Operation of ships and aircraft in international traffic
If you are a foreign citizen and you work on board a Finnish ship sailing in international waters or in an aircraft (as a seafarer, as a pilot or stewardess etc.), the country that taxes your income is determined by the provisions of tax treaties. Treaties include special Articles on the agreed tax procedures affecting these lines of work. They normally provide that the employer company's country of residence (or the country of location of its management) gets the taxing rights.
If you work for an employer who is Finnish, the country that taxes your income is Finland. If you do not live in Finland, your employer withholds 35% tax at source on your income. An exception to this rule are the employees who live in other Nordic countries of an aircraft that flies international routes: the only country that taxes their income is the country where they live. In all of the above cases, we recommend that you ask for a Finnish tax card. Airline employees who live in other Nordic countries are issued cards with the words "Exemption from Tax" marked on them. Others are issued cards with "Deduction for Tax At Source". This deduction amounts to €510 per month or €17 per day.
Tax at source is a final tax, and there is no obligation to file a tax return in Finland. Your employer gives you a pay slip that specifies the income paid to you and the taxes withheld on it. You should retain it for future use, because you may have to show it to the tax authorities of your country in order to ensure that any double taxation is prevented.
Although you may be a resident of a foreign country, Finland may impose tax on your income, if you receive it from Finnish sources including from a Finnish ship. If you work on board a Finnish ship, your employer withholds 35% tax at source on your income.
Before computing the amount to be withheld, they may deduct €510 per month or €17 per day from your gross income, on the condition that you have a tax-at-source card with a deduction instruction printed on it. You can get a card at a Finnish tax office. You do not have to fill out the application form yourself – you can ask your employer to do it. When we receive your application we make a check of how the applicable tax treaty may affect your taxes. For example, it has been agreed in tax treaties that seafarers who live in the Netherlands or in Russia only pay tax to their own countries.
In addition to the tax, your Finnish employer also withholds insurance contributions on your income. However, if you are a holder of the A1 or E101 Certificate, proving that no Finnish insurance contributions should be collected, your employer does not withhold them.
If you are a leased employee working on board a Finnish ship or aircraft, your wages are taxed in Finland even if your employer were a foreign leasing agent. However, due to the provisions of tax treaties, if you live in a Nordic country that is not Finland and you work on board a Finnish aircraft, Finland may not be the country of taxation. If your employer company - i.e. the leasing agent - does not have a permanent establishment in Finland, it does not have to withhold tax on your wages and pay it on to the Finnish tax authority. In this case, you may seek tax treatment in Finland either based on taxation at source, or based on an income-tax prepayment calculation scheme, depending on whether you are a tax resident of Finland or a nonresident. If no Finnish tax-at-source has been imposed on your wages in advance, you must report your wages to the Finnish Tax Administration yourself. File the information in MyTax or on paper with Form 50A (Earned income and deductions). If you must additionally pay tax in your country of residence on the wages you earn, the resulting double taxation is relieved by the authorities of that country.
Drivers of motor vehicles
If you do not live in Finland but you work for a Finnish freight company and on routes spanning several countries, the country that taxes your income is Finland only if more than half of the routes effected during your pay period are in Finnish territory. Your employer withholds 35% source tax on your pay. We recommend that you ask for a Finnish tax card, whatever your specific circumstances are. Such cards usually have "Deduction for Tax At Source" marked on them. This deduction amounts to €510 per month or €17 per day. You do not have to fill out the application form yourself – you can ask your employer to do it.
You may ask for progressive taxation
that is, in the same way as that of those who stay in Finland longer than six months. If you want a progressive tax you must ask the Tax Administration for a non-resident's tax card. When you fill out the application form you must report all your Finnish-sourced earned income, your taxable earned income in your country of tax residence, and all deductions from them. Finland only taxes your income from Finnish sources, but your taxable income from your country of tax residence will have an increasing effect on your taxation in Finland.
If your taxation is by the progressive scale, you will receive a pre-populated tax return during the following year on which you will find a specification of your income and deductions, and the final result of your assessment (whether you must pay more taxes or whether you get a refund). Check the information printed on the pre-completed tax return form. If there is no need for corrections or additions, you do not have to do anything. If needed, you can make changes or corrections to your tax return in MyTax or on paper forms.
If you did not ask for progressive tax during the income year when your employer(s) withheld source tax on your pay, you still have the option to do so afterwards. File the information on paper forms
Finnish-sourced income on the tax return of the country of residence
When you complete your income tax return for your home country, you must include your Finnish-sourced income in it and also the taxes you paid here. If you must pay additional taxes in that country, the information on your tax return will help its tax authorities to eliminate any double taxation of your income.