The information to be reported on the earnings payment report concerning the income earner is presented in the table.
A foreign employer who does not have a permanent establishment in Finland as regards income taxation must submit an earnings payment report to the Incomes Register in the following situations:
- The income earner is insured in Finland (works in Finland or abroad)
- The income earner stays in Finland for more than six months, even if he/she is not insured in Finland.
The obligation to report data to the Incomes Register for the Tax Administration only applies to work performed in Finland. However, a resident taxpayer has tax liability to Finland for global income. If the employee works partially in Finland and partially abroad during the same pay period, the foreign employer must submit data on the full income, i.e. also the share of the work performed abroad. If the employee is insured in Finland, a report must be submitted to the Incomes Register also when the work has been performed abroad in its entirety.
A Finnish employer must submit information with an earnings payment report to the Incomes Register in the following international situations:
- Income is paid for working abroad (income earner lives abroad or in Finland)
- Income is paid for working in Finland to an income earner who comes from abroad to work in Finland.
- A foreign group company pays wages for working abroad, when a Finnish employer has posted an employee abroad and the income earner is insured in Finland.
- Wages for insurance purposes has been agreed on for working abroad.
A foreign corporate entity with resident tax liability in Finland is also considered as Finnish employer.
In addition to the information presented in the table, the payer must submit the employee’s social insurance contributions collected, if any, and the tax at source or taxes withheld, such as the minimum withholding. Additionally, the payer must provide the information to be submitted on the employer's separate report on the basis of the wages of employees for whom health insurance has been taken out.
- Information on periods of stay in Finland can be reported by the end of January of the year following the year of payment.
- If a foreign group company pays the wages, the NT1 and NT2 information or information on periods of stay need not be submitted.
Working abroad.
| Income earner's status in taxation |
Is the income earner subject to Finnish social security? |
Has the wages for insurance purposes been determined? |
Does the six-month rule apply? (Section 77,
Income Tax Act)
|
Which information must be submitted to the Incomes Register? |
| Resident taxpayer |
Yes |
Yes |
Yes |
- If necessary: Other payer details: A foreign group company
- Submitted only if a foreign group company pays the wages.
- Additional income earner data: Person working abroad
- Social security certificate: From Finland A1 certificate or agreement (complementary additional data)
- Wages for insurance purposes (monthly)
- Six-month rule is applicable: Yes
- Country code of country of work
- Additionally, the information to be submitted on the NT2 form must be provided at the beginning of work.
- If a foreign group company pays the wages, NT2 information need not be submitted
- Employer's report on periods of stay in Finland.
- Information on actual periods of stay in Finland are reported at the latest by the end of January of the year following the year of payment.
- If a foreign group company pays the wages, information on stay periods in Finland need not be submitted.
|
| Resident taxpayer |
Yes |
Yes |
No |
- If necessary: Other payer details: A foreign group company
- Submitted only if a foreign group company pays the wages.
- Additional income earner data: Person working abroad
- Social security certificate: From Finland A1 certificate or agreement (complementary additional data)
There are two alternative methods for reporting income:
- Reporting method 1:
- Wages for insurance purposes (monthly)
- Six-month rule is applicable: No
- Type of insurance information: Subject to health insurance contribution Grounds for insurance contribution: No
- Total wages (the actual amount paid)
- Type of insurance information: Grounds for earnings-related pension, unemployment, and accident and occupational disease insurance contributions: No
- Reporting method 2, which requires submitting two separate reports:
- Wages for insurance purposes in their own report
- Six-month rule is applicable: No
- Type of insurance information: Subject to health insurance contribution Grounds for insurance contribution: No
- And on a separate report
- Income earner details: Type of exception to insurance: No obligation to provide insurance (earnings-related pension, unemployment, or accident and occupational disease insurance)
- Not reported: Social security certificate
- The actual amount of wages paid, with reporting method 2, e.g., time-rate pay
- Additionally, the NT1 or NT2 information must be provided at the beginning of work if the person is working in a Nordic country.
- If a foreign group company pays the wages, the NT1 and NT2 information need not be submitted.
|
| Resident taxpayer |
Yes |
No |
Yes |
- If necessary: Other payer details: A foreign group company
- Submitted only if a foreign group company pays the wages.
- Additional income earner data: Person working abroad
- Social security certificate: From Finland A1 certificate or agreement (complementary additional data)
- Amount of income paid (all the income types of the earnings payment report are in use)
- Six-month rule is applicable: Yes
- Country code of country of work
- Additionally, the information to be submitted on the NT2 form must be provided at the beginning of work.
- If a foreign group company pays the wages, the NT2 information need not be submitted.
- Employer's report on periods of stay in Finland
- Information on actual periods of stay in Finland are reported at the latest by the end of January of the year following the year of payment.
- If a foreign group company pays the wages, information on periods of stay in Finland need not be submitted.
|
| Resident taxpayer |
No |
No |
Yes |
- Type of exception to insurance: Not subject to Finnish social security (earnings-related pension, health, unemployment or accident and occupational disease insurance)
- Social security certificate, if necessary: To Finland A1 certificate (complementary additional data)
- Amount of income paid (all the income types of the earnings payment report are in use)
- Six-month rule is applicable: Yes
- Country code of country of work
- Information to be submitted on the NT2 form must be provided at the beginning of work.
- Employer's report on periods of stay in Finland
- Information on actual periods of stay in Finland are reported at the latest by the end of January of the year following the year of payment.
|
| Resident taxpayer |
No |
No |
No |
- Type of exception to insurance: Not subject to Finnish social security (earnings-related pension, health, unemployment or accident and occupational disease insurance)
- Social security certificate, if necessary: To Finland A1 certificate (complementary additional data)
- Amount of income paid (all the income types of the earnings payment report are in use
- Situations applicable in the Nordic countries: NT1 information (or possibly NT2 information if the country of work has taxing right and an application for tax card has been submitted)
|
| Non-resident taxpayer (tax at source) |
Yes |
Yes |
- |
- If necessary: Other payer details: Public sector
- If necessary: Other payer details: Foreign group company
- Submitted only if a foreign group company pays the wages.
- Additional income earner data: Person working abroad
- Finnish customer ID (if any)
- Foreign tax identification number, country of residence, and contact information in home country
- Social security certificate: From Finland A1 certificate or agreement (complementary additional data)
- Additional income earner data: Non-resident taxpayer: Yes
- Country code of the country of residence
There are two alternative methods for reporting income
- Reporting method 1:
- Wages for insurance purposes (monthly)
- Total wages
- Type of insurance information: Subject to social insurance contributions, Grounds for insurance contribution: No
- Reporting method 2, which requires submitting two separate reports:
- Wages for insurance purposes in their own report
- And on separate report
- Income earner details: Type of exception to insurance: No obligation to provide insurance (earnings-related pension, unemployment, or accident and occupational disease insurance)
- Not reported: Social security certificate
- The actual amount of wages paid, with reporting method 2, e.g., time-rate pay
|
| Non-resident taxpayer (progressive taxation) |
Yes |
Yes |
- |
- If necessary: Other payer details: Foreign group company
- Submitted only if a foreign group company pays the wages.
- If necessary: Other payer details: Public sector
- Additional income earner data: Person working abroad
- Finnish customer ID (if any)
- Foreign tax identification number and contact information in home country
- Social security certificate: From Finland A1 certificate or agreement (complementary additional data)
- Additional income earner data: Non-resident taxpayer: Yes
- Country code of the country of residence
- Income subject to withholding: Yes
There are two alternative methods for reporting income
- Reporting method 1:
- Wages for insurance purposes (monthly)
- Type of insurance information: Subject to health insurance contribution. Grounds for insurance contribution: No
- Total wages
- Type of insurance information: Subject to earnings-related pension insurance contribution. Grounds for insurance contribution: No
- Type of insurance information: Subject to accident and occupational disease insurance contribution. Grounds for insurance contribution: No
- Type of insurance information: Subject to unemployment insurance contribution Grounds for insurance contribution: No
- Reporting method 2, which requires submitting two separate reports:
- Wages for insurance purposes (monthly) in their own report
- Type of insurance information: Subject to health insurance contribution Grounds for insurance contribution: No
- And on a separate report
- No obligation to provide insurance (earnings-related pension, unemployment, or accident and occupational disease insurance)
- Not reported: Social security certificate
- The actual amount of wages paid, with reporting method 2, e.g., time-rate pay
|
| Non-resident taxpayer |
No |
No |
- |
- If necessary: Other payer details: Public sector
- Finnish customer ID (if any)
- Foreign tax identification number and contact information in home country
- Type of exception to insurance: Not subject to Finnish social security (earnings-related pension, health, unemployment or accident and occupational disease insurance)
- If voluntarily insured:
- Type of exception to insurance: Voluntary insurance in Finland (earnings-related pension insurance); in such a case, earnings-related pension insurance is not entered as Type of exception to insurance data
- Additional income earner data: Non-resident taxpayer: Yes
- Country code of the country of residence
- Amount of income paid (all the income types of the earnings payment report are in use)
|
