home office employee in Finland

libre · Post by **libre** » Tue Feb 24, 2009 2:49 pm

hi,
I have a question on the tax system in Finland. Could somebody help me if you know the answers?
I live in Finland for total about 6 years now (with permanent permit) and did not have too much trouble in Tax card filling as I used to work for a Finnish company.
Now, I am working for the company in UK as a home office worker and suddenly realised that I have to do everything by myself now!

The company in UK really does not care about my local tax. They just send my salary and allowances all together to my bank account in Finland without detailed notes. I have looked through the Vero web site and try to gather all information that I need, but I still have a few questions before visiting vero office:

1. I would like to have tax deductions on my home office, communication fee, electricity, water, car parking space etc. does it require a special registration like I own my business?
Or is there some kind of limitations if I do this as a employee rather than a business owner?

2. I have some car allowance for fixed amount every month, however the company does not own the car. So this is not a company car, and my salary slip does not separate the car allowance from rest of my salary either.
what do you think is the best way to do from tax point of view? Do I have to pay more tax In the case the car allowance is just considered as my salary?

3. does anybody know a good English speaking tax consultant who could advise on these?

Thank you in advance if somebody could help.

**Sponsor:**

Rosamunda · Post by **Rosamunda** » Tue Feb 24, 2009 3:09 pm

There is a new office in Kamppi that deals with things like this. You could try them. It is a walk in service or email, they don't take phone calls. The service is offered in many languages including English and is free:

http://www.intofinland.fi

and most of the information you need is on http://www.vero.fi (but sometimes it is hard to find it).

libre · Post by **libre** » Tue Feb 24, 2009 3:53 pm

thanks for your quick help, Penelope!
I think I have seen this site before but haven't got any advise before from them.
I'll check the info on the web and go to see them if necessary.

Pursuivant · Post by **Pursuivant** » Tue Feb 24, 2009 3:59 pm

Please do come back then and tell how you figured this out - theres more and more people doing this kind of stuff but theres not really been any totally comprehensive narrative of "how it works". What I am having a hunch is as they want someone to pay the social fees & pension insurance that is what I am seeing as the most interesting point.

raamv · Post by **raamv** » Tue Feb 24, 2009 5:02 pm

Pursuivant wrote:Please do come back then and tell how you figured this out - theres more and more people doing this kind of stuff but theres not really been any totally comprehensive narrative of "how it works". What I am having a hunch is as they want someone to pay the social fees & pension insurance that is what I am seeing as the most interesting point.

you also mean on top of regular income tax!!
Interesting or me to see how you can pay tax without
(a) working for a Finnish company ( Need Y-Tunnus no. since there is tax at source)
OR
(b) Having your own company (TMI or Oy)..

libre · Post by **libre** » Tue Feb 24, 2009 9:31 pm

I am guessing that I will probably end up establishing a "toiminimi" in order to expense the home office facility..

Rosamunda · Post by **Rosamunda** » Wed Feb 25, 2009 11:25 am

Yes, that's what I thought too. But then (I believe) you would become a supplier to your employer rather than an employee and you would have to invoice them in the UK for the work you do. You probably wouldn't have to pay VAT though if your customer is cross-border (there is something on Vero.fi about invoicing cross-border service supplies and VAT).

This could be a tricky one because if, as a toiminimi, you have only one customer, I am not sure how generous Vero will be with the tax-deductible expenses. A toiminimi is really for freelance type people who have multiple clients. At least that is the gist of it. But I would also be interested to know what advice you are given. It regularly comes up on here and I have never seen an "official" solution.

raamv · Post by **raamv** » Wed Feb 25, 2009 4:08 pm

my understanding of a TMI is private company for providing products/services inside Finland.
but I might be completely wrong here

You might be better off with an OY. than a TMI!!

libre · Post by **libre** » Fri Mar 13, 2009 11:28 am

I am one of a board members of small Oy type of company in Japan so I agree OY is best as far as you have a good accountant. However one problem would be the contract between my company and myself. I once failed to renew my employment contract from my personal contract to between company contract, and I unfortunately still work for them.

So I think its possible for me to do OY also in Finland but that won't help my amount of tax I have to pay. (as it does not include majority of my income.)

So far I have learned a lot from the links and Vero documents on Toiminimi etc, but don't have lots of time to find more or accountant etc. So I decided to first try a ennakkovero, and see that is going to be really disaster for me or not.
(It is not confortable to have money what I don't know if I can use or not. ; )

I have been to tax office and created my ennakkovero(even though it was not so easy to let people understand my situation), and also set my first home deduction. All other expenses seems to be deducted from next year. As far as a lady in Verotoimisto said to me I can expense a fixed amount for my home office equipments such as base office expence, and electricity, but for example car parking space cannot etc.

The only other way would be Toiminimi for me but I think I might have to have other income (which is possible if I am not a lazy person only for a small amount)to do so. There I sill have things to investigate.

libre · Post by **libre** » Fri Mar 13, 2009 3:42 pm

just to share my note;
ok, it is mandatory in Finland that you are under health insurance and also under pension project besides KELA basic support.
when you don't have this, for example, you cannot take paid sick leave based on your doctor's approval, etc.
I was quite shocked when they say its 21.4% for everybody if your income is over 49.93€ (only?! ok, if your income is 50€/kk then you pay 10.7€ from there..), and they also said to me you have to cover them all if your company does not take care of it.

you pay about 30% tax and 21% more?!!

On the other hand, it is employer's legal obligation to arrange pension provisions for the employees and there's no certain legal punishment defined for a employee side as far as I studied. So far I have not heard that anything like pension will not be paid (you anyway have basic kela pension probably?) either. It might be a slight problem if you try to get a paid sick leave from local doctor, though.
I need more info to confirm, but the one thing I can say for sure is you have to cover 100% everything such as pension, health insurance, etc, by yourself if you become a business owner.

Upphew · Post by **Upphew** » Fri Mar 13, 2009 3:55 pm

libre wrote:you anyway have basic kela pension probably?

And that kela pension comes from...
If you guessed that from pension payments that companies pay, you got that right.

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