Making sense of your tax treatment can be a hideous undertaking, but the effort usually pays off. Therefore I urge you to read on.

Tax-at-source card

If you arrive in Finland to work, tax is withheld at source. In that case it is usually beneficial to 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. The faster you get your tax-at-source card, the earlier you will benefit from the deduction!

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%).

Progressive tax treatment

If you are not scared by a bit of additional bureaucracy, it is usually beneficial to claim progressive tax treatment instead of being taxed at source. You can do that if your country of residence is an EU country, Norway, Iceland or Liechtenstein or a country that has a tax treaty with Finland. Progressive taxation means that 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. If you are taxed progressively, you must file a tax return.

More information

Ivalo Tax Office

Piiskuntie 5, 99800 Ivalo

National switchboard +358 29 512 000

Opening hours: Tues at 9:00-12:00

Appointments

Please note, that you can beat the ques at the local tax office by booking a group appointment on-line!

Remember to bring your passport and employment contract!