Tax withheld at source from key empoloyees will decrease on 1 January 2026 – no new tax card needed

Tax withheld at source from key employees coming from other countries will be reduced at the beginning of 2026 from 32 to 25 per cent. The change applies to wages and salaries paid on or after 1 January 2026.

A person coming from abroad to Finland can apply for key employees’ source-based taxation if they work in Finland in tasks requiring special expertise and if certain other conditions are met.

A tax card previously granted to a key employee may be valid up to 84 months. The tax card shows the tax rate (32%) according to the act that is in force until the end of 2025.

Starting on 1 January 2026, the employer can apply the tax rate according to the new act to the wages and salaries governed by the act on key employees at its own initiative. In other words, the wage earner does not need to apply for a new tax card for key employees only because of the tax rate change if the circumstances otherwise remain unchanged and the conditions laid down in the act on key employees are still met.

The scope of application of the act on key employees expands on 1 January 2026 to also apply, under certain conditions, to Finnish citizens moving back to Finland. The change concerns work started on or after 1 January 2026.

Read more:

Foreign key employees

Taxation of key employees (will be updated)