Taxes

In Finland, you pay taxes on your salary and other income (such as business income, payment for labour or service, pensions, capital income and various social benefits). With tax money, the state and municipalities pay for example health care, education, early childhood education and care and defense. Your tax amount depends on how much income you receive. If you come from abroad to work in Finland, your taxation is affected by how long you will stay in Finland and whether your employer is a Finnish or foreign company. When you arrive to Finland to work you need a tax card and/or an individual tax number. To apply for the card and the number, you need a Finnish personal identity code.

In Finland, taxation of earned income is progressive. This means that you pay a larger share of tax on a larger salary than on a smaller salary. The tax rate indicates how much tax you pay on your income. It is calculated separately for each person in Finland. Your spouse’s income does not affect your tax percentage. You can estimate your own tax percentage using the Tax Administration’s calculator.

If you receive a salary, the employer withholds the amount of tax directly from your salary and passes it on to the tax authorities. For that purpose, the employer must have your tax card. A tax card is a document that shows your tax rate. After each year, the Tax Administration calculates whether you have paid a sufficient amount of tax on your income. If you have paid too much tax, you will receive a tax refund. If you have paid
too little tax, you will have to pay the missing amount in back taxes. Please notice that you must pay the missing amount in back taxes although you are no longer staying in Finland.

If you reside in Finland for more than six months, you must usually pay taxes on all your income in Finland. This also applies to the income you receive from abroad. Usually, you must also pay the obligatory insurance payments in Finland. If you have a Finnish employer, the tax rate of your salary is determined by the income for the whole year. The higher your wage income, the higher the tax rate. You need a Finnish personal identity
code and a tax card.

When you move away from Finland, you must submit a notification of change of address to the Digital and Population Data Services Agency within a week of the move. It is also advisable to notify the Tax Administration of the move separately.
Read more about taxes:
www.vero.fi/en/individuals/tax-cards-and-tax-returns/arriving_in_finland/