Expatriate tax ebook - Finland
Facts and figures
Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation
Pre arrival procedures
All people residing in Finland must be registered in the Population Information System. Registered people receive a personal identity number, temporary or permanent, which is required when working in Finland and dealing with authorities. Persons coming from an EU state can be registered by showing their passport and a valid work agreement. They have to apply for a residence permit within 3 months from their arrival. Persons from non- EU countries have to apply for a residence permit prior to registration. A residence permit is not required if you are a citizen of another Nordic country. A person can apply for a tax-at-source card from the local tax office after receiving the personal identity number.
Employment visas
Persons arriving from a non EU and EEA country are required to have a residence permit in order to be allowed to work in Finland. The application for a residence permit can be filled by the employee or the employer. The application can be filed abroad at a local Finnish consulate prior to the arrival. In Finland, the application is filed at the employment office or at a local police station.
Tax year
The start and end date of the tax year in your country. The Finnish tax year for individual taxpayers runs from 1 January to 31 December.
Tax returns and compliance
Non-residents generally do not file a tax return because the final tax is withheld at source from Finnish-source income. In the case of income other than wages, salaries, pensions, dividends, interest or royalty, a tax return must be filed in accordance with the general principles. Tax returns for residents are pre-completed, pre-populated and distributed to individual tax payers in April. Spouses file separate tax returns; joint filing or income splitting is not possible.
| Taxable income | Tax on the limit | Tax rate for amounts exceeding lower limit |
|---|---|---|
| 12,600 20 800 | 8 | 8,5 % |
| 20 800 34 000 | 705 | 19,5 % |
| 34 000 62 000 | 3 213 | 23,5 % |
| 62 000 - | 9 793 | 31,5 % |
In addition, the municipal income tax is about 16 20 %. The church tax is 1 %.
Sample income tax calculation
Information about Finland:
Last updated 12 May 2008
This information has been provided by Grant Thornton Finland OY, a member firm within Grant Thornton International Ltd and is for informational purposes only. Neither Grant Thornton Finland OY nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
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