Hey,
I have been offered a Technical support position in finland with a monthly salary of 3100 ( 37200 annually)
I have been trying to work out what tax I will pay on that and what my net income. Working from the vero.fi site it seems to say that I would have a basic percentage of 23,0 and additional percentage of 38,5. Does that mean anything over 37200 would be at the additional rate or that my pay encompasses both rates.
So would I take the 23% off my annual gross or take the 8463.31 Total annual taxes it gave me, because im not sure if thats all correct. I would live in vantaa. Any help understanding this would be great
http://prosentti.vero.fi/veropros_aloit ... nguage=ENG
Working Out Taxes
Re: Working Out Taxes
The additional tax rate is the one that is used if you have another source of income, eg from another job. It is always higher than the basic withholding rate that you are given. So, your main job is taxed at 32% assuming you are earning 37K. If you, eg work some overtime and your salary (from your main job) exceeds 37K then you can either pay the extra at the end of the year or you can call Vero and ask them for a new tax card so they withhold a bit more each month.
There are certain deductions that can be made eg if you employ someone/a company to do the cleaning in your home, if you are paying interest on a mortgage, if you employ someone to make some improvements to your home (painting/decorating etc).
There are certain deductions that can be made eg if you employ someone/a company to do the cleaning in your home, if you are paying interest on a mortgage, if you employ someone to make some improvements to your home (painting/decorating etc).
Re: Working Out Taxes
Hey, did you mean to put 23% rather than 32%???
So for my salary i should just take 23% off and thats my take home pay.
Thanks, thats very helpful. I'm from the UK currently, so when i move to finland is there much i need to do. I heard I need a tax card, a kela card, and a finnish ID number. Are these all easy to get. I'm also going to need a bank account there but i dont know if i'll need the ID number or anything else first. I've looked through all the sites on this information but its quite confusing i find.
So for my salary i should just take 23% off and thats my take home pay.
Thanks, thats very helpful. I'm from the UK currently, so when i move to finland is there much i need to do. I heard I need a tax card, a kela card, and a finnish ID number. Are these all easy to get. I'm also going to need a bank account there but i dont know if i'll need the ID number or anything else first. I've looked through all the sites on this information but its quite confusing i find.
Re: Working Out Taxes
Yes, I meant 23% not 32%
I put Vantaa and 37200 into the Vero tax calculator and it gave me 23% BUT:
The calculator only gives you the withholding rate of tax. However, employers usually also withhold insurance premiums from pay. To figure out a close estimate of your future take-home pay, please remember to include any premiums for your insurance coverage. Examples of such insurance are occupational pension insurance contracts, and unemployment insurance contracts.
So your employer may deduct other insurance premiums (ask your employer)
and
Withholding also includes pension and unemployment insurance premiums amounting to 4.7% and 0.6%.
Please add 5.3 percentage points to arrive at your actual withholding and to work out your actual take-home pay.
So, it's not 23%, it's 28.3%
And don't forget to opt out of the church, otherwise church tax will be deducted at source too. (Or opt in, it's up to you)
If you receive any other benefits (car, housing subsidy etc etc etc) they will all be taxed too. And any income you receive in the UK once you become officially domiciled here (maistraatti + KELA number) will also be taxable, here. So, eg if you inherit money from the UK, that will be taxed too. etc
All the answers are on this forum. I think there are some pretty good threads that sum it all up quite simple. If it's any consolation, it's probably MUCH MUCH easier to move into Finland than it is to move (legally) into the UK. If you need some specifics there is always this place www.intofinland.fi
I put Vantaa and 37200 into the Vero tax calculator and it gave me 23% BUT:
The calculator only gives you the withholding rate of tax. However, employers usually also withhold insurance premiums from pay. To figure out a close estimate of your future take-home pay, please remember to include any premiums for your insurance coverage. Examples of such insurance are occupational pension insurance contracts, and unemployment insurance contracts.
So your employer may deduct other insurance premiums (ask your employer)
and
Withholding also includes pension and unemployment insurance premiums amounting to 4.7% and 0.6%.
Please add 5.3 percentage points to arrive at your actual withholding and to work out your actual take-home pay.
So, it's not 23%, it's 28.3%
And don't forget to opt out of the church, otherwise church tax will be deducted at source too. (Or opt in, it's up to you)
If you receive any other benefits (car, housing subsidy etc etc etc) they will all be taxed too. And any income you receive in the UK once you become officially domiciled here (maistraatti + KELA number) will also be taxable, here. So, eg if you inherit money from the UK, that will be taxed too. etc
All the answers are on this forum. I think there are some pretty good threads that sum it all up quite simple. If it's any consolation, it's probably MUCH MUCH easier to move into Finland than it is to move (legally) into the UK. If you need some specifics there is always this place www.intofinland.fi