Finland

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:

Social security agreements

European Commission (EC) regulations 883/2004, 1408/71, and 987/2009 apply to EU/EEA member states.

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

The aforementioned regulations are applicable on the basis of the agreement on trade and cooperation between the United Kingdom and the European Union.

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