, the amount was 0,00 MEUR.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 Unlimited.  Opting to pay tax on tonnage will be effective for a period of ten years.  On 
expiry of this period it will be possible to opt for a new period of ten years.    9. The trade effects of the subsidy
 
  No effects on international trade.   
 
F. S
UBSIDY TO PASSENGER VESSELS  
1. Title of the subsidy programme  
  Subsidy to passenger vessels.   
 
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
To safeguard the competitiveness of the Finnish passenger vessels in in ternational trade.   
 4. Background and authority for the subsidy
 
 
 Ministry of Transport and Communications Fi nland / Finnish Maritim e Administration.   
 National Board of Taxes.    G/SCM/N/155/EEC/Add.8 
 Page 29 
 
 
  5. Form of the subsidy  
  Grant.    6. To whom and how the subsidy is provided
 
 
 The Finnish ship-owner shall be supported by the state by 97 per cent to the tax on the marine work income of Finnish seafarers working on  board Finnish passenger vessels.  Law (1707/1 991).   
 7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The amount granted in 2005 was MEUR 45,36.    The amount granted in 2006 was MEUR 44,54.    
8. Duration of the subsidy and/or any other time limits attached to it
 
  Indefinite.    9. The trade effects of the subsidy
 
 
 No effects on international trade.   
 G. S
UBSIDY TO CARGO VESSELS  
1. Title of the subsidy programme  
 
 Act on the List of Merchant Vessels in International Trade.  Law (1707/1991).   
 2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
 
To safeguard the competitiveness of the Finnish  Cargo vessels in international trade.   
 4. Background and authority for the subsidy
 
 
 Ministry of Transport and Communications Fi nland / Finnish Maritim e Administration.   
 5. Form of the subsidy
 
  Grant.   
 
6. To whom and how the subsidy is provided
 
  The Finnish ship-owner shall be supported by the State by an amount corresponding to the tax 
withheld, the social security and other mandatory insurance contribution paid by the employer on the 
seaman's income.  Law (1707/1991).   G/SCM/N/155/EEC/Add.8 
Page 30  
 
  7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The amount granted in 2005 was MEUR 39,30.    The amount granted in 2006 was MEUR 38,04.   
 
8. Duration of the subsidy and/or any other time limits attached to it
 
 
Indefinite.   
 
9. The trade effects of the subsidy  
  No effects on international trade.   
 H. T
RAINING AID IN ÅLAND  
1. Title of the subsidy programme  
  Training aid in Åland.    2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
  Main objective is to increase the training of employees.   
 
4. Background and authority for the subsidy
 
 
The annual budget of the Government of Åland.   
 5. Form of the subsidy
 
 
 Grant.    6. To whom and how the subsidy is provided
 
 
 Granted to specific companies applying for a grant.   
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year)  
  The amount granted in 2005 was MEUR 0,23.   
 In 2006, it was EUR 0,22.   
 8. Duration of the subsidy and/or any other time limits attached to it
 
  2006.   
 
9. The trade effects of the subsidy
 
  No effects on international trade.   
__________