Taxation

Services including health care, education, security and the services for children and the elderly are of high standard. Therefore, the level of taxation in our country is quite high, as welfare services are maintained by tax revenues. The tax is paid in our country progressively which means that the larger your salary the higher rate your tax percentage.

Foreign people who work in Finland will generally pay tax of their wages in Finland and a Finnish tax card is required. Usually wages are taxable even if the stay is temporary. The taxation principles for foreign employees vary according to the duration of your stay.

If you are residing and working in Finland on a temporary basis and no more than for six months, you have a limited tax liability; your wages will be subject to tax at source with a rate of 35 % of the pay and it includes benefits. If you have limited liability to pay tax you are required to have a tax-at-source-card from the tax office. It is highly recommended to request for a Finnish personal identity number. It can be obtained from the tax office, the local register office or the Social Insurance Institution.

Instead, if you are working in Finland for longer than six months, you are considered to be a tax resident. Your income is consequently taxed under the same rules as the Finnish residents and on the basis of progressive taxation. You are required to request for the tax card document issued by the tax authority. You also must file an income tax return to Finnish tax authorities. A Finnish personal identity number is required. In case an employee comes to Finland for at least a year, the ID number must be applied for at the Local Register Office.

There are also some special tax regulations between Finland and certain countries. Therefore, e.g. some teachers and researches from certain countries may be taxed in a different way or be exempt from Finnish income tax. It is always necessary to contact the local Tax Office to revise the precise information and ensure the right taxation. It is highly recommended to contact the Tax Office immediately after your arrival in Finland and before starting your work.

Scholarships and other grants which are obtained for studies, scientific research or artistic activities generally under certain conditions are not taxable income. However, in some cases the taxability depends on the paid amount and granter of the scholarship or grant. If the grant is admitted by the grant receiver’s employer, it is generally considered to be a compensation of the work and is seen as a paid salary. If there is anything unclear concerning grants and scholarships, it is advisable to contact the tax office to clarify your tax status.

If you wish to have personal customer service in matters concerning taxation in Finland, please do not hesitate to contact the Tax Office before your arrival to Finland. You can also contact the In To Finland service point which is a shared info point of The Social Insurance Institution of Finland (Kela) and the Tax Administration and is particularly intended to serve foreign workers in Finland.

The Local Tax Office in Rovaniemi is located in Hallituskatu 3 A.