9th November 2018
As we mentioned in a recent blog, Finland hosts a wealth of opportunities for contract professionals. With a culture of innovation and a buoyant economy, it’s perhaps no wonder that freelance experts from multiple backgrounds look to this location for their next opportunity. However, for any professionals seeking to make a move to this destination or already on assignment here, the Finnish tax system has undergone some changes that will impact you. Here’s what you need to know.
New Finnish tax system
As of next year, the tax income cards issued to workers will have a set earnings limit for the year, rather than individual parameters for each payment cycle. Where this figure is exceeded, the end-hirer is responsible for applying a higher rate to the individual.
Separate tax cards for additional employment will also be removed with a single tax rate now being applied to all work through the tax year. As a result, any professional receiving payment from multiple jobs throughout this time will be subject to one annual tax rate.
While on paper this should streamline processes for contractors, individuals shouldn’t fall into the trap of complacency. In fact, following this announcement in October, tax authority, Vero, advised taxpayers to monitor their pay throughout the course of the year – particularly those working for several employers during this time.
Of course, the best way to ensure these tax changes have minimal impact on you is to partner with an expert in international contractor management solutions. Our specialist team is on hand to speak to you today – why not get in touch?
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