Finland

Individual - Foreign tax relief and tax treaties

Last reviewed - 30 June 2020

Foreign tax relief

Finnish residents can obtain credit for final income taxes paid abroad against income taxes payable in Finland on the same income. However, other than foreign national (federal) taxes, other taxes cannot be credited in Finland unless they are covered in an appropriate tax treaty. In some tax treaties, the exemption with progression method is used instead of the credit method in eliminating double taxation, either as a main rule or for some income types. Also, foreign advance taxes can be credited, but the credit needs to be finally confirmed when the final amount of foreign taxes is available, and a correction of assessment may be needed. Any unused foreign tax credits can be carried forward for five years.

Tax treaties

Double tax treaties (DTTs)

Finland has concluded a tax treaty for avoidance of double-taxation and the prevention of fiscal evasion with respect to taxes on income and on capital with the following countries:

Argentina Egypt Lithuania Slovenia
Armenia Estonia Luxembourg South Africa
Australia Faroe Islands Macedonia Spain
Austria France Malaysia Sri Lanka
Aruba Georgia Malta Sweden
Azerbaijan Germany Mexico Switzerland
Barbados Greece Moldova Tajikistan
Belarus Guernsey Montenegro* Tanzania
Belgium Hungary Morocco Thailand
Bermuda Iceland Netherlands Turkey
Bosnia and Herzegovina* India Netherlands Antilles Turkmenistan
Brazil Indonesia New Zealand Ukraine
British Virgin Islands Ireland, Republic of Norway United Arab Emirates
Bulgaria Isle of Man Pakistan United Kingdom
Canada Israel Philippines United States
Cayman Islands Italy Poland Uruguay
China, People Republic of Japan Portugal** Uzbekistan
Costa Rica Jersey Romania Vietnam
Croatia* Kazakhstan Russia (Former) Yugoslavia
Cyprus Korea, Republic of Serbia* Zambia
Czech Republic Kyrgyzstan Singapore
Denmark Latvia Slovak Republic

* The treaty with former Yugoslavia is to be regarded as remaining in force.
** The old treaty with Portugal has been terminated and is not applicable as of 1 January 2019. The new treaty is not in force; consequently, Finland has no applicable tax treaty with Portugal.

Social security agreements

European Commission (EC) regulations 883/2004, 1408/71, and 574/72 apply to EU/EEA member states:

Austria Greece Norway
Belgium Hungary Poland
Chile Iceland Portugal
Cyprus (the Greek part) Italy Romania
Czech Republic Latvia Slovakia
Denmark Liechtenstein Slovenia
Estonia Lithuania Spain
Finland Luxembourg Sweden
France Malta United Kingdom
Germany Netherlands

Switzerland: The aforementioned regulations are applicable on the basis of the agreement on free movement between Switzerland and the EU.

Additionally, Finland has concluded social security agreements with Australia, Canada, Chile, China, India, Israel, Quebec, South Korea, and the United States.