Do you live in another Nordic country and own shares in Finland?
Do you live in another Nordic country and own shares in a Finnish company? The following information only applies to income from these shares.
Dividend from shares
Taxation in Finland
Receipts of dividend from Finland are subject to Finnish final tax at source of 15 %. The payer withholds this tax at payment. No income tax return has to be filed in Finland for a payment subject to tax at source.
If more than 15 % has been withheld as tax in Finland, please contact the payer - e.g. the bank that has relayed the payment to you - to make arrangements for refunding the excessive amount to you.
Taxation in your country of residence
You should declare the Finland-sourced dividend income and the tax withheld in Finland in the income tax return that you file in your country of residence. This income is subject to tax not only in Finland, but also in your country of residence. For avoiding double taxation, the Finnish tax is deducted from the tax you pay on this income in country of residence.
Capital gains derived from selling shares
If you have never lived in Finland, your capital gains from selling shares in a Finnish company are not subject to tax in Finland. (There are different rules concerning shares in housing companies)
If you are a Finnish citizen and continue to be a Finnish tax resident, the capital gain may be taxable not only in the Nordic country where you are living, but also in Finland. In this case, you are expected to fill out tax form 9 to report your capital gains in Finland and write the relevant amounts in the lines of the Pre-Completed Tax Return form according to the instructions provided. The tax rate is 30 or 34 %.
Declare the profit that you made in the income tax return of your country of residence. For avoiding double taxation, the tax payable in Finland is deducted from the tax you pay on this income in your country of residence.