Working on board a Finnish ship (Bulletin to seafarers resident outside Finland)
In force until further notice
If you have income sourced in Finland, or wages earned on board a Finnish ship, you are usually liable to tax in Finland even though you are a tax resident of another country. This bulletin explains the principles of tax assessment on wages earned on board a Finnish ship.
Flat tax at 35 % and right to income deduction
If you are not a Finnish resident and you work on board a Finnish ship, you have to pay 35% of your gross wages as Finnish tax *).
Your Finnish employer will withhold this amount from your wages. Consequently, you will not have to submit an income tax return to the Finnish tax authorities.
Before collecting the 35 % tax, your employer can deduct a non-resident’s deduction (= € 510 per month or € 17 per day) from your pay. This requires that the deduction be mentioned in the tax-at-source card issued by the Finnish tax office. Please fill out form 6201e to submit a request for a tax-at-source card. Your employer may assist you in the process.
Employer-paid social insurance premiums
In addition to tax, employers also have to pay social security contributions in Finland. However, if you are a holder of an A1 or E 101 Certificate, you are covered by the social security system of your home country, and these payments will not be payable to Finland.
Is at least 75 % of your annual gross income sourced in Finland?
If wages derived from Finnish sources make up at least 75 % of your earned income and you are a resident of an EU/EEA-country, you will be entitled to request that tax at the 35-percent rate will not be applied, and your income will be taxable at the progressive scale. You can make this request after the end of the year concerned if the result seems to turn out more favourable to you. Use form 6148e to submit the request.
For more information, call the Telephone Service at +358 20 697 024 (International tax situations), or contact Helsinki Area Tax Office, PO Box 400, FI-00052 Vero.
Include Finland-sourced income in your tax return in home country
When declaring your annual income in your usual income tax return, in your home country, you should give details on your Finland-sourced income and the taxes paid to Finland. If your home country imposes tax on the Finnish income, the authorities will perform the necessary calculations to eliminate any double taxation.
*) If you are a resident of the Netherlands or Russia, you pay tax on seafarer’s income to your home country only. This rule is in force in accordance with the provisions of the Tax Treaties Netherland/Finland and Russia/Finland.