Staying 6 months or less - pay tax at source
If you stay in Finland for no longer than 6 months, you are considered a non-resident taxpayer. This normally means that you must pay tax at source on the income you receive from Finnish sources.
If your employer is Finnish or has a permanent establishment in Finland, tax is withheld at source on income that you receive for the work you do in Finland. The tax at source is usually 35%. If your country of residence is an EU country, Norway, Iceland or Liechtenstein or a country that has a tax treaty with Finland, you can ask to be taxed progressively.
See further instructions if you will be working in construction.
Paying taxes
APPLY FOR A TAX-AT-SOURCE CARD
The tax card may include a deduction for tax at source: €510 per month or €17 per day. When you have a tax-at-source card, your employer can make the deduction from your income before the tax is withheld.
Give the original copy of the tax card to your employer. The tax at source is a final tax. You do not need to file a tax return to the Finnish Tax Administration.
Example: If you are paid €2,000 per month and you have no tax-at-source card, the tax is 35% or €700. If your employer has received a tax-at-source card from you with instructions for giving you a tax-at-source deduction, the tax is €521.50 (= (€2,000 – €510) × 35%). Remember that your gross taxable pay includes fringe benefits (such as free meals, room and board, etc.) as well as your wages.
PRESENT YOUR A1 CERTIFICATE
You can get an A1 certificate from your country if you are coming from another EU or EEA state or Switzerland. A1 is a certificate on social insurance coverage issued by the authorities in your home country.
If you have an A1 certificate, you do not need to pay any insurance contributions.
If you do not have an A1 certificate:
- Your employer withholds mandatory pension insurance and unemployment insurance contributions from your pay and remits them to insurance companies.
- If you are covered by the Finnish health insurance scheme based on your work, your employer will also withhold a health insurance contribution from your pay (health care contribution and daily allowance contribution). Read more about health insurance contributions for individuals coming to work in Finland.
For more information, see
- Finnish Centre for Pensions (ETK)
- Unemployment Insurance Fund (TVR)
- your pension insurance company.
REPORT YOUR FINNISH-SOURCED INCOME IN YOUR HOME COUNTRY
Your home country usually has the right to tax the income you receive from other countries. Remember to report the income that you receive from Finland to your home country’s tax authorities.
Your employer gives you a pay slip that shows the amounts paid to you and the taxes withheld on them at source. You may need to show the pay slip to the tax authorities of your home country. If your country imposes a tax on foreign-sourced income, it will also remove any double taxation on it.