Leased employee staying no more than 6 months – here’s how you can take care of your taxes

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. The rate of the tax is 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.

Paying taxes

1

APPLY FOR A FINNISH PERSONAL ID

Fill in Form 6150e

You must visit a tax office to sign the form after you have filled it in. It is required that you visit the tax office in person.

2

REQUEST A CALCULATION OF PREPAYMENTS OR REQUEST A TAX CARD

Fill in Form 5057e

Fill in the form and take it to the tax office with you.

3

MAKE AN APPOINTMENT AT A TAX OFFICE

You must visit a tax office so you can be identified and can be given a personal ID.

Do this by the end of the calendar month after the month when you started your work. If you do not submit a request for tax prepayments on time, the Tax Administration may impose a tax increase.

Please take the following documentation with you:

  • the forms you have filled in
  • a valid passport or official proof of identity (not a driver’s licence)
  • a valid residence permit or visa if necessary
  • photocopy of your work order or work contract
  • a written account given by your employer regarding your work in Finland, if the following information is not included in your work order or work contract:
    • who your employer is
    • who the party in Finland who ordered the work is, i.e. who is the service recipient
    • your full name and date of birth
    • information on the start and end dates of your work in Finland
    • information on the place where work is done and a short description of the work you do
  • a photocopy of the A1 certificate, if you have one (A1 is a certificate issued by the authorities in your home country, affirming that you are covered by the social security system of that country). You can get an A1 certificate from your country if you are coming from another EU or EEA state or Switzerland.

Make an appointment in MyTax

If you cannot log in to MyTax, make an appointment by calling 029 512 000.

If you do not have an A1 certificate:

  • In addition to the tax that must be withheld, your employer also withholds pension 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.

More information on insurance is available from

Tax offices where you can get a Finnish personal ID

4

PAY THE TAXES

Depending on whether your employer is treated as having a permanent establishment in Finland and entered in the Finnish register of employers, the tax office will issue you either a tax-at-source card or instructions on how to make prepayments of income tax.

To see whether your employer is on the register of employers, you can make the following check: Enter the employer’s company name in the search field of the Finnish Business Information System website. You can probably find out from your employer whether or not the employer's business operations give rise to a permanent establishment in Finland.

If you do not prepay the amounts as instructed, back tax will be imposed on you, and you may also have to pay interest on it.

You must take care of your prepayments yourself if your employer is not registered and not treated as having a permanent establishment.

In this case, you should make the prepayments independently during the year when you do your work.

You may ask for progressive income taxation of your earned income instead of taxation at source. It means that your payments of tax depend on a rate that will grow if you receive an increase in income – and shrink if your income goes down. All your income and deductions over the year are taken into consideration in the progressive scheme when your rate of tax is calculated.

If the foreign leasing agent who pays you wages is on the Finnish register of employers, or has a permanent establishment in Finland, you will need a tax-at-source card.

In this case, you pay 35% of your income as tax at source. Your employer applies a ‘tax at source deduction’ on your pay before calculating the tax to be withheld at source. This deduction amounts to €510 per month or €17 per day. The employer withholds the tax on your wages.

The tax at source is a final tax. You do not need to file a tax return to the Finnish Tax Administration.

You may ask for progressive income taxation of your earned income instead of taxation at source. It means that your payments of tax depend on a rate that will grow if you receive an increase in income – and shrink if your income goes down. All your income and deductions over the year are taken into consideration in the progressive scheme when your rate of tax is calculated.