From: tommi@rieska.oulu.fi (Tommi Kaikkonen)
Subject: A Short Guide For Completing a Tax Return in Finland
Organization: Taidonkaari 1 E 36, 90570 Oulu, FINLAND
Distribution: sfnet
Date: Sat, 2 Jan 1993 19:27:33 GMT

Happy New year 1993! Below is (maybe helpful for you) guide for tax
return in Finland which I got from a mailing list. Hope it helps somebody!
Mister Huachen Pan has done a very good job typing (or scanning in) the
english text! I just made a few little spelling corrections.
--Tommi Kaikkonen (tommi@phoenix.oulu.fi)

original>Date: Sat, 2 Jan 93 11:45:13 +0200
article >From: pan@hermes.hut.fi (Huachen Pan)
follows >To: chinese@vipunen.oulu.fi

Hi, netters:

The following is a short English tax guide:
<< Publication of the national board of taxes 571e >>
This is the only English one available from the tax office.
Detailed information are either in Finnish or Swedish.

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A SHORT GUIDE FOR COMPLETING A TAX RETURN IN FINLAND
------------------------------------------------------

This guide is primarily meant for foreigners whose sole income is wages and/or
salary.

TAX LIABILITY IN FINLAND

Forigners staying in Finland for a continuous period of more than six months
are subject to unlimited tax liability in Finland. The stay in Finland is
regarded as continues in spite of a tmporary absence from the country.
Individuals with unlimited tax liability must submit a Finnish tax return on
income earned in Finland and elsewhere during their residence here.

Individuals unlimitedly tax liable in Finland on the last day of the calendar
year must also declare their property to the Finnish authorities. Property
owned on the last day of the year in Finland and elsewhere must be entered in
the tax return.

PLACE OF ASSESMENT

Taxes are usually levied in the municipality where the tax payer in the
beginning of calendar year had a domicile in accoedance with the Population
Registrater Act. For purpose of taxation, however, persons who have moved to
Finland during the year are regarded as residents of Helsinki, and turn in
their tax returns there. The address of the Helsinki Tax Office is>
        Haapaniemenkatu 7-9 A, 00530 Helsinki.

SUBMISSION DEADLINE

Wage-earners must submit their tax return by February 1, 1993, preferably by
post. The envelop furnished with the address of the tax office must be posted
by February 1, 1993 at the latest. For compelling reasons, the submission
deadline for the tax return can be extended. You must state the reason for
your request to the tax office before the submission deadline. If an extension
is granted, the tax return must reach the tax office by the extended deadline.

WHERE CAN I GET A TAX FORM

Precompleted form are sent to the home address of  persons resident in
Finland. to the extent possible, forms will be sent to persons who have moved
to Finland in 1992 at the address available to the tax authorities. the
information in the precompleted form must be checked and corrections should be
made on the form.

If you have not received a form, please collect one from the tax office in
your municipality of domicile. Forms for wage-earners are available in Finish,
Swedish and English.

DATE ON FINAL TAXATION

In October-November 1993 taxpayers will receive a tax statement indicating
whether they will receive a refund or owe additional tax.  The statement
includes instructions for appeal.

The statement is
sent to the address stated on the tax return, unless the tax office has been
informed of a subsequent change of address. Taxpayers leaving Finland should
inform the tax office of the name and address of their representative in
Finland or, at least, of their own address abroad.

TAXES AND CONTRIBUTIONS

Taxes and contributions an individual has to pay in Finland include income
tax, property tax, municipal tax, church tax and national pension and
sickness insurance contributions.

Income Tax table 1992

Taxable income, FIM    Tax at the lower limit, FIM     Sectional percentage
40000 - 56000           50                              7
56000 - 70000           1170                            17
70000 - 98000           3550                            21
98000 - 154000          9430                            27
154000 - 275000         24550                           33
275000 -                64480                           39

Property Tax is collected only if taxable property exceeds FIM 1.1 million.

Municipal Tax ranges from 15% to 19%, depending on the domicile.
Chrch Tax varies from 1% to 2.5%, denpending on thr domocile.
The National Pension and Sickness Contribution is 5.25%, unless taxable income
exceeds FIM 80000, in which cases an increased contribution is collected.

Taxes and contributions are withheld or collected in advance on estimated
basis. If the amount withheld or collected in advance exceeds the total taxes
and contributions in the final assesment, the difference is returned. An
extra raise of 7.5% is paid on tax refunds. If the amount withheld or
collected does not cover the final taxes and contributions, you are charged
for the difference. An extra charge of 7.5 % is levied on the ammount
exceeding FIM 3000. To avoid additional taxes, tax payers can pay extra
advance at a post office or bank. Extra advance tax for 1992 can be paid
until the end of January 1993.

Below are instructions for completing a tax return on wages and/or salaries in
Finland.

If you have not moved to Finland permanently, the estimated date of depature
from Finland should be stated at the top of the first page of the tax return
form. If you have moved to Finland during 1992, please enter date of arrival
to Finland at the form. In this case do also tell the first municipality of
residence under item "additional information" on page 4 of the form.

Income

Item 2
        Enter taxes withheld on wages in Finland.
        Withholding tax certificates (Ennakonpid{tystodistus) from
        the emplyer must be enclosed to the tax return.

Item 1
        Enter remuneration from your principle occupation.

Item 13
Other wages and salaries

        Enter remuneration from a part-time occupation or
        temporary work. (my understanding is that it means
        second or third job, not your first job if your first job
        is part-time)

Item 14
        Enter income from, for instance, private teaching.

Deductions

Item 50
Trade union membership fees and unemployment fund payments

        A receipt must be enclosed if the fees have not been
        recorded in the withholding tax certificate.

Item 51
Cost incurred in travelling to and from work in Finland.

        Travel expenses from home to the place of employment are
        deductible using the cheapest means of transport. Expenses
        of less than FIM 2000 are not deductible. Expenses in
        excess of FIM 2000 can be deducted up to FIM 16000.

Item 52
Other work-related expenses

        That part of these expenses which exceeds the work-related
        standard expenses deduction is deductible. The work-related
        standard expence deduction is 3% of earned income but not
        more than 2100 and it is calculated and entered by the tax
        authorities. A receipt of the exceeding expenses and an
        explanation of how these are income-related should be enclosed
        to the tax return.

Item 43
Voluntary pension insurence premiums

        Enter the amount paid and enclose the receipts. The maximum
        acceptable is 12% of earned income.

Item 55
Regular allowance to a former spouse

        Allowance sent abroad to support parents, for instance,
        cannot be deducted.

Item 58
Interest

        A statement, together with a receipt of the interest paid,
        must be presented and the purpose of the loan stated. If your
        tax liability in Finland has not been unlimited for the
        entire year, you may deduct only interest connected to income
        or property taxable in Finland. Interest paid on a loan taken
        to purchase furniture or on a study loan are not such
        interest expenses.

Item 59
Deduction for capacity to pay taxes

        This deduction can be granted for a special reason
        affecting livelihood (illness, maintenace liability,
        unemployment). The maximum amount of the discretionary
        deduction is FIM 8000.

Item 64
Deduction for maintenace liability

        This deduction is granted if payment of maintenance is
        based on an agreement in accordance with legislation on
        child maintenance or on a court order (proof of such an
        agreement or court order must be presented). The deduction
        is 1/8 of the maintenance paid, but not more than FIM 450
        per child. It is made from the state income tax.

Other deductions are made by the authorities.

If you consider special provisions
in a Tax Convention can be applied
in your case, please enter your
request under item "Additional information".

PLEASE REMEMBER TO SIGN AND DATE THE TAX RETURN FORM.

----------------------------------END---------------------------------------
Disclamer:
This is posted without the permission of the original author, and on
the purpose of the maximum dissermination of the useful information to the
public.

-------------------------------------------------------------------------
Huachen Pan         ~{EK;*3=~}         ~{6+7=2;AANw7=AA  :ZAKDO7=SP117=~}
-------------------------------------------------------------------------

MY (tommi's) disclaimer, this has been posted without any permission
asked and without any guarantee to be legal, accurate, good, useful
or anything like that. All information is provided as-is and the reader
is fully responsible his or her actions whatsoever. For official information
please turn to your local tax office! Their phone number and addresses must
be found from some good place or otherwise the finnish goverment is a bit
stupid ;-).


Newsgroups: sfnet.keskustelu.foreigners