Working from home for a foreign employer
This guidance is for Finnish-resident individuals who have a foreign employer but who work at least partly from their home in Finland on a remote connection.
You live in Finland but you have travelled to another country to work for a foreign employer
In general, if you stay in a foreign country and work for an employer there, you must pay tax on your wages to the foreign country where you work and stay. However, you are expected to submit an income tax return to your country of residence (Finland) to give details on the wages received. After that, when your Finnish taxes are assessed, any tax you have paid to the foreign country will be taken into consideration.
You work from home when in Finland
If you have returned to Finland and begun working here over a remote connection (teleworking), Finland becomes your “country of work”. From this follows that you will have to pay tax to Finland.
Because you do not work for a Finnish employer, there is no withholding of Finnish tax from your wages although you are present in Finland. This means that you must pay Finnish tax in the form of regular prepayments.
Request prepayments. Read more about prepayments
Contact the tax authorities of your employer’s country. You must agree with them that you no longer need to pay any withholding tax to that country because you have begun working in Finland. If withholding has been carried out in the other country on the part of your wages received for working in Finland, contact the authorities and ask for refund.
If you have received wages for your work in a foreign country and the six-month rule has made those wages exempt from Finnish taxes, please note that the six-month rule does not extend to the wages you receive for the work you do in Finland.
- Working for a foreign employer, as an employee of a foreign employer
- Effects of the Coronavirus pandemic on taxes on income received for working in a foreign country (the six-month rule and forces majeures)
- Taxation of employment income earned abroad.
You do part of your work using a remote connection in Finland
If you live in Finland permanently and in addition to travelling to your employer’s country to work, you also work from home, the wages you earn are subject to tax in the other country only insofar as the wage is paid for your work in that country. It may be necessary to count the days worked in each of the two countries in order to divide your income in two parts as appropriate.
Because you live in Finland on a permanent basis, you pay Finnish tax to Finland on your entire wages. The country that relieves any double taxation is Finland. This is done by taking account of the tax you have paid to the other country on the part of your wages that you have earned there.
Example: An individual residing in Finland works for a German company. She has made an agreement with the employer company that she works 10 days per month in Germany, and for the rest of the month, she works from home in Finland. She pays tax to Germany on the wages she receives for the 10 days per month. The Finnish Tax Administration imposes tax on the sum total of her wages. However, the tax she has paid to Germany is subtracted. In accordance with the provisions of the tax treaty between Germany and Finland, the authorities use the credit method to eliminate double taxation. As a result, her Finnish tax is reduced because the amount paid to Germany is subtracted from it.
You work from your home in Finland, and your employer’s country of tax residence is another Nordic country
The Nordic countries share an administrative objective that aims for having all workers pay their withholding taxes to one Nordic country only. This is one of the objectives of the TREKK Convention, an intra-Nordic agreement.
Do this regarding tax year 2020
Wages that you have received from work done in Finland are subject to tax only in Finland. If you have paid taxes on work done in Finland to another Nordic country, request the tax authorities of that country to transfer the taxes to Finland. The Tax Administration will take the taxes into account in the tax assessment in Finland.
When you submit your Finnish income tax return, you should provide a full account of your income from Nordic sources and the taxes you have paid to other Nordic countries:
- File the wages earned for the work done in Finland either in MyTax or on Form 50A under Wages, salaries, fees and compensation. This line on Form 50A is for the amount paid to you by your Nordic employer for the work you have carried out in Finland.
- The line in MyTax for the amount paid to you for the work you did in the other Nordic country is Work abroad, not covered by the six-month rule. On Form 16A, it is item 4, Work abroad not covered by the six-month rule. Tick the option “I am applying for the transfer of tax liability from Finland to another Nordic country, or vice versa”.
- Request the transfer of taxes from another Nordic country to Finland if you have paid taxes to another Nordic country on wages you have received for working in Finland. To make the request, answer Yes to "Are you applying for the transfer of tax from Finland to another Nordic country or from another Nordic country to Finland?" in MyTax or tick the option "I am applying for the transfer of tax liability from Finland to another Nordic country, or from another Nordic country to Finland" on Form 16A.
Add a free-text enclosure to indicate that the country where you were originally supposed to work has given you social insurance if, by way of exception, the social insurance scheme of that country covers you.
The amount withheld in another Nordic country may be different from the amount resulting from the final assessment of your Finnish taxes. This means that you may have to pay a back tax. To avoid that, you can make an additional prepayment to the Finnish Tax Administration.
Your work from a location in Finland still continues in 2021
If you keep working for your Nordic employer in 2021 and you work via a remote connection while in Finland, this is what to do:
After the new year has begun, submit an application to the tax office to get a prepayment calculation. Read more about prepayments.
- Estimate the total number of days that you will work from a location in Finland
- Request a change of the prepayment amount if any changes occur in your circumstances
Contact the tax authority of the other Nordic country
Contact the tax authority of the other Nordic country, too. You need to agree with that tax authority that you are no longer under obligation to pay withholding taxes to the other Nordic country for the part of your work that you carry out in Finland.
Read more about the agreement between Nordic tax authorities (the TREKK Convention)