Tax Question

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dreamer
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Tax Question

Post by dreamer » Wed Oct 22, 2003 12:53 pm

I need some advice on this: next month I will exceed my yearly income limit. Will I get taxed by the higher percentage in November and December? In that case what can I do to avoid it - can I still change my income statement?

thanks for any inputs, I still haven't got the hang of these tax issues :oops:



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Hank W.
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Post by Hank W. » Wed Oct 22, 2003 12:58 pm

Depends on actually what it says on your tax sheet you gave to your employer. As there are two kinds of limits. Better call the tax office and ask. 020 466 020 => have your latest pay sheet ready as they'll ask a lot of stupid questions from there, as in how much has been deducted and how much you have earned.
Cheers, Hank W.
sitting here like a lemon looking for a gin.


Handsome
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Post by Handsome » Wed Oct 22, 2003 1:07 pm

You could get a new tax form for the last few months.

Stu


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Mikie
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Post by Mikie » Wed Oct 22, 2003 2:55 pm

Ok, now I'm a bit curious.... You have a yearly income LIMIT? Can anybody give me an idea what that means, because it can't possibly be a restriction on how much money you can make.


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Post by Caroline » Wed Oct 22, 2003 3:05 pm

Mikie wrote:Ok, now I'm a bit curious.... You have a yearly income LIMIT? Can anybody give me an idea what that means, because it can't possibly be a restriction on how much money you can make.


I think he means the yearly income limit on how much you can earn under the tax bracket he is currently in. By exceeding the income limit, your income tax goes up.
Former expat in Finland, now living in New Hampshire USA.

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Hank W.
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Post by Hank W. » Wed Oct 22, 2003 3:08 pm

Well, yes its a restriction :mrgreen: You get taxed at a flat rate municipal tax and then get taxed at a progressive rate for the state tax. Say you make 2500/month. The tax office calculates a % that the employer will need to deduct from the salary each month, in this case say 25%. (if you don't submit one they dock 60% automatically) So your "income limit" is 30.000. Usually the tax card says "25% untill 30.000 and any exceeding 44%.
Cheers, Hank W.
sitting here like a lemon looking for a gin.


dreamer
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Post by dreamer » Wed Oct 22, 2003 3:28 pm

Hank W. wrote:Well, yes its a restriction :mrgreen: You get taxed at a flat rate municipal tax and then get taxed at a progressive rate for the state tax. Say you make 2500/month. The tax office calculates a % that the employer will need to deduct from the salary each month, in this case say 25%. (if you don't submit one they dock 60% automatically) So your "income limit" is 30.000. Usually the tax card says "25% untill 30.000 and any exceeding 44%.
exactly!

Thanks for all the answers :) I will have to call that number tomorrow since I don't have my payslip with me now (hope I'll be able to manage the conversation, the tax jargon is alien to me (even more then the Finnish language :wink: ) clueless when it comes to Cumulative Tax Withholding (guess that's what I have), Marginal taxable income...)

About the type of limit I have, it's a period income limit (as in cumulative tax withholding?). I'm still not sure how this period limit works, how exacly they calculate it.


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Hank W.
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Post by Hank W. » Wed Oct 22, 2003 3:58 pm

The number is the one you can also get a new 'verokortti' they'll recalculate and send you one. It is countrywide (local call rate) so its going to be a tax office somewhere who first picks up the phone, so don't wonder if you get mail from Kuusamo or Mäntsälä.
Cheers, Hank W.
sitting here like a lemon looking for a gin.


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