Turku Tax Office
Lemminkäisenkatu 14-18 B
P.O. Box 921 , FI-20101 Turku
Tel. 020 612 000
Open Mon-Fri 9.00-16.15
Category of tax liability in Finland depends on the durations of work in Finland and whether or not the employer has a registered status in Finland. If you are paid for the work you do in Finland, you usually have to pay income tax in Finland. Your tax percentage depends on how long you stay – for six months or for longer.
Finland has tax treaties with more than 70 countries. International tax treaties are made to avoid double taxation in situations where a person receives income from another country than his/her home country. In general, tax treaties usually provide that wages should be taxed in the country where the work is done. Some of the tax treaties include special exemptions for students. To qualify for a tax-treaty exemption, it is additionally required that you (immediately before your arrival to Finland) lived in the country that has made the tax treaty with Finland. Information about these treaties is available at the tax office and the website of Finnish tax administration www.tax.fi.
Persons Staying in Finland for a Maximum of 6 Months
Finnish employers collect a final 35-percent tax at source on the pay of a foreign employee who only stays in the country for six months or less. The tax rate is the same for all levels of income, including small incomes.
Besides tax, your employer will also withhold social security payments from your pay (amounting to approximately 7% all payments combined), unless you have the certificate E 101 of a posted employee. If you are regarded as a posted employee, your social security insurance has been taken care of in the country where you come from. Because the 35-percent tax is a final tax, you are normally not expected to submit an income tax return in Finland.
During the first couple of days in Finland, please visit the local tax office – the tax office will issue you a tax card (fill out the application form no 6201e, Application for tax-at-source card) and a personal identity code. Give the tax card to your employer. After you have finished you employment, your employer will issue you a certificate covering the full period of your employment during the relevant calendar year(s), showing your income and the tax withheld. We recommend that you keep the certificate. You may have to present it to the tax authorities of your country of residence.
If you are employed by a company from another country than Finland, and that employer is paying you salary, you will not have to pay tax on your income in Finland. You will only have to submit an income tax return in your home country, and pay the appropriate taxes in your home country.
Persons Staying in Finland Longer than 6 Months
If you stay in Finland for longer than six months, you will have to pay tax on your earned income in Finland. It does not make a difference if your employer is Finnish or foreign or if you receive a part of your wages from a Finnish employer and another part from a foreign employer. There are exemptions to this rule, when certain requirements are fulfilled. The tax rate in Finland is progressive.
Besides tax, your employer will also withhold social security payments from your pay (amounting to approximately 7 % all payments combined), unless you have the certificate E 101 of a posted employee. If you are regarded as a posted employee, your social security insurance has been taken care of in your home country. In addition, you will be expected to submit a Finnish income tax return.
During the first couple of days in Finland, please visit the local tax office. Apply for a tax card by filling out the application form no 5042a Application for tax card for foreigners and persons who have been living abroad. Give the tax card (Verokortti/Skattekort) to your employer. The employer will tax your income according to the card. Hand in your new tax card to your employer's payroll office without delay. They may need it two weeks in advance of your next payday. The employer will apply the percentage rate printed on the tax card to withhold an amount from your wages. Please note that if you fail to deliver a tax card to the employer, the employer's payroll office will be under the legal obligation to withhold 60% from your pay. If your employment contract is terminated, your employer will return the tax card back to you.
After every calendar year you have worked in Finland, you have to submit an income tax return to the Tax Administration. You will receive a Pre-Completed Tax Return form to your home address. You do not have to declare income you received before moving to Finland nor income you receive after moving away from the country. Forms and instructions are available in English. The tax office will assess your taxes and send you a statement showing the final amounts of taxes imposed. This statement will show if you will be receiving a refund or alternatively, if you will have to pay more tax because of insufficient withholding. Instructions for appeal will also be included in the statement.
Grants paid at the universities normally count as taxable income for the grant recipient, provided that the total annual amount exceeds the annual amount of the (Finnish) State Grant for Artists (year 2014 this amount was 19 797, 24 € ).
Please consult the tax administration concerning any tax consequences possibly arising from the payment of the grant.
Information on international taxation is also available by phone at the following enquiry number +358 20 697 024 . This service is available in English Mon-Fri at 9.00 – 16.15 (GMT +2 h).