Finland

TCP does not recommend that contractors are employed in Finland by either their own PSC or are registered as self-employed. The Finnish authorities would consider both as having created a “permanent establishment” by having moved their centre of economic interest and as such be liable not only for Finnish corporate tax but also personal Finnish tax and Finnish N.I.

All contractors lent out in Finland are subject to Finnish tax from day one. TCP is able to employ and payroll contractors of any nationality in Finland. E.U. but non UK individuals must be employed on TCP OY’s Finnish payroll with Finnish tax and social security contributions to be deducted. Church tax is an optional additional deduction.

UK individuals can either be employed fully on the TCP’s Finnish payroll or can remain on TCP’s UK payroll. UK NI negates the need to pay Finnish social security contributions provided an E 101 certificate has been issued.

However Finnish tax is due to be withheld from day one of the contractor being lent out and where this is higher than the UK wage tax, the difference will be paid to the Finnish authorities.