Taxation
When you come to Finland to work, your tax treatment depends on the length of your stay. The treatment also depends on the country of the employer, i.e. whether you work for a Finnish employer or for a foreign one. In Finland, you usually pay taxes based on your income. The more you earn within a year, the higher your tax percentage. This is referred to as progressive tax treatment.
You can get your tax card from the local tax office in Ivalo. The Tax Administration may also give you a Finnish personal identity code if you need it for a tax-related reason, such as working in Finland. In order to get a personal ID you will have to visit a tax office in person.
Comprehensive information about taxation in Finland can be found at Finnish Tax Administration's website
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.
Local tax office
Phone service for Finnish Tax Administration
International tax matters, +358 29 497 024