Artists and athletes performing in a foreign country
If you perform or participate in a sports event in a foreign country, tax is usually collected from the fee paid to you in the country where the event is organised.
Tax treaties do not usually prevent the collection of tax from a performer or an athlete in the country where the event is organised. Performances and sports events in the United States are the only exception to this rule. If you receive no more than USD 20,000 per year as a fee, including compensation for expenses, from the United States, this amount is not taxed in the United States. If that limit is exceeded, tax for the entire fee must be paid in the United States.
Report foreign-sourced income with a tax return
Foreign-sourced income must always be reported in a tax return in Finland.
If you don't use MyTax or other electronic filing, you must fill out Form 16A on paper, Statement on foreign income (earned income) (complete the 5.2 space).
How to file information for your tax return on paper.
If the tax in the foreign country is smaller than the tax in Finland, you must pay the difference in Finnish taxation.
If you only report the income in the tax return submitted, you may have to pay back taxes including interest. However, the local tax office may determine a prepaid tax for you, so you avoid paying back taxes. You can submit an application for a prepaid tax by yourself, if the local tax office has not otherwise determined it.
Check whether a prepaid tax is necessary
Estimate your tax rate with calculator (tax.fi/taxcalculator).
For a new prepaid tax or a change to the prepaid tax, you need an estimate of your income and deductions for the whole year. Report also income received in the early part of the year and how much tax has been withheld on it.
You can also apply for or change a prepaid tax
- in MyTax
- by calling the service number +358 29 497 024
- complete and print an application for a prepaid tax and send it to the Tax Administration by post
- by visiting the tax office
Double taxation will be eliminated
The remuneration you receive is taxable income in Finland also but, in order to eliminate double taxation, tax paid in a foreign country is usually deducted from the Finnish tax. If you work overseas for a continuous period of at least 6 months, special tax rules will sometimes apply. The rule known as the ‘six-month rule’ may mean that you will not need to pay Finnish tax on your foreign-sourced wages. The requirements include that you spend no more than six days per month in Finland, on average, and that the other country holds primary taxing rights in respect of your income according to the tax treaty.