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Company Formation Finland

Double Tax Treaties in Finland

Updated on Tuesday 27th August 2013

Argentina, Armenia, Australia, Azerbaijan, Austria, Barbados, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, France, Georgia, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Kyrgyzstan, Lithuania, Latvia, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Morocco, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, United kingdom, Ukraine, United Arab Emirates, United States of America, Uzbekistan, Vietnam and Zambia are the countries which have signed double tax treaties with Finland over the years.

The necessity of signing these treaties occurred after seeing that the incomes earned by a company with foreign capital were taxed in Finland and also in the foreign company.

Beside the exemption granted to the incomes, the treaties signed with Finland also stipulate special withholding taxes for interests, dividends and royalties that are paid by the above countries. These rates are lower than the applicable taxes paid by the non treaty countries and range 0% and 15%. The taxes paid by the non treaty countries reach 28 % for dividends, interests and royalties.

Certain countries have signed treaties which assure 0% withholding taxes on dividends, interests and royalties: France, Ireland, United Kingdom and the United Arab Emirates.

Besides the withholding taxes on interests, dividends and royalties, Finland has signed tax treaties regarding the inheritances and gifts. Usually this tax is smaller than the domestic tax which can vary from 10 % to 32 %, with a minimum inheritance taxation of 20.000 EUR and a 4000 EUR gift tax.

As a general rule, Finland is signing contracts mostly with the countries which have tax system much alike the Finish tax system. The model use to elaborate these treaties is the OECD model.

The treaties can be found in the electronic version in the FINLEX website database, maintained by the Ministry of Justice. The only inconvenient is that the texts of the treaties are written in Finish.

The original version of the treaties can be found under the Treaty Series of the Statute Book.

 

Partner: Firmengründung in FinnlandРегистрация компаний Финляндия

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