Foreign worker staying no longer than 6 months – you have the option to claim progressive tax treatment

Progressive taxation means that your tax treatment depends on your income – the more you earn, the more tax you pay. In the progressive scheme, all your income and deductions over the year are taken into consideration when your tax rate is calculated.

You are entitled claim tax treatment under the progressive scheme, and thus avoid being taxed by the “at source” system, if the length of your stay in Finland is max. 6 months and if your home country is

• an EU country, Norway, Iceland or Liechtenstein, or
• it is a country that has signed a tax treaty with Finland.

You must have a Finnish personal ID before you can submit your request for progressive treatment.

Read more about the tax cards issued to nonresidents. 

Complete 3 forms and make an appointment at a tax office

Submit the forms and enclosures to the Tax Administration

Finland will only collect taxes on the income you get from Finland. However, when the income subject to tax in your country is taken into consideration, the Finnish income tax rate is made higher. Examples of earned income taxable in your country include employment income, social benefits (unemployment allowance, students' grants) and pensions.

You may claim the following expenses as tax-deductible:

• commuting expenses, i.e. your daily travel between home and work
• expenses for the production of income
• pension insurance and unemployment insurance contributions
• interest expenses on a home loan

Please note that the tax authority in your country is probably not aware of all your taxable earned income, and deductions related to that income, at the point in time when you are completing the application form.

Examples of documents you can enclose with the application:

• a certificate proving the amount of your wage income
• if you receive unemployment relief, a document proving the amount you receive
• if you receive pension income, the decision on pension
• other documentation to prove how much income you receive

It may also be a good idea to enclose a tax certificate from your country that shows the results of the latest assessment of your taxes there.

Check your pre-completed tax return

If your income was subjected to progressive taxation in Finland, you will receive a pre-completed tax return by letter the following year. The amounts printed on it show your taxable income, deductions, and the final results of the Finnish tax assessment.

Check that all the information on the tax return is correct. If there is no need for changes, you do not have to do anything. You can make additions and corrections to your tax return information in MyTax.

The pre-completed tax return – making corrections in MyTax or on paper

Report income that you have received from your home country

For example, if you worked in Finland during the first months of the year and you had given the Finnish Tax Administration an estimated figure on your home-country income for the remainder of the year, enter the correct amount of income you have since received.

• If the estimated figure was too high, you may have paid too much Finnish tax. In this case, the Finnish Tax Administration will send you a new decision, which probably states that a tax refund will be paid back to you.
• On the other hand, if the estimated figure was too low, you may have paid too little Finnish tax. Then we will send you a new letter that requires you to pay us an additional amount – this is your back tax.

If you make corrections to your pre-completed tax return, we will send you a new tax decision in the autumn. You will see the final amount of taxes printed on it. If you must pay back taxes, we will also send you instructions for payment. In addition, the letter contains instructions on how a claim for adjustment can be made.

If you do not receive a pre-completed tax return in April, you must file a return at your own initiative in MyTax or on paper form 50A (Earned income and deductions).

• How to file information for your tax return on paper
• Use the Tax percentage calculator to estimate your tax rate

Example: If your annual gross income is around €25,000, the rate of tax is 15%. (In addition to income tax, pension and unemployment insurance contributions may also be withheld from your wages.)

If you did not yet ask for progressive taxation, and your employer withheld source tax on your pay, you can still fill in your tax return form to ask for progressive tax afterwards. 

Submit the information on paper form

• 6148e Request for progressive taxation of earned income
• 50A Earned income and deductions (complete this form if you have deductible expenses to claim)

Submit your 2022 tax return’s all forms to the Tax Administration by 23 May 2023.