If your company is ready to cross borders into Finland, you need to be prepared to handle everything from payroll to legal matters. With a population of only 5.5 million, finding skilled...
Read MoreIf your company is ready to cross borders into Finland, you need to be prepared to handle everything from payroll to legal matters. With a population of only 5.5 million, finding skilled workers in Finland that can help grow your business can be difficult. Once you find them, you must make sure you meet all the country's laws and regulations related to your Finland payroll options. No matter what you decide, Globalization Partners is here to help.
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If your company is ready to cross borders into Finland, you need to be prepared to handle everything from payroll to legal matters. With a population of only 5.5 million, finding skilled workers in Finland that can help grow your business can be difficult. Once you find them, you must make sure you meet all the country’s laws and regulations related to your Finland payroll options. No matter what you decide, Globalization Partners is here to help.
Finland’s corporate income tax rate is 20%. Companies that import goods are also subject to a sales tax known as VAT. The general VAT rate is 24%, but this percentage changes depending on what you’re importing. Businesses in Finland must also apply a 15% to 20% withholding tax on payments to foreign corporations and 30% on payments to non-resident individuals.
When you set up your Finland payroll, you must make sure to follow individual tax laws for employees. Finland operates under a progressive tax scheme between 6.5% and 31.75%. The country also has a robust social insurance system that includes residence- and work-based benefits such as family benefits, financial aid for students, and health insurance.
Trying to expand your business into Finland and learn all the country’s employment laws can feel daunting. However, you have a variety of Finland payroll options at your disposable to help you make the most informed decision. Choose between:
Once you decide on a payroll option in Finland, you’ll need to set up your system. All new employees must provide personal information such as their tax code number, bank account details, and pension details to set up Finland payroll. You’ll also need to register yourself as an employer if you pay wages or salaries to at least two employees regularly or at least six employees at the same time temporarily. You must withhold taxes on these wages based on your employees’ tax card.
Entitlement and termination terms depend on whether the dismissal was by the employer. The country has no statutory rules on counter-notice if the employer dismisses an employee, and an employer can terminate a relationship with a valid reason. The notice period varies based on the employee’s length of employment.
When going through your Finland payroll options, you’ll see numerous benefits by choosing Globalization Partners. Contact us today to learn more.
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