Double Tax Treaties in Finland, Taxes in Finland
Double Taxation Treaties in FinlandUpdated on Friday 05th June 2015
The double tax treaties signed by Finland along the years can be found on the Finnish Ministry of Justice FINLEX website database in an electronic version. The originals of these documents can be found in the Treaty Series of the Statute Book.
Finland is signing double tax treaties especially with the countries with a tax system much alike the Finish tax system.
Usually the double tax treaties are signed between states in order to avoid the taxation of the profits and incomes in Finland and in the country of origin of the shareholders. Until now, Finland has signed treaties with 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. Many drafts are waiting to be ratified.
The dividends, interests and royalties are also subject to the double tax treaties. Their rates can be minimized or even exempt. Usually, the withholding taxes on dividends, interests and royalties paid to nonresidents are 24.5%. The minimized taxes are situated between 5%-15%.
The withholding tax on dividends, interests and royalties with some countries is inexistent: France, Ireland, United Kingdom and the United Arab Emirates.
The inheritances and gifts are also subject to the special provision of certain treaties. The usual domestic tax can vary from 10 % to 32 %, with a minimum inheritance taxation of 20000 EUR and a 4000 EUR gift tax.
The OECD model, after which the majority of the treaties are elaborated are containing provisions regarding the tax information exchange. This way, certain entities can be checked in their countries of origin to see if are indeed paying taxes there and have the right to request a tax exemption or a refund.