Hello guys!
Sorry, I didn;t find the answer to my question at Vero-piste-fi. May be cuz it's not there. My be cuz I didn't understand them clear enough.
Anyway, is there any legal way to dodge being taxed on my salary in Finland? I'm on Finnish payroll and am a registered resident in Finland but I travel a lot. I mean A lot. I spend in Finland only 1/3 of the time, at best. I know this does make different when it comes to taxes on foreign bought car but what about income tax?
And no, I don't have much ethical problems with that question of mine anyway: Medical service? I get all my stuff done in another country, where I pay for it. I have neither parents getting retirement from Finland nor children using Finnish kindergartens, schools (or whatever other stuff that comes back to you from the government). Nor am I a student using discounts on all kinds of stuff. And yeh, as I said, I barely live here at all...
Anyway, what if I'm still on Finnish payroll but actually don't live here? At all. I mean, get "unregistered" as a resident and all that stuff. I guess, THEN I would not be taxed in Finland? Byt then taxed i the country where I'll then live?
Thank you all in advance.
Not paying Income Tax - possible?
Re: Not paying Income Tax - possible?
Read the whole of section 6
http://www.vero.fi/nc/doc/download.asp?id=4151;1035296
2.2.1
Non resident individuals and corporate bodies are liable to tax on their income derived
from Finland (limited tax liability). Interest derived from Finnish bonds, debentures and
other mass instruments of debt, or from loans from abroad which are not considered as
capital investment assimilated to the debtor’s own capital, as well as interest from deposits
in banks or other fi nancial institutions and from foreign trade credit accounts are exempt
from income tax on the basis of internal legislation
2.2.2. Residents and non-residents
An individual is deemed to be resident in Finland if he has his main abode in Finland or
if he stays in Finland for a continuous period of more than six months. This rule implies
that a person can be regarded as resident in Finland for part of the year and non-resident
for the rest of the year. The stay in Finland may be regarded as continuous in spite of a
temporary absence from the country.
A resident national who has left Finland (and surrendered his place of main abode
here, if any) is, however, considered to be resident in Finland even if he is not physically
present in Finland for a continuous period of more than six months within any period of
time until three years have elapsed from the end of the year in which he left the country,
unless he can produce evidence that he has not maintained substantial ties with Finland
during the tax year in question (the “three year rule”). Unless there is evidence to the
contrary, a Finnish national is not deemed to be resident in Finland after the end of the
three-year period.
In addition, a Finnish national who takes up position at a Finnish diplomatic mission,
consular post or special mission and who is not resident in the foreign country in question at
the time when he commences the period of service, is deemed to be resident in Finland.
Non-residents employed on board Finnish ships or aircraft are liable to tax only on
wage income derived from work done on board and work done temporarily elsewhere for
the ship or aircraft by the employer’s order, pension income which is directly or indirectly
based on such wage income, as well as income derived from Finland. Foreign ships and
aircraft leased with only a minor crew or without any crew (bare boat leasing) by a Finnish
employer are considered to be Finnish for tax purposes.
The Income Tax Act does not contain provisions defi ning the meaning of “residence”
with regard to corporate bodies but according to present practice a corporate body is
regarded as resident in Finland if it is registered (incorporated) here or otherwise
established under Finnish law. A general or limited partnership registered in Finland or
otherwise established under Finnish commercial law is, following the same principle as
applied in the case of corporate bodies, regarded as resident. The Income Tax Act contains
express rules only on the residence of undistributed estates of deceased persons which are
regarded as residents in Finland if the deceased was resident here at the time of death.
A person who is resident in Finland for only a part of the year is taxed as a resident on
income attributable to that part of the year and as a non resident on income attributable
to the rest of the year.
.
http://www.vero.fi/nc/doc/download.asp?id=4151;1035296
2.2.1
Non resident individuals and corporate bodies are liable to tax on their income derived
from Finland (limited tax liability). Interest derived from Finnish bonds, debentures and
other mass instruments of debt, or from loans from abroad which are not considered as
capital investment assimilated to the debtor’s own capital, as well as interest from deposits
in banks or other fi nancial institutions and from foreign trade credit accounts are exempt
from income tax on the basis of internal legislation
2.2.2. Residents and non-residents
An individual is deemed to be resident in Finland if he has his main abode in Finland or
if he stays in Finland for a continuous period of more than six months. This rule implies
that a person can be regarded as resident in Finland for part of the year and non-resident
for the rest of the year. The stay in Finland may be regarded as continuous in spite of a
temporary absence from the country.
A resident national who has left Finland (and surrendered his place of main abode
here, if any) is, however, considered to be resident in Finland even if he is not physically
present in Finland for a continuous period of more than six months within any period of
time until three years have elapsed from the end of the year in which he left the country,
unless he can produce evidence that he has not maintained substantial ties with Finland
during the tax year in question (the “three year rule”). Unless there is evidence to the
contrary, a Finnish national is not deemed to be resident in Finland after the end of the
three-year period.
In addition, a Finnish national who takes up position at a Finnish diplomatic mission,
consular post or special mission and who is not resident in the foreign country in question at
the time when he commences the period of service, is deemed to be resident in Finland.
Non-residents employed on board Finnish ships or aircraft are liable to tax only on
wage income derived from work done on board and work done temporarily elsewhere for
the ship or aircraft by the employer’s order, pension income which is directly or indirectly
based on such wage income, as well as income derived from Finland. Foreign ships and
aircraft leased with only a minor crew or without any crew (bare boat leasing) by a Finnish
employer are considered to be Finnish for tax purposes.
The Income Tax Act does not contain provisions defi ning the meaning of “residence”
with regard to corporate bodies but according to present practice a corporate body is
regarded as resident in Finland if it is registered (incorporated) here or otherwise
established under Finnish law. A general or limited partnership registered in Finland or
otherwise established under Finnish commercial law is, following the same principle as
applied in the case of corporate bodies, regarded as resident. The Income Tax Act contains
express rules only on the residence of undistributed estates of deceased persons which are
regarded as residents in Finland if the deceased was resident here at the time of death.
A person who is resident in Finland for only a part of the year is taxed as a resident on
income attributable to that part of the year and as a non resident on income attributable
to the rest of the year.
.
Re: Not paying Income Tax - possible?
OP: Very very difficult to prove these kind of scenarios..where you are out of country for a long time..
There are Lot of people that I know who are out of country on a constant basis and have no way of claiming something like what you said..
Both Finns as well as Foreigners working here with permits..
There are Lot of people that I know who are out of country on a constant basis and have no way of claiming something like what you said..
Both Finns as well as Foreigners working here with permits..
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chickensexer
- Posts: 1248
- Joined: Sun Jan 15, 2006 8:50 pm
Re: Not paying Income Tax - possible?
Ok but wht do you mean by "working HERE"? If I'll beperforming my work duties in another country, they are not related to Finland, not living in Finland, not being registered in Finland nd likely not even visiting Finland - the only connection with Finland would be my salary coming through Finnish branch of our financial department (or whatever those things are called; only because my company is not juridically present in the country of my residence) - what would Finland have to do with taxing me on that? 
Re: Not paying Income Tax - possible?
Basically, the Finnish Company is paying for Work being Performed for them from Finland..Unless you want to work for their subsidiary somewhere where the local laws hold there..
Now, according to that, they tax at source..and so if you get paid for by the company From the Finnish Branch/Office, then it is taxed at source and is subject to Finnish laws regardless of where you perform the work at..
Now, according to that, they tax at source..and so if you get paid for by the company From the Finnish Branch/Office, then it is taxed at source and is subject to Finnish laws regardless of where you perform the work at..
Re: Not paying Income Tax - possible?
Some of the above is not true since you can be classed non-taxable in finland when working for a finnish company.
I work for a finnish company and the last 3 years i have been working mostly abroad (us, sweden, brazil, germany & UK). For 2008 i am taxable in the UK. For the UK this happens if you work more then 80 days in the country. Since you cant be taxed twice for 2008 i will be classed as not having to pay tax in finland. My company has a seperate department delaing with this and E&Y are doing my tax forms in the UK and Finland. Basically what will happen is that i paid tax in finland every month. E&Y will file that i am not taxable in finland and in December i get every cent i paid in taxes back. I then have to give this amount to my company who will take care of the payment of the taxes in the UK. For me personally it doesnt matter where i pay it because i will always pay what i would have payed in finland. My company can either make a profit or a loss (most of the time a loss due to extra costs) which is then charged to the project i work for.
All in all you can be classed non taxable in finland BUT you have to pay taxes somewhere
I work for a finnish company and the last 3 years i have been working mostly abroad (us, sweden, brazil, germany & UK). For 2008 i am taxable in the UK. For the UK this happens if you work more then 80 days in the country. Since you cant be taxed twice for 2008 i will be classed as not having to pay tax in finland. My company has a seperate department delaing with this and E&Y are doing my tax forms in the UK and Finland. Basically what will happen is that i paid tax in finland every month. E&Y will file that i am not taxable in finland and in December i get every cent i paid in taxes back. I then have to give this amount to my company who will take care of the payment of the taxes in the UK. For me personally it doesnt matter where i pay it because i will always pay what i would have payed in finland. My company can either make a profit or a loss (most of the time a loss due to extra costs) which is then charged to the project i work for.
All in all you can be classed non taxable in finland BUT you have to pay taxes somewhere
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chickensexer
- Posts: 1248
- Joined: Sun Jan 15, 2006 8:50 pm
Re: Not paying Income Tax - possible?
Thank you All.
Yes, I'm totally fine with being taxed in the country where I'm planning on living. Especially because I believe I would have a couple of hundred euros more "in hand" per month with that other country's tax system... In fact it would've been much easier to just be paid from within that country, too, not having Finland as part of the picture at all. But the problem is that my company isn't present there. :S
Anyway, I'm sorry, I didn't quite understand how come it doesn't make difference for you where you are taxed, UK or Finland... In my case part of the reason for that messy arrangement would be to get MORE money in hand due to slightly lower taxing in that other country. Would that be possible? From you example I got the idea that it's the company who gets or loses the difference but I hope it doesn't have to be that way!
Yes, I'm totally fine with being taxed in the country where I'm planning on living. Especially because I believe I would have a couple of hundred euros more "in hand" per month with that other country's tax system... In fact it would've been much easier to just be paid from within that country, too, not having Finland as part of the picture at all. But the problem is that my company isn't present there. :S
Anyway, I'm sorry, I didn't quite understand how come it doesn't make difference for you where you are taxed, UK or Finland... In my case part of the reason for that messy arrangement would be to get MORE money in hand due to slightly lower taxing in that other country. Would that be possible? From you example I got the idea that it's the company who gets or loses the difference but I hope it doesn't have to be that way!
Re: Not paying Income Tax - possible?
Can you change your "workign" country to Sweden? Mebbe the ave. salary they pay there for your company is more there..
In Quin's case, he is partially taxable for those 80 days as Penny's post suggests. But In Finland, it happens to be 180 days for you to be present continuously outside to be qualified as a non-resident ( After living out of the system for 2+ yrs)
and dealing with partial taxation is really another nightmare that I would rather settle for paying higher taxes..as you need Internationally certified accountants to calculate which part is taxable where..and if the OP has that luxury ( Which might be possible is they approach their payroll and find out what to do)..
In Quin's case, he is partially taxable for those 80 days as Penny's post suggests. But In Finland, it happens to be 180 days for you to be present continuously outside to be qualified as a non-resident ( After living out of the system for 2+ yrs)
and dealing with partial taxation is really another nightmare that I would rather settle for paying higher taxes..as you need Internationally certified accountants to calculate which part is taxable where..and if the OP has that luxury ( Which might be possible is they approach their payroll and find out what to do)..
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chickensexer
- Posts: 1248
- Joined: Sun Jan 15, 2006 8:50 pm
Re: Not paying Income Tax - possible?
I don't think I can change my "working country" to anything paying HIGHER than now. I mean the company would only be willing to allow me any changes if it will cost them the same or less... It's me who wants the swap, the company is happy to on the things the old way.
And no, I don't want partial taxation, I would want to be taxed completely in that one other country cuz likely I wouldn't show up in Finland at all anymore and won't have any other "material" connections to it other than being paid/taxed through our Finnish branch.
And no, I don't want partial taxation, I would want to be taxed completely in that one other country cuz likely I wouldn't show up in Finland at all anymore and won't have any other "material" connections to it other than being paid/taxed through our Finnish branch.