Finland Tax Agency Announces Reduction in Withholding Tax Rate for Specific Key Employees

The Finnish Tax Administration Dec. 8 announced the reduction, to 25 percent from 32 percent, in the withholding tax rate for key employees coming to Finland, for salaries paid on or after Jan. 1, 2026. The announcement includes that: 1) these individuals can apply for withholding at source as a key employee if they work in Finland in a position requiring special expertise and meet other criteria; 2) tax cards previously issued to key employees displaying the 32 percent rate in force until Dec. 31 can be valid for up to 84 months without being renewed if circumstances don’t change, ...