International income taxation

Photo: Maskot / Gorilla.

International income taxation is regulated by the Finnish Income Tax Act, Business Tax Act, Act on the Taxation of Shareholders in Controlled Foreign Companies (CFCs), Act on the Taxation of Non-residents' Income and Capital, Act on Elimination of International Double Taxation, and Act 1551/1995 governing the income tax of foreign key employees.

Persons and companies 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. In that case, Finland is considered to be the source state. International tax treaties may limit the taxability of income in accordance with national legislation. The unlimited and limited tax liabilities are key issues in national legislation when the taxability of income is determined in situations that cross national borders.