Finnish citizen residing in Finland but working abroad for US based company

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downinsd
Posts: 1
Joined: Thu Apr 13, 2023 2:44 am

Finnish citizen residing in Finland but working abroad for US based company

Post by downinsd » Thu Apr 13, 2023 2:52 am

Hi all,

I'm a Finnish citizen, currently living in the US (permanent resident) but hopefully moving to Finland in the coming years. I work for a US based airline which would enable me to commute to work in the US from Finland quite easily. However, I'm a little confused about how taxation would work.

I would reside in Finland and spend 10-12 days per month "on the road" flying for my US based airline. The rest of the month would be spent in Finland.
How would this be taxed? My understanding of it based on what other people in similar situatiions have told me, is that the US would tax me normally, let's say 25%, and then based on my income and the tax rate that would be in Finland, I would pay the rest to them. So say that my tax rate would be 25% in the US, and 40% in FInland, I'd pay 25% to the US and the "remaining" 15% to FInland.

Does this sound correct? And if so, could anyone provide a link/document that explains it?

Thank you very much.



Finnish citizen residing in Finland but working abroad for US based company

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betelgeuse
Posts: 4353
Joined: Thu Aug 29, 2013 1:24 am

Re: Finnish citizen residing in Finland but working abroad for US based company

Post by betelgeuse » Thu Apr 13, 2023 11:12 am

downinsd wrote:
Thu Apr 13, 2023 2:52 am
Hi all,

I'm a Finnish citizen, currently living in the US (permanent resident) but hopefully moving to Finland in the coming years. I work for a US based airline which would enable me to commute to work in the US from Finland quite easily. However, I'm a little confused about how taxation would work.

I would reside in Finland and spend 10-12 days per month "on the road" flying for my US based airline. The rest of the month would be spent in Finland.
How would this be taxed? My understanding of it based on what other people in similar situatiions have told me, is that the US would tax me normally, let's say 25%, and then based on my income and the tax rate that would be in Finland, I would pay the rest to them. So say that my tax rate would be 25% in the US, and 40% in FInland, I'd pay 25% to the US and the "remaining" 15% to FInland.

Does this sound correct? And if so, could anyone provide a link/document that explains it?

Thank you very much.
The most important document is the tax treaty which can be found here:

https://www.irs.gov/businesses/internat ... -documents

It’s material whether you are employed or a contractor. For the former, the airline is responsible for things like pension payments to Finland.


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