Taxation and foregin employer

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shrecher
Posts: 221
Joined: Sat Sep 15, 2007 8:57 am

Taxation and foregin employer

Post by shrecher » Mon Mar 17, 2008 2:21 pm

Can someone clarify one issue.

What will happen with my taxation in Finland if I would go to work abroad at 2nd half of 2008? For example, will work from 09.2008 to 06.2009. This is continuous period exceeds 6 months. However, during 2008 it will be less than 6 months and I'll be staying here during 2008 more than 6 mo. Will be my foreign salary be taxed in Finland during that period of 2008? Assuming employer is non Finnish company and the country is outside of EU, family will follow me abroad.



Taxation and foregin employer

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Hank W.
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Re: Taxation and foregin employer

Post by Hank W. » Mon Mar 17, 2008 2:45 pm

http://www.vero.fi => julkaisut ja lomakkeet
237 Ulkomaantyöskentelyn verotus - tiedote työntekijälle (5 sivua, 443 kt)
Says there, last page sideways the 183 days (6 months rule) depends on the country you will be working in, if its the calendar year or consecutive.
What you need to do is "move out" of the country (make it to the maistraatti officially) (its a different thing to pay for the post office to forward your mails). Now if the move is temporary or permanent (as in domicile), if you are planning to return after the stint, then you don't necessarily want to "drop off" as then you need to battle all the KELA and such. So you need to in the know how the "system works". They "will know" so you cannot say you are living and other place claim you are not living as you are "in the computer" one way only.
Cheers, Hank W.
sitting here like a lemon looking for a gin.

shrecher
Posts: 221
Joined: Sat Sep 15, 2007 8:57 am

Re: Taxation and foregin employer

Post by shrecher » Mon Mar 17, 2008 3:13 pm

Thanks.

I wonder how should I interpreate the selected fragment:
"Eli oleskeletko työskentelyvaltiossa yli 183 päivänä kalenterivuoden aikana tai onko työnantaja työskentelyvaltiosta"

Does it mean "local foreign company" or what?

shrecher
Posts: 221
Joined: Sat Sep 15, 2007 8:57 am

Re: Taxation and foregin employer

Post by shrecher » Mon Mar 17, 2008 5:43 pm

quick update, if someone would search for the similar material.

1. 6 months rule always applies for foreign company employer: if employer is a foreign company and you work at that company during continuous 6 months period. This 6 m period not necessary should be at the same calendar year.

2. KELA covers during 1 year even you are relocated to another country unless you have insurance in another country.

nsdh
Posts: 91
Joined: Mon Mar 31, 2008 12:15 pm

Re: Taxation and foregin employer

Post by nsdh » Sat Apr 05, 2008 12:54 pm

Hi,

I came to Finland on Jan26th 2008 and returing back to Inida on April20th, nearly 3 months. Then i have to come back again on June10th and will be back November last 2008. Do i have to pay tax if i do so?

Please reply me, I have to decide the schedule according to that. :roll:

THank U :)

Prasad

shrecher
Posts: 221
Joined: Sat Sep 15, 2007 8:57 am

Re: Taxation and foregin employer

Post by shrecher » Sat Apr 05, 2008 2:08 pm

nsdh wrote:Hi,

I came to Finland on Jan26th 2008 and returing back to Inida on April20th, nearly 3 months. Then i have to come back again on June10th and will be back November last 2008. Do i have to pay tax if i do so?

Please reply me, I have to decide the schedule according to that. :roll:

THank U :)

Prasad
read this page:
http://vero.fi/nc/printarticle.asp?arti ... 88,493,515

quick asnwer
if (your_stay_in_fin > 183)
pay_tax(your_stay_in_fin);

nsdh
Posts: 91
Joined: Mon Mar 31, 2008 12:15 pm

Re: Taxation and foregin employer

Post by nsdh » Sat Apr 05, 2008 2:54 pm

I am not staying continoulsly for 180 days. Still do i have to pay? That is my confusion... :(

shrecher
Posts: 221
Joined: Sat Sep 15, 2007 8:57 am

Re: Taxation and foregin employer

Post by shrecher » Sat Apr 05, 2008 3:52 pm

nsdh wrote:I am not staying continoulsly for 180 days. Still do i have to pay? That is my confusion... :(
I think they mind the 183 per calendar year: if you stay more than 183 days in Finland per caleandar year you must pay the tax regardless of source (local/foreign) of the income for period while you are staying in Finland.

However, it is better to ask at vero.fi than on the forum. Vero.fi has section for questions and they replay promptly (~3 days).


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