Do you live in Finland and work on board a ship that is registered in another Nordic country and operated in international traffic?
This applies to persons who live in Finland and work on board a ship that is registered in another Nordic country and operated in international traffic. The information applies only to taxation of such income.
In this context, international traffic means transport by ship, except when the ship is operated solely between places in one Nordic country.
Taxation in another Nordic country
Your pay may be taxed in the Nordic country in which the ship is registered.
When you work on board a ship that is chartered on a so-called bareboat basis by a shipping company in another Nordic country, you may be taxed in the country where the shipping company is resident.
Taxation in Finland
The income earned on a foreign ship and taxes paid shall be included on the Finnish tax return. You should also fill in form 16 and tick a box for seafarer's income to get a seaman's deduction. Expenses related to seafarer's income (e.g. labour fees and travelling expenses) should not be reported, as they are included in the seaman's deduction.
An income abroad to be defined tax free in accordance with the six-month rule of Income Tax Act (77§) is usually not applicable to the work on board a foreign ship, and the income is taxed in Finland the same way as income earned on board a Finnish ship. If your income is taxed in the other Nordic country, you may claim the foreign tax to be credited. The amount of tax credit cannot however be more than the tax to be paid in Finland on the same income.
In order the income to be defined tax free in Finland in accordance with the six-month rule, it is required for example that you do not stay in Finland for more than six days a month in average during the work abroad.
A part of a day in Finland is regarded as a whole day in Finland. Also the time the ship is in a Finnish harbour for loading or unloading is considered as time spent in Finland. If you will claim the six-month rule to be applied, you should specify on form 16 the working period and dates when you came to and left from Finland.
You can find information about taxation of income earned on board a ship under a contract on the Danish or Norwegian continental shelf under the heading "Do you live in Finland and work on the Danish or Norwegian continental shelf?".
There are special rules about where you are to be insured. For more information you should contact ETK in Finland (www.etk.fi) or the social security authorities in the country where the ship is registered.