Workforce Payments Guide Finland

Last updated: Dec 31, 2023

Currency
Euro (EUR)
Payroll Frequency
Monthly
Capital
Helsinki
Fiscal Year
1 January - 31 December
Employer Taxes
27.69% - 29.24%
Employee Costs
11.79%
Central Bank
Bank of Finland
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3rd Party Payments

Authority  Payment Frequency  Due Date  Payment Method 
Pension Insurance (TyEL)  Monthly  Last day of the month following the payment of wages or salaries  Paid by employers and employees to private insurance companies and pension funds 
Taxes  Monthly  12th of each month  Paid through MyTax 

Payments Coverage

Papaya Global fully supports payroll payments in Finland.

Contractor Payments

Papaya Global supports payments to contractors in Finland. The payout currency may vary depending on the receiver bank account setup when receiving foreign currencies. It is advised for contractors to reach out to their bank to confirm how foreign currencies are handled.

Payroll Frequency

Monthly

IBAN

IBAN Example Finland

FI6864915779985612

IBAN in print

FI68 6491 5779 9856 12

Country Code FI
Digit Code 68
Bank code 649157
Account Number 7998561
National check digit  2

KYC

The Know Your Customer (KYC) process in Finland involves the obligation of financial institutions or other bodies to recognize and know their customers and have knowledge of the nature and extent of the customer’s operations. This obligation is based on the EU money laundering directive and is regulated and monitored by the Finnish Financial Supervisory Authority (FIN-FSA).

The process includes registering the customer’s identifying data and information on the company’s ownership structure and the nature of its business operations. In certain cases, it may involve obtaining various background information related to the risk of damage to reputation, such as negative news, possible authority penalties, or appearance on sanction or corruption lists. From June 2018, the KYC policy also covers the buyer client of an export company, the so-called ‘third party’.

This means that the buyer and other necessary parties will be subjected to an investigation of the risk of damage to reputation in cases that involve a buyer credit guarantee of more than two years, an export credit, or a letter of credit or bill of exchange guarantee of more than two years. The KYC process also involves comprehensive registry searches, electronic identification, and agile electronic contracting.

Banking Regulations

Country-specific banking laws and regulations that impact cross-border workforce payments.

Finland is part of the Single Euro Payments Area (SEPA), which means there is no distinction between cross-border and domestic payments. These payments are subject to the same technical and business requirements.

In Finland, SEPA Credit Transfer (SCT) replaced the national credit transfer by the end of October 2011. The clearing and settlement of Finnish credit transfers take place, as a rule, after midnight for payments executed on the previous day (T+1).

Payments to or from Finland must be made through authorized banks in Finland. Finland has implemented the Cash Control Regulation (CCR), the EU regulation on controls of cash being transported over the EU Border since 2007.

For workforce payments, the employer must pay the salary or wage to the employee bank account on the agreed upon date in the employment contract. As a rule, payment is made once a month or every two weeks. If the payday falls during a weekend or holiday, the payment will be made on the previous weekday.

Opening a bank account

To open a company bank account in Finland, the following steps are required:

  • Extract from the Trade Register: This document should not be older than 90 days.
  • Additional Documents: The bank may require other documents related to the company. These vary by bank and company form. For example, for a limited company, the Articles of Association and the minutes of the board meeting might be needed.
  • Business Plan: It is usually required to provide a report of the nature of the company’s operations.
  • Financial Transactions: An estimate of the number and size of the company’s financial transactions is typically required.
  • Personal Identification Document: present a personal identification document.
  • Opening the Account: opening the account is done either by visiting one of the bank’s branches or online, depending on the bank.

Note that while banks are obliged to provide basic banking services to retail customers, they’re not obliged to open an account for a company. Requirements can vary from bank to bank, so it’s recommended to confirm these with the bank prior to your meeting.

If share capital is paid to the limited liability company, you must open an account for the company that you will establish and pay the share capital to the account before registering the company in the Trade Register.

International Banks

The major foreign banks operating in Finland:

  • BNP Paribas
  • Carnegie Investment Bank AB
  • Citibank International Ltd
  • Crédit Agricole CIB
  • Danske Bank A/S
  • Deutsche Bank AG
  • DNB Bank ASA
  • Forex Bank Aktiebolag
  • Holvi Payment Services Ltd (which is a subsidiary of Spanish bank BBVA)
  • HSBC Global Liquidity Finland
  • Nordnet Bank AB
  • Santander Consumer Finance Finland
  • Societe Generale
  • UBS Wealth Management Finland
  • Skandinaviska Enskilda Banken (SEB)
  • Svenska Handelsbanken AB
  • Swedbank AB

 

Major Local Banks

The major local banks operating in Finland:

  • Finnish Savings Banks Group
  • The OP-Pohjola Group
  • The Finnish Local Cooperative Bank Group
  • Aktia Bank Plc
  • Ålandsbanken Abp
  • Alisa Pankki Oyj
  • Bonum Pankki Oyj
  • Nordea Bank Abp
  • OP Vähittäisasiakkaat Oyj
  • OP Yrityspankki Oyj
  • OP-Asuntoluottopankki Oyj
  • POP Asuntoluottopankki Oyj
  • S-Pankki Oyj
  • Saldo Bank UAB Suomen sivuliike
  • Nordea Bank Finland
  • OP Financial Group
  • Danske Bank
  • Danske Bank A/S
  • Municipality Finance (MuniFin)
  • Finland Branch of
    • Danske Mortgage Bank
    • Svenska Handelsbanken,
    • The Bank of Aland plc (Alandsbanken)

Payment Tools

The B2C payment tools available in Finland include:

  • Credit Cards (Visa and Mastercard)
  • PayPal
  • Trustly
  • SOFORT
  • MobilePay
  • Klarna
  • Apple Pay
  • Google Pay
  • PayTrail
  • Nordea
  • Siirto app
  • Rapyd
  • Adyen
  • 2Checkout (now Verifone)
  • MONEI
  • Authorize
  • Revolut
  • Skrill
  • Braintree
  • Stripe
  • Worldline
  • Inai (payment aggregation solution)
  • NetBank Payments

Cryptocurrency

In Finland, it is possible to pay employees with cryptocurrencies. The state regulates these transactions via the Virtual Currency Act, which treats cryptocurrencies as a value in digital form. Income generated through cryptocurrencies, including when one is paid in crypto, is considered earned income and subject to Income Tax. The tax rate depends on the individual’s total taxable income and their municipality of residence. Profits from cryptocurrency trading gains are treated as capital income and are taxed under capital gains taxes.

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