Contracting in FINLAND with WhiteNovember

Transcription

1 Contracting in FINLAND with WhiteNovember 1

2 Contents About us General tax information in Finland What to do when you first come to Finland Public Transport Accommodation Why White November International Contracting?

3 About us White November International Contracting (WNIC) work with international contractors across the EU/EEA and help each contractor to get better retention rates for the contracts they are working on, whilst being wholly compliant in their country of operation. White November International Contracting head office is based in Malta. Malta has an extremely attractive tax refund system approved by the EU. Local company, financial, and tax legislation are founded on UK law. From our head office in Malta, we are currently registered as employers and operate our solutions across the following countries within the EU/EEA: Instructions for Employees Working in France Norway Sweden Belgium Denmark France Ireland Germany Finland The Netherlands Luxembourg Czech Republic. 3

4 General tax information in Finland Progressive tax rate When you start working in Finland for more than 6 months and whether you are a member of an EU/EEA country, you will automatically be put on a progressive tax rate. To register for progressive taxation, you must visit your local tax office and ask for a non-resident's tax card, which you must then give to your employer, so they can pay the correct amount of taxes for you. When you fill out your application form, you must provide proof of all your Finnishsourced earned income, your taxable earned income in your country of residence, and all your other deductions from them. Finland will only tax your income from Finnish sources, but your taxable income from your country of residence has an increasing effect on your taxation in Finland. The progressive tax on earned income is always calculated by using the state income tax table and the average rate of municipal income tax. General deductions including commuting expenses and the expenses for production of income. Actual tax rates depend on the amounts of income and deductible expenses. Tax at source (flat rate 35%) If your contract in Finland will be for less than 6 months you will be automatically be put on a 35% flat tax rate. If you are member of an EU/EEA country or you are from a country that has a bilateral treaty agreement with Finland, you can apply for the progressive tax rate as stated above. You can inform the tax office that your earned income to be taxed under the progressive scale instead of the 35% flat tax rate. You will need to provide proof from your home country that you have been pay your tax and social security contributions. You will need to provide your tax certificate. Unfortunately, if you are not a member of another European country, then you will be taxed at source of a flat rate of 35%. 4 4

5 What to do when you first come to Finland When you arrive in Finland you must go to your local tax office (Verotoimisto) to request a Personal Identity Code which will also be your tax number. Get a tax card To find your local tax office please see the link and translate the page into English. Personal Identity Codes/tax numbers are given to all foreigners regardless of how long they stay in Finland. You must personally go to the tax office and make sure you take your: Valid passport Employment contract Employer Organization Number You will receive your tax card whilst at the tax office this will detail your monthly tax and social security expenses. 5 5

6 Registering at the local Registrar s Office Applicable if you will be staying in Finland for more than a year Under Finnish law, a foreign employee is required to register the same information as Finnish citizens if you will staying/working in Finland for at least one year. You will need to register yourself at your local registry office. Your information will be used, in the organization of elections, for taxation purposes, healthcare, juridical administration, and statistical purposes. Once you have been registered you will receive a certificate of registration. What to take with you? You must personally go to the tax office and make sure you take your: - Valid passport - Employment contract - Employer Organisation Number You will receive your tax card whilst at the tax office this will detail your monthly tax and social security expenses.. Please see link to find your local registrar s office 6 6

7 Public Transport All Finnish cities and towns have a regular and consistent bus network, with departures every 10 to 15 minutes in the main cities, every 30 to 60 minutes in the smaller cities. Fares are relatively cheap compared to most EU countries. They are roughly around 2.50 to Do note that Helsinki is the only city that has a metro and tram service. These are explained in more detail below. You can use to plan your journey. It will tell you the quickest route via walking and via the use of public transport. It will also tell you which bus/train or tram to catch and how long the journey will take. Tram Service (Helsinki only) Trams are the main form of public transport in Helsinki as they are the most efficient and regular mode of transport. The HKL Tram Unit operates the tram transport which is organised by the Helsinki Region Transport (HSL). The easiest way to pay for your journey is by travel card or by mobile phone, and it is also cheaper than a regular single ticket. If you have a travel card, you can load either a season ticket or a value ticket. The link below will give you all the details of routes, timetables and fees as well as how to apply for the travel card 7

8 Metro Service (underground service, Helsinki only) Trains The Metro is the fastest and most frequently operated modes of transport in Helsinki. The Metro is very easy to use, there are only two directions, that only go east and to the west of the city. The track divides into two tracks in Itäkeskus. The trains travel to Mellunmäki and Vuosaari in turns. The Metro is the quickest way to travel throughout the week, on weekends and at night. You can also find the time table and routes on. The fares for the metro are same as any public transportation fares in Helsinki. The company Valtion Rautatiet runs the Finnish trains service which is a fast, efficient service, with prices roughly the same as the bus services. Valtion Rautatiet s website has an extensive timetable of information for its users. Major stations have a VR office which you can purchase your travel tickets and also they have ticket machines. Tickets can also be purchased online, where you'll also find discounted advance fares.. You can also board the train and pay the conductor, but you may have to pay a small penalty if the station where you boarded already had ticket-purchasing office or ticket machine. Fares vary slightly depending on which train service you use, when planning your journey make sure you do some research to get the best deal. 8

9 Travel Card One card for all journeys The Travel Card is an easy and costeffective payment option. It is valid on all public transport in the major cities such as Helsinki, Espoo, Kauniainen, Vantaa, Kerava and Kirkkonummi. Also the travel card is accepted on buses, commuter trains, the Metro, trams and the Suomenlinna ferry. It is highly recommended to purchase a travel card if you will be using public transport on a regular basis. There are two types of Travel Cards which you can choose from depending how often you will use the public transport services. There is small 5.00 fee to purchase a card for the first time. A personal Travel Card This can only be used by the person who purchased the card. The personal travel card is the cost effective option, as the HSL area municipalities and neighbouring municipalities fund the public transport journeys of their residents. You can buy Travel Card season tickets that are cheaper than general or multi-user season tickets A multi-user Travel Card This is well-suited for joint use, for example, for companies and families as well as for residents of other municipalities. A multi-user Travel Card can be used by anyone holding the card who belongs to the same customer group. To apply for the travel card you can either from a sales point or a service point. 9 9

10 Please see the links of recommended estate agents: Accommodation As in most major cities in all the EU the prices for renting an apartment is extremely high for little space. Most of these apartments would not have furniture either, that is why it is recommend to rent a furnished apartment known as a serviced apartment. There some Finnish agencies who specialize in furnished apartments o ('serviced apartments'), making your property search a lot less stressful. They do have the benefit of being available 'instantly'. You can have a contract for just one day this can be extended to months. As you will be staying longer than a month prices can often be negotiated. Serviced apartments are particularly good for contractors who will be staying in the country for more than a month. They are a lot less expensive than staying in a hotel. These apartments are usually very close to city centres, thus has easy access to public transport. They are generally in good condition, furnished and decorated. These apartments will include utilities, internet access, and everything you would normally find in an apartment. Some apartments may include additional services such as cleaning and laundry. 10

11 Why White November International Contracting? White November Group and its sister companies have been in operation for over a decade. White November is a management consultancy specialising in bespoke corporate and tax efficient solutions for high net worth individuals and small companies. In 2011, White November was approached by a group of specialist contractors whom were based in Scandinavia for a global oil and gas entity. These contractors were high earners and felt uncomfortable with the nature of solutions being offered by traditional umbrella companies both in terms of compliance and reputations. This same group of contractors approached WN with a mandate to provide a bespoke solution that allowed them to work in Scandinavia in a tax compliant and fully insured manner, while optimising their retention of remuneration. It was out of this mandate that our Partnership Solution was created. In servicing these contractors our researched showed that the European Contracting industry was poorly serviced. Many competitors were offering opaque solutions which were not tax compliant for the contractors and reputationally risky for agencies and end clients. We noticed a market gap for a high end provider to provide compliant solutions that are tax efficient and offer long term orientated options and strategies to contractors. Following much demand and success, White November s International Contracting (WNIC) became a permanent division within the group. While initially only serving the top 5% of earners within the Scandinavian contracting market, WNIC has expanded to provide solutions in ten European jurisdictions and now offers both solutions for contractors at all levels of remuneration. Disclaimer: Whilst every effort has been made to ensure that the details contained herein are correct and reflect the conditions at the time of publishing (December 2016), it does not constitute legal or professional advice. White November International Contracting does not accept responsibility, legal or otherwise, for any errors or omissions. 11

12 Tel.: Web: Malta Office Level 8, The Plaza Commercial Centre Bisazza Street SLM1640 Sliema Malta 12