Lähdeveron

Lähdeveron, or withholding tax, is a tax collected at the source of income in Finland. It applies to certain payments made by Finnish payers to recipients, particularly non-residents, to ensure taxation of income earned from Finnish sources and where the recipient’s tax residence is outside Finland. The withholding agent is usually the payer who must withhold the tax and remit it to the Finnish Tax Administration (Verohallinto).

Types of income commonly subject to lähdevero include dividends, interest, and royalties paid from Finnish sources. Depending on the law and any applicable international agreements, other payments to non-residents may also be covered. The rate of lähdevero varies by income type and may be reduced or exempt under domestic rules or double taxation treaties. Treaty provisions can provide reduced rates or exemptions for residents of treaty countries.

The withheld amounts are typically remitted to the tax authority, and in some cases the recipient can reclaim excess withholding or claim relief through the normal tax return process, depending on status and treaty provisions. In practice, lähdevero serves as a mechanism to secure taxation of cross-border Finnish-source income and to simplify collection for the tax administration and payers.

See also: Taxation in Finland; Withholding tax; Double taxation treaty.