ÅA Survival Guide 2015-2016

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Emp l oymen t I s s ue s
Finland. Information about these treaties is
available at the tax office and the website of
Finnish tax administration .
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. You need a Finnish
personal identity code (see chapter 3.2). The
tax office will issue you a tax-at-source card (fill
out the application form no. 6201e, Application
for tax-at-source card) and instructions for
requesting the personal identity code. Give the
tax-at-source 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 your 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. See for
more information. 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. You need a Finnish
personal identity code. Apply for a tax card (fill
out the application form no. 5042a, Application
for tax card for foreigners and persons who
have been living abroad). Give the tax card
(skattekort/verokortti ) to your employer. The
employer will tax your income according to the
card.
After every calendar year you have worked
in Finland, you have to submit an income tax
return to the Tax Administration. (For the 2015
income year, the deadline is May 2016). 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.