Finland Tax Agency Updates Guidance on Taxation of Compensation, Benefits Upon Employment Termination

The Finnish Tax Administration Aug. 5 updated Guidance No. VH/3188/00.01.00/2022, on the taxation of employment benefits and compensation received at the time of termination. Topics covered include: 1) payments to employees during the notice period, including variable working hours; 2) compensation payments based on a non-competition agreement; 3) the payment of tax-free compensation to employees for an employer failing to cooperate; and 4) international situations, including the six-months rule for taxpayers working abroad, the effect of tax treaties, and limited performance payments to taxpayers. [Finland, Tax Administration, 08/05/22]

Reference:
View Updated Guidance No. VH/3188/00.01.00/2022.