Ennakkoperintä (Tax Withholding)

Detailed explanation

In Finland, taxes are not paid as a single annual payment. Instead, your employer withholds taxes from each salary payment based on the rate specified on your verokortti (tax card). This rate is calculated by Vero (the Finnish Tax Administration) based on your estimated annual income, applicable deductions, and tax rates for your municipality.

The tax card includes two rates: a base rate for income up to your estimated annual earnings and a higher rate (typically 40% or more) for additional income above that threshold. This prevents undertaxation if you earn more than expected. At the end of the year, Vero reconciles what was withheld against what was actually owed, resulting in either a refund or a residual tax bill.

For self-employed individuals and entrepreneurs, the equivalent is ennakkovero (prepaid tax), which is paid in installments directly to Vero based on estimated business income.

How it affects expats

• •Tax card essential: Get your verokortti from Vero as soon as you start working

• •without it, your employer must withhold 60%

• •Update when needed: If your income changes significantly, request a new tax card to avoid large refunds or residual tax

• •First year adjustment: Your first tax card may not perfectly estimate your income

• •review and adjust if necessary

• •Multiple employers: If you have multiple income sources, ensure your tax card accounts for total expected income

• •Online management: You can order and modify your tax card through OmaVero at vero.fi

Key details

• •Base rate: Calculated individually based on expected income and deductions

• •Additional rate: Applied to income exceeding the estimated amount, typically 40%+

• •Without tax card: Employer withholds 60% as a default

• •OmaVero: Order your tax card online at vero.fi

• •available in English

• •Ennakkovero: Prepaid tax for self-employed, paid in installments

Related terms

• •Veroprosentti (Tax Rate) — your personal tax percentage

• •Veronpalautus (Tax Refund) — annual tax reconciliation and refunds

• •OmaVero — Vero's online tax portal