Tax Residence Status and Social Security
This case is essentially about a UK resident moving permanently to Finland, and where, first of all, his tax residence and related tax obligations amongst two jurisdictions, Finland and the UK, had to be extensively reviewed and communicated to the authorities. Secondly, there are rather detailed social security related obligations to be accounted for in connection with the matter towards a number of authorities.
Tax Residence Status and Social Security
This case is essentially about a UK resident moving permanently to Finland, and where, first of all, his tax residence and related tax obligations amongst two jurisdictions, Finland and the UK, had to be extensively reviewed and communicated to the authorities. Secondly, there are rather detailed social security related obligations to be accounted for in connection with the matter towards a number of authorities.
Tax Residence Status and Social Security
This case is essentially about a UK resident moving permanently to Finland, and where, first of all, his tax residence and related tax obligations amongst two jurisdictions, Finland and the UK, had to be extensively reviewed and communicated to the authorities. Secondly, there are rather detailed social security related obligations to be accounted for in connection with the matter towards a number of authorities.
This case was about a private individual in a matter concerning readjustment of tax residence simultaneously in two jurisdictions, Finland and the UK, as a consequence of initially unplanned permanent stay in Finland.
The taxable income subject to assessment included various items of income accrued based on certain UK employer originated payments, as allocable amongst the two jurisdictions and as based on specific facts and circumstances and the local legislation in said jurisdictions. Accordingly, there were three procedures in parallel to be administered: (i) request for rectification in Finland, (ii) preparing and filing tax return for open tax year in Finland, and (iii) the readjustments requested in the UK. Further, such change in residence status required very thorough review and implementation of social security related obligations, addressed with both the employer and the employee.
The case is particularly challenging with its ambiguous itemized details as it required retroactive application of the Finnish and the UK tax legislation, including the tax treaty. In addition, the tax proceedings were carried out simultaneously in two dissimilar jurisdictions in cooperation with the UK tax advisors. Further, certain very detailed social security related matters attached to the case were very challenging, given also the specifics related to Covid and Brexit.
This case was about a private individual in a matter concerning readjustment of tax residence simultaneously in two jurisdictions, Finland and the UK, as a consequence of initially unplanned permanent stay in Finland.
The taxable income subject to assessment included various items of income accrued based on certain UK employer originated payments, as allocable amongst the two jurisdictions and as based on specific facts and circumstances and the local legislation in said jurisdictions. Accordingly, there were three procedures in parallel to be administered: (i) request for rectification in Finland, (ii) preparing and filing tax return for open tax year in Finland, and (iii) the readjustments requested in the UK. Further, such change in residence status required very thorough review and implementation of social security related obligations, addressed with both the employer and the employee.
The case is particularly challenging with its ambiguous itemized details as it required retroactive application of the Finnish and the UK tax legislation, including the tax treaty. In addition, the tax proceedings were carried out simultaneously in two dissimilar jurisdictions in cooperation with the UK tax advisors. Further, certain very detailed social security related matters attached to the case were very challenging, given also the specifics related to Covid and Brexit.
This case was about a private individual in a matter concerning readjustment of tax residence simultaneously in two jurisdictions, Finland and the UK, as a consequence of initially unplanned permanent stay in Finland.
The taxable income subject to assessment included various items of income accrued based on certain UK employer originated payments, as allocable amongst the two jurisdictions and as based on specific facts and circumstances and the local legislation in said jurisdictions. Accordingly, there were three procedures in parallel to be administered: (i) request for rectification in Finland, (ii) preparing and filing tax return for open tax year in Finland, and (iii) the readjustments requested in the UK. Further, such change in residence status required very thorough review and implementation of social security related obligations, addressed with both the employer and the employee.
The case is particularly challenging with its ambiguous itemized details as it required retroactive application of the Finnish and the UK tax legislation, including the tax treaty. In addition, the tax proceedings were carried out simultaneously in two dissimilar jurisdictions in cooperation with the UK tax advisors. Further, certain very detailed social security related matters attached to the case were very challenging, given also the specifics related to Covid and Brexit.
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© 2024 Weckström Attorneys Ltd.
Bernhardinkatu 5 A 5
00130 Helsinki, Finland
+358 40 523 2020
office@weckstromattorneys.com
© 2024 Weckström Attorneys Ltd.