FI SV EN

International income taxation

Photo: Maskot / Gorilla.

International income taxation in Finland is governed by the following legislation: the Income Tax Act; the Act on the Taxation of Business Income; the Act on the Taxation of Shareholders in Controlled Foreign Companies (CFCs); the Act on the Taxation of Non-residents' Income and Capital; the Act on Elimination of International Double Taxation; and the Act  on Income Taxation of Foreign Key Employees.

Individuals and businesses with unlimited tax liability in Finland are liable for tax on all of their income, regardless of whether the income is received from Finland or another country. Parties with limited tax liability only pay taxes in Finland on income received from Finland, i.e. where Finland is considered to be the source state. International tax treaties may limit the extent to which income is taxable under national legislation. In national legislation, the concepts of unlimited and limited tax liability are central for determining the taxability of income in situations where national borders are crossed.