Information on international work
The payer must use the earnings payment report to submit incomes data regarding international work to the Incomes Register whenever the payer is obliged to give information to any data user retrieving data from the Incomes Register. In addition, the report Information on international work is submitted in international working situations.
Information on international work must be reported in case the income earner works abroad for a longer period of time. Brief trips abroad need not be reported.
The report can be used to submit the following data:
Report data on the withholding of tax in Finland when work is performed in another Nordic country.
The NT1 report is submitted when an income earner resident in Finland (resident taxpayer) works in another Nordic country (Iceland, Norway, Sweden, Denmark and the Danish autonomous area Faroe Islands; not Greenland) for less than six months. By submitting an NT1 report you ensure that the income earner will not have to pay withholding tax in the country of work in addition to Finland. The report serves as proof to the authorities in the country of work that tax is being withheld in Finland.
Ensure before submitting an NT1 report that the following conditions are met:
- the wages are paid by a Finnish employer
- the income earner resides in the country of work no more than 183 days over a period of 12 months
- the arrangement does not constitute employee leasing
- the payment does not burden the result of a permanent establishment of the employer in the country of work (for more information on a permanent establishment and related conditions, ask the Tax Administration).
The NT1 report must be submitted by the fifth calendar day following the first payday of work abroad.
Report the data if no tax is being withheld in Finland on wages paid for work performed abroad.
The NT2 report is submitted if the income earner works abroad for more than 183 days and the Finnish employer applies the six-month tax exemption rule to the income earner’s wages. This means that the wages paid to the income earner are not subject to withholding tax in Finland. Read more about the Tax Administration’s six-month rule.
There may be more than one country of work during the stay abroad. If the employee moves from one country to another to work, you must submit another NT2 report.
The employer must report the NT2 data no later than on the fifth calendar day following the payday when the wages are not subjected to withholding for the first time.
An employer’s report on periods of stay in Finland is submitted if the six-month tax exemption rule is applied to the wages of the income earner working abroad. The report should provide data of the periods during which the income earner working abroad resides in Finland.
You may report the information
- during work, for example once a month
- once the work abroad ends, if the entire working abroad takes place within one calendar year
- as one-off report for the entire calendar year once the year has ended.
In any case, report the working abroad data for the calendar year always by the end of January in the following calendar year.
Income earner works in the United States from 1 January to 30 November 2019. He takes a holiday in Finland from 21 June to 31 July and from 28 September to 13 October (i.e. only during June, July, September, October). If the employer reports the periods of stay monthly, they provide a report during the stay in the United States of the calendar months that do not involve staying in Finland. For the duration of stay in Finland, the employer reports the periods of stay: In 21st to 30th in June, 1st to 31st in July, 28th to 30th in September and 1st to 13th in October.
In this case the information for 2019 could also be reported as a one-off report for the entire period once the income earner has made his final return to Finland. In this case, the employer would report the whole year’s working periods in the December report, since the international assignment ended in November. They would have to submit a report on the periods of stay in Finland in 2019 by 31st January 2020.
Information on international work has three parts
2. Report data