Getting started as a freelance translator in Finland: bureaucracy and taxes Thread poster: Sergei Oleinikov
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I have cumulatively spent a few hours browsing Vero (the Finnish tax authority) and several on-topic websites, resulting in having some of my questions answered, but also raising new ones. Particularly, there's some blurring for me between freelancing and self-employment regulations. Finally, I decided to simply ask for advice from people with first hand experience. I would really appreciate it if someone were to answer a few of my questions. For clarity: I'm a resident of Finland, I have a Finn... See more I have cumulatively spent a few hours browsing Vero (the Finnish tax authority) and several on-topic websites, resulting in having some of my questions answered, but also raising new ones. Particularly, there's some blurring for me between freelancing and self-employment regulations. Finally, I decided to simply ask for advice from people with first hand experience. I would really appreciate it if someone were to answer a few of my questions. For clarity: I'm a resident of Finland, I have a Finnish personal identification number and a tax card, but no Kela card. My questions so far:
1) I would need to order a "freelancer tax card" to replace my current one, correct?
2) Is registering for tax prepayment necessary or just optional?
3) Which forms exactly would I be using for reporting my income? I'm assuming different forms for domestic income and income from abroad?
4) What are the implications of registering for VAT once you hit the earnings threshold, does it change the structure of your operation in any way other than you having to charge VAT for your services where applicable?
I would like to thank everyone for your advice in advance! I would likely be forced to work through an invoicing firm if I don't figure this out. ▲ Collapse
| | | | Sheila Wilson 
Spain
Local time: 08:57
Member (2007)
English
+ ...
| Income source | Mar 27, 2020 |
I could mark Finland on a map, but that's the extent.of my knowledge. However, there's one of your questions that I've heard raised time and again from freelancers based all over the place, and the answer is always the same:
Sergei Oleinikov wrote:
3) Which forms exactly would I be using for reporting my income? I'm assuming different forms for domestic income and income from abroad?
The source of our income as translators is almost always our registered business address, I.e. domestic income. Our clients at the other end of emails or phone calls can be anywhere in the world without it being referred to as income from abroad. Different rules may apply if we travel to the client's office abroad and do the work there -- I'm not sure. And different rules would certainly apply if we accepted any sort of employment contract with a client in another country.
HTH
| | | | Sergei Oleinikov
Finland
Local time: 10:57
English to Russian
+ ...
TOPIC STARTER | Business registration and employment status | Mar 28, 2020 |
Sheila Wilson wrote:
The source of our income as translators is almost always our registered business address.
Thank you for the reply! But this also raises another question: is this also the case if you aren't registered as a business entity (sole trader)? Because I am not — is it recommended I be? Are the users of this website mostly freelancers or self-employed, for that matter, and what are the main differences between the two in the context of operation and taxation, if any? I've read into it, and it seems that the way states distinguish between the two statuses in the aforementioned context differs by country, so I realize that not everyone's experience can be relevant for me here in Finland.
| | | | Heinrich Pesch
Finland
Local time: 10:57
Member (2003)
Finnish to German
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| Simple thing | Mar 28, 2020 |
I'm freelancing since 2001 and always found Finnish tax authorities very helpful and easy to approach. Yearly I spend about 5 hours dealing with tax related issues. I'm alvi-velvollinen (VAT-registered), so at the end of each quarter I enter online my spending on business related VAT and the VAT I got from domestic business (99 % of my income is from outside Finland), and either pay the amount due are find the overpaid amount a few days later on my account.
Monthly I report the income from... See more I'm freelancing since 2001 and always found Finnish tax authorities very helpful and easy to approach. Yearly I spend about 5 hours dealing with tax related issues. I'm alvi-velvollinen (VAT-registered), so at the end of each quarter I enter online my spending on business related VAT and the VAT I got from domestic business (99 % of my income is from outside Finland), and either pay the amount due are find the overpaid amount a few days later on my account.
Monthly I report the income from EU partners. And once a year I enter my turnover and reductions and I'm done. It all is done online. Save the receipts for 7 years in case someone wants to see them. This has not happened to me yet.
And of course you have to pay advance tax according to your prediction for the year in advance. Tax is paid 6 times, February, April etc. at the 23. If you notice you guessed wrong and your income will be much higher or lower, you can anytime change this and will get a new bill with higher or lower amount to pay.
If you make a mistake or if something is missing they will send you a notice both on paper and online. You can also phone and talk to a person. A few years ago I missed the deadline for the monthly declaration and had to pay a fee.
[Bearbeitet am 2020-03-28 08:14 GMT] ▲ Collapse
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Heinrich Pesch
Finland
Local time: 10:57
Member (2003)
Finnish to German
+ ...
| Sheila Wilson
Spain
Local time: 08:57
Member (2007)
English
+ ...
| These things vary so much | Mar 28, 2020 |
Sergei Oleinikov wrote: Sheila Wilson wrote:
The source of our income as translators is almost always our registered business address. Thank you for the reply! But this also raises another question: is this also the case if you aren't registered as a business entity (sole trader)? Because I am not — is it recommended I be? Are the users of this website mostly freelancers or self-employed, for that matter, and what are the main differences between the two in the context of operation and taxation, if any?
In the UK, where I'm from, you don't have to register at all -- you just pay tax and soc sec as a self-employed person. In France and Spain, where I've lived and worked, you have to register before you start working. In the UK and France, you don't have to collect VAT; in Spain, nobody is allowed not to (except that VAT doesn't apply in the Canary Islands, where I live).
AFAIK, none of them distinguish at all between freelance and self-employed. I'm both -- a self-employed person working on a freelance basis.
I'll hand over to Heinrich now. He'll be able to help far more  .
| | | | Sergei Oleinikov
Finland
Local time: 10:57
English to Russian
+ ...
TOPIC STARTER
Heinrich Pesch wrote:
When I started out in 2001 I got much help from local officials, they are now called TE.
Thank you for your reply, and thank you for reminding me of TE-palvelut. I think it's probably best to direct my questions there, since answering such is actually part of their job and they most certainly have the related information.
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