Double Taxation & Finland

[jh72i]

This is a long shot but worth trying none-the-less because there seem to be some very knowledgeable people around here.....

Basically, I want to know if my wife, as a Finnish resident, earns extra money through employment in Ireland how do I calculate what tax I owe on that money in Finland.

To clarify, she will pay PAYE and PRSI on any Irish earnings in Ireland.

This is a bit hypothetical at the moment but I run a small 1 man company and am thinking of employing my wife to spread our tax burden - i.e. pay her a wage up to the where she would start to enter the higher tax band thus reducing the amount of exposure i have to the upper band. Thing is she also earns a (very small) wage in Finland.

I just want to know if this idea would make sense economically. I know that many countries have a situation where you can have foreign earnings and as long as you are fully tax compliant in the country of earnings there is little or no extra liabilty in country of residence. Or there is a calculation of extra tax due on the difference of tax between the two countries.

I am just finding it very difficult to get/understand information from Finland.


Like I say, a long shot, but if you have any advice I'm all ears.

Thanks

 

[Domo]

Can you confirm that she is in fact tax resident in Finland?
Is she also Irish tax resident?

Where will she carry out the duties of employment for you?

I would need a lot more detail to give you any sort of answer.

 

[jh72i]

Thanks for replying to this Domo and sorry for not picking it up - was away(Finland of course .

To answer your questions:

1. yes, she is tax resident in Finland spends just about the majority of her time there.

2. "duties of employment" - this is an interesting question but the truth is she won't actually do anything but lets say she does the company administration she could do it from either country.

I suppose what I'm looking for is info about a double-taxation treaty and whether Ireland and Finland cooperate. I just cannot seem to find that info anywhere. Even my accountant company cannot help (but they are UTTERLY useless anyway).

One thing to make absolutely clear is that we are not interested at all in doing anything suspect or dodgy. We just want to make the best of the our tax situation - essentially, I earn 95% of the money yet we spend it evenly (mmmmm, I'm being very generous with this statement I can tell you) it just seems rediculous that so much of it would be taxed in the upper band. Also, we need to buy a house but on pretty much a single salary its a real problem.

Any pointers/ideas/etc. would be a great help.