Date of entry for tax when between countries

[Zack999]

I've been living between the UK and Finland for almost 6 months, for roughly an equal amount of time. Working in the UK both physically and remotely when in Finland. I have a house in both countries. I registered my right of residence in Finland last October, basically because of one of those Brexit deadlines. I have been considering my options of where to permanently reside ever since. I'm not sure if I should be declaring my UK income in Finland from when I registered my right of residence back in October. Or if I can choose a date of when I consider to have decided where I reside. There are lots of mentions about how you are liable for Finnish tax after 6 months in Finland, when you are employed by an overseas employer. That would mean I would need to declare income from about now, but I'm not sure if the "right of residence" application overrides that. Anyone any ideas?

[betelgeuse]

I've been living between the UK and Finland for almost 6 months, for roughly an equal amount of time. Working in the UK both physically and remotely when in Finland. I have a house in both countries. I registered my right of residence in Finland last October, basically because of one of those Brexit deadlines. I have been considering my options of where to permanently reside ever since. I'm not sure if I should be declaring my UK income in Finland from when I registered my right of residence back in October. Or if I can choose a date of when I consider to have decided where I reside. There are lots of mentions about how you are liable for Finnish tax after 6 months in Finland, when you are employed by an overseas employer. That would mean I would need to declare income from about now, but I'm not sure if the "right of residence" application overrides that. Anyone any ideas?

A couple sources of information:

1) Finnish tax residency

https://www.vero.fi/en/detailed-guidanc ... residency/

2) Tax treaty when both countries consider resident

https://assets.publishing.service.gov.u ... _force.pdf

Especially article paragraph (2) of article 16. Not really easy reads though.

As a side note you should consider the Finnish legal requirement to keep your address information up to date in the population register. This is how the tax authority can get information about your situation.

[FinlandGirl]

I'm not sure if I should be declaring my UK income in Finland from when I registered my right of residence back in October. Or if I can choose a date of when I consider to have decided where I reside.

What date did you enter in the "When did you move to Finland?" field when registering your Right of Residence?

There are lots of mentions about how you are liable for Finnish tax after 6 months in Finland,

It is not "after", staying over 6 months in Finland creates tax liability from the beginning.
Stays shorter than 6 months also create Finnish tax liability if the main abode is in Finland according to the Population Register.

[betelgeuse]

It is not "after", staying over 6 months in Finland creates tax liability from the beginning.
Stays shorter than 6 months also create Finnish tax liability if the main abode is in Finland according to the Population Register.

Not necessarily if, for example, one continues to be tax treaty resident abroad according to treaty rules. Once you are considered tax resident according to national rules, you do have to report income though even if it’s not taxed.

[inkku]

it is not bluntly 6 months, it is certain number of days in country during any period of six months.

[FinlandGirl]

It is not "after", staying over 6 months in Finland creates tax liability from the beginning.
Stays shorter than 6 months also create Finnish tax liability if the main abode is in Finland according to the Population Register.

Not necessarily if, for example, one continues to be tax treaty resident abroad according to treaty rules. Once you are considered tax resident according to national rules, you do have to report income though even if it’s not taxed.

It would be hard claiming not to be liable for tax in Finland for someone who has declared back in October to have already moved the residency to Finland. This is also the information Vero sees in the Population Register.

The misunderstanding regarding the 6 months was that it doesn't mean that no taxes have to be paid during the first 6 months, it is just one of the options how someone can become liable for Finnish taxes during the whole stay in Finland.

Taxation and social security for someone living in Finland but working for an employer in the UK are a separate topic that also depends on the taxation treaty between Finland and the UK.

[betelgeuse]

It would be hard claiming not to be liable for tax in Finland for someone who has declared back in October to have already moved the residency to Finland. This is also the information Vero sees in the Population Register.

The misunderstanding regarding the 6 months was that it doesn't mean that no taxes have to be paid during the first 6 months, it is just one of the options how someone can become liable for Finnish taxes during the whole stay in Finland.

Taxation and social security for someone living in Finland but working for an employer in the UK are a separate topic that also depends on the taxation treaty between Finland and the UK.

Are you sure you have properly understood the term tax liability?

"A tax liability is the total amount of tax debt owed by an individual, corporation or other entity to a taxing authority like the Internal Revenue Service (IRS). It is the total amount of tax you're responsible for paying to the taxman. Tax liabilities are incurred due to earning income, a gain on the sale of an asset or other taxable events. No tax liability means the taxpayer's total tax liability was zero in the prior year, or they did not have to file a tax return."

https://www.investopedia.com/terms/t/taxliability.asp