lähdeverotettavia

Lähdeverotettavia refers to income that is subject to withholding tax at the source in Finland. This means that the payer of the income, such as an employer or a financial institution, is responsible for deducting the tax directly from the payment before it is transferred to the recipient. The deducted tax is then remitted to the Finnish Tax Administration (Verohallinto).

The purpose of source taxation is to ensure that taxes on certain types of income are collected efficiently and promptly. It is commonly applied to income earned by non-residents who are not domiciled in Finland but derive income from Finnish sources. Examples of such income include dividends, interest, royalties, and wages paid for work performed in Finland.

For residents of Finland, the concept of lähdeverotettavia is less common as their income is typically taxed through a progressive income tax system where the individual is responsible for declaring their income and paying taxes annually. However, certain types of income for residents, like some capital gains or specific fringe benefits, can also be subject to withholding tax.

The rates and rules for source taxation are determined by Finnish tax law and international tax treaties. Non-residents may be eligible for reduced withholding tax rates or exemptions based on applicable tax treaties, which aim to prevent double taxation. Individuals and entities subject to source taxation should consult the Finnish Tax Administration or a tax professional for specific guidance on their obligations and potential relief.