Question Freelance Taxation

suppayami · Post by **suppayami** » Thu Oct 10, 2013 6:46 pm

Hello,
I'm a first year university student just came to Finland this year. Currently, I'm working as a freelancer who receive random requests on the internet and receive payment through paypal. My income a year would be around 1000 - 1500 euro. Also, I would like to withdraw my balance from paypal to my bank account in Finland. My question is: Do I have to pay tax in this situation? And if I have to pay, how much do I have to pay (in rate) and how can I pay for it?

Thank you.

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betelgeuse · Post by **betelgeuse** » Thu Oct 10, 2013 9:56 pm

suppayami wrote:Hello,
I'm a first year university student just came to Finland this year. Currently, I'm working as a freelancer who receive random requests on the internet and receive payment through paypal. My income a year would be around 1000 - 1500 euro. Also, I would like to withdraw my balance from paypal to my bank account in Finland. My question is: Do I have to pay tax in this situation? And if I have to pay, how much do I have to pay (in rate) and how can I pay for it?

Thank you.

You are liable to pay taxes on all worldwide income while resident here (staying over 6 months). Where you keep it or how you get paid doesn't matter. You will have to get a business id from the tax authority. Based on the form they will send you invoices to pay advance taxes. You can estimate the tax percentage with the calculator here:

http://prosentti.vero.fi/VPL2013/Sivut/ ... ieli=en-US

You put the profits to the field "Earned income subject to advance tax". If that's your only income then you wouldn't be taxed on it since it's below the minimum amount. You still have to report it though. The tax authority has a phone number available in English to help:

http://www.vero.fi/en-US/Tax_Administra ... nformation

betelgeuse · Post by **betelgeuse** » Thu Oct 10, 2013 10:11 pm

Do note that registering as a private trader means some obligations with for example accounting. For Finnish companies paying having a business id is not required when you present a tax card (instead of invoicing). The tax authority will be able to tell you if it's possible to avoid having a business id.

suppayami · Post by **suppayami** » Fri Oct 11, 2013 8:54 pm

Sounds complicated, but fine I think I will take my transition to tax office for more information. Thanks guys

betelgeuse · Post by **betelgeuse** » Sun Oct 13, 2013 1:06 pm

suppayami wrote:Sounds complicated, but fine I think I will take my transition to tax office for more information. Thanks guys

Yes Finnish system has a history on the assumption that when people work they do it in steady full time continuous jobs so handling random income has not been trivial. It has been slowly improving though.

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