Tax Treaties

Finland has concluded tax treaties with almost 50 countries. If no tax treaty has been concluded, relief from double taxation can be achieved only by applying domestic laws based on ordinary credits limited to national taxes.

With the exception of a few older treaties, the treaty provisions are based largely on the Organisation for Economic Co-operation and Development (OECD) model treaty. The withholding taxes on dividends, interest and royalties that Finland is allowed to levy under various treaties are listed in Appendix 13, page 91. Finland's treaties may deviate from the OECD model because Finland has reserved the right to tax industrial royalties at source. Several treaties reflect this position by preserving a 5% tax on such royalties. Finland has also reserved the right to tax gains from the transfer of shares in residential housing companies and other real estate companies.