Because freelancers are not Mellow's employees and we don't pay taxes on their payouts, they must declare any income received via Mellow by themselves.
To carry on tax accounting in Finland for your Mellow income, you need to:
Be a tax resident
Determine the applicable tax obligations
Tax residence
Finland taxes its residents on their worldwide income, while non-residents are taxed on their income from Finnish sources only.
Individuals are considered tax residents of Finland if they meet at least one of the following criteria:
They have a permanent residence in Finland.
They spend more than six consecutive months in Finland during a calendar year (tax period). Short-term trips outside the country do not interrupt this period, and the reason for presence in Finland is not relevant.
When moving to another country, Finnish citizens retain their tax resident status for three full years after departure, unless they can prove they did not maintain strong ties with Finland during the tax period in question (learn more). More details about additional obligations when moving to / leaving Finland.
Finland has double taxation agreements with a number of countries (full list), the provisions of which may override the applicable tax residence rules and other provisions of national legislation.
Taxpayer ID number
A personal identity number (henkilötunnus, HT or HETU) is a unique, lifelong identifier of individuals used for tax filing, accessing public services, and conducting financial transactions, such as opening a bank account. It consists of 11 characters, with the first six representing the holder's date of birth (example: 131052-308T). Finland's Digital and Population Data Services Agency (Digi- ja väestötietovirasto, DVV) assigns this number to citizens at birth (recording it in the Population Information System, Väestötietojärjestelmä) and to foreign citizens after registering in the System. To register, applicants can either complete an online form or submit the DVV05.03.00A form in paper format. Both methods require a personal visit with identity documents and proof of residence. Processing takes up to 7–8 weeks, after which the number is sent to the applicant's email or Suomi account (or by mail at the residence address if neither is available). The HT may also be automatically assigned by the Finnish Immigration Service (Maahanmuuttovirasto, Migri) to holders of qualifying residence permits / residence cards, or by the Finnish Tax Administration (Verohallinto, Vero) when issuing a tax number (veronumero/verotunniste), which is mandatory only for those working at construction sites or shipyards. Learn more about HT
A business ID number (yritys- ja yhteisötunnus, Y-tunnus or Y-ID) is a unique identifier assigned to legal entities and sole proprietors (yksityinen elinkeinonharjoittaja / toiminimiyrittäjä) upon successful registration in the Finnish Business Information System (Yritys- ja yhteisötietojärjestelmä, YTJ). It consists of 9 digits, with the last digit serving as a verification number (example: 2166512-5). Learn more about Y-ID
A VAT identification number (Arvonlisäveronumero, ALV-numero) is issued by the Tax Administration after VAT (ALV) registration. It combines the country code prefix FI with the Y-tunnus number, excluding the hyphen (example: FI21665125). You need to register for VAT if your activities meet certain criteria. You can check your VAT registration number here. Learn more about ALV-numero
Taxes and contributions payable by freelancers
There are different forms of doing business in Finland, but freelancers can receive income via Mellow only if they register as sole proprietors (yksityinen elinkeinonharjoittaja / toiminimiyrittäjä).
IMPORTANT! Mellow does not have the option to choose a tax status for freelancers based in Finland, but you can fill in your taxpayer ID in your account.
Taxpayers can register in the taxpayer's account OmaVero (MyTax) to interact with tax authorities and submit tax returns online, as well as on the Suomi online information platform for accessing public services and communicating with public authorities. Access is available through bank ID (pankkitunnukset), mobile certificate (mobiilivarmenne), or electronic identity card (henkilökortti). Additional access methods are available for foreign citizens.
Read on for more details.
Sole proprietors
A sole proprietor (yksityinen elinkeinonharjoittaja/ toiminimiyrittäjä) engages in entrepreneurial activities, having sole ownership of a business (toiminimi) and bearing the corresponding risks.
Limitations: applicants must be at least 18 years old (registration is possible from age 15 with guardian consent), not be undergoing bankruptcy proceedings, and have no other legal capacity restrictions. Non-EEA citizens must have an entrepreneur's residence permit or another type of Finnish residence permit that allows entrepreneurial activities.
Registering as a sole proprietor is an option if you provide services or sell goods in your own name. Registration is free when done online through the OmaVero account. However, registration using alternative means is required if you have an obligation to register in the Finnish Trade Register (Kaupparekisteri). This obligation applies if you meet any of these conditions:
Have commercial premises for conducting business
Have employees (except for spouses, minor children, or grandchildren)
Conduct activities that require a permit/license
In such cases, you can register either online through the Business Information System website (video tutorial) or by completing form Y3, or form Y6 if you have a Y-tunnus number (both forms include a personal data annex). Information must be entered in Finnish or Swedish (form completion instructions: Y3 – Finnish/Swedish, Y6 – Finnish/Swedish).
Documents can be submitted by mail to the address indicated on the notification form or in person to both the Finnish Patent and Registration Office (Patentti- ja rekisterihallitus, PRH) and the Tax Administration. Both agencies record information in the Business Information System and their respective registers: PRH handles the Trade Register (Kaupparekisteri), while the Tax Administration manages the VAT payers register (arvonlisäverovelvollisten rekisterii), prepayment register (ennakkoperintärekisteri), and employer register (työnantajarekisteri) where applicable.
When choosing any of the registration methods available (when registering in the Trade Register), a registration fee of EUR 70 applies, with an additional EUR 70 for each enterprise name (aputoiminimi). Learn more about payment here.
Applications are processed on a first-come, first-served basis, typically taking about three weeks, with faster processing for online submissions. You can check the submission date of documents currently under review here (updated weekly) and track application status online. Upon approval, you will receive an email notification, and a Trade Register extract with your assigned Y-tunnus number will be mailed to your residence address (online submissions receive the number automatically after notification is sent). Learn more about the registration process
If the sole proprietor has employees, it is essential to be aware of the duties associated with the employer status.
Upon ceasing activities as a sole proprietor, an individual must submit a notification online (automatic approval is possible if conditions are met) or in paper format using form Y6, and fulfill all reporting obligations (learn more).
Key aspects:
A sole proprietor can operate under their own name, register a different name, or choose an additional name during registration or later by submitting form Y6 for business changes (learn more).
IMPORTANT! To sign up for Mellow and obtain all the relevant documents, you must use your name and surname. You may not use any other business name as a sole proprietor.
When registering, you need to specify your main activity code from the list compiled by Statistics Finland (Tilastokeskus, TS). This information is public and retrievable when querying information about the sole proprietor.
Licenses/permits: sole proprietors engaged in certain types of activities need a license/permit (online questionnaire).
Intellectual property protection: a sole proprietor can obtain patents (patentti), register trademarks (tavaramerkki), design rights (mallioikeus), and/or domain names (verkkotunnus).
Opening a bank account is at the sole proprietor's discretion but is necessary for accurate accounting of income and expenses from business activities.
Business insurance may be obligatory depending on the nature of your business as a sole proprietor and whether you employ staff.
Start-up assistance is available through the start-up grant program (starttiraha), which can help establish your business and secure a start-up entrepreneur's residence permit.
Unemployment benefit (työttömyysetuudet): when closing or reducing business activities, sole proprietors are eligible for three types of financial assistance (subject to requirements).
Useful links: guide for entrepreneurs; courses for entrepreneurs; online survey for aspiring entrepreneurs; guide for hiring employees; planning tools for starting sole proprietorship; checklist.
Accounting requirements. Sole proprietors must maintain regular records of income and expenses. They are required to issue invoices (lasku) for income received via Mellow. All invoices, receipts, waybills, and other financial documents must be retained for at least six years, while financial records must be kept for a minimum of ten years. Learn more about accounting
Accounting can be done in one of the following ways:
Single-entry bookkeeping (yhdenkertainen kirjanpito) is a simplified system that records only the sole proprietor’s income and expenses. This applies by default and can be used as long as no more than one of the following thresholds has been exceeded during the previous two financial periods:
Net revenue – EUR 200,000
Total assets (balance sheet) – EUR 100,000
Average number of employees – 3
Double-entry bookkeeping (kahdenkertainen kirjanpito) is a more complex system where each transaction is recorded with both a debit and credit entry, forming the basis for financial statements. This becomes mandatory when two or more of the above thresholds are exceeded.
IMPORTANT: For sole proprietors, the financial year typically is the calendar year. However, those using double-entry bookkeeping may opt for a different period (up to 18 months).
The obligation to prepare financial statements arises when a sole proprietor no longer qualifies as a micro enterprise (mikroyritys), which occurs when at least two of the following thresholds have been exceeded during the previous two financial periods:
Net revenue – EUR 700,000
Total assets (balance sheet) – EUR 350,000
Average number of employees – 10
The requirement to file financial statements applies when at least two of these thresholds are exceeded:
Net revenue – EUR 12 million
Total assets (balance sheet) – EUR 6 million
Average number of employees – 50
Financial statements must be submitted to the Finnish Trade Register within six months after the financial period ends. You can do this online or by completing a template form and mailing it to the Patent and Registration Office. Paper submissions incur a registration fee of EUR 100.
Sole proprietors are not required to undergo an audit.
Useful links: financial statements; FAQ.
Sole proprietors must pay the following taxes and contributions:
Income tax (tulovero) is calculated at progressive rates:
Income, EUR | Bracket tax rate, % |
Less than 20,500 | 0 |
20,500–30,500 | 19.00 |
30,500–50,400 | 30.25 |
50,400–88,200 | 34.00 |
88,200–150,000 | 42.00 |
More than 150,000 | 44.00 |
Documented business-related expenses and mandatory social insurance contributions are deductible, and losses can be carried forward for ten years. Additionally, the Tax Administration automatically applies a 5% entrepreneur reduction to annual income (minus any recognized losses from previous years) for sole proprietors.
Income reporting. Taxpayers must inform the Tax Administration of their expected profit (income minus expense) by requesting a tax card (verokortti) and/or a decision on tax prepayments (ennakkovero) for the upcoming reporting period (calendar year). Finnish citizens can apply online or by mail using Form 5010e (application completion guidelines). Foreign nationals staying in Finland for more than six months must submit Form 5042e in person at a Tax Administration office. These can be amended during the year if necessary. When calculating tax prepayments, the Tax Administration considers not only business income but also employment income and any financial assistance received (such as start-up grants).
From the second year of business onward, tax prepayments are automatically calculated based on the current year's profit. Additionally, if other income sources exist, taxpayers receive their tax cards between November 23 and December 13, 2024, for the next accounting period.
Reporting takes the form of a pre-completed tax return (esitäytetty veroilmoitus), delivered in March/April through the taxpayer's OmaVero account or by mail if no account exists. This return includes previously declared information reflected in the freelancer's tax card. Sole proprietors can correct this information if needed and submit it online or by mail in paper format (completion instructions). Filing deadline (if tax return has been amended) varies by taxpayer; for example, in 2024, deadlines may fall on April 2, May 7, May 14, or May 21. However, changes can be made until the tax audit completion date (specified in the tax decision (verotuspäätöksestä) accompanying the pre-completed tax return). Providing incomplete or inaccurate information may result in additional tax charges (minimum EUR 75), and missing the deadline may incur a fine of EUR 50.
Sole proprietors must also file a business tax return (elinkeinotoiminnan veroilmoitus), even for periods with no income. This can be submitted through OmaVero, a dedicated platform, or by mail using Form 5 (3049e) to the Tax Administration (completion instructions). The submission deadline is April 2 of the year following the reporting year (extension may be available).
Tax payments are made in advance installments, with the amount determined by total tax liability:
Total tax payable, EUR | Number of payments | Payment month |
170–500 | 2 | March, September |
500–1,700 | 3 | February, July, November |
1,700–10,000 | 6 | February, April, June, August, October, December |
More than 10,000 | 12 | Monthly |
The total tax amount and timing of tax card amendments determine the number of annual payments (maximum 12). The minimum prepayment is EUR 170; lower amounts are not required in advance and will be included in the freelancer's final tax assessment (learn more). You can opt for equal monthly installments by making appropriate changes in your OmaVero account. The Tax Administration sends payment information and instructions to your OmaVero account (link to find your documents) or Suomi account, or by mail to your residence address if neither account exists.
The payment deadline is the 23rd of each reporting month. Taxes can be paid through OmaVero, where payment details are pre-filled in the template, but payments must be processed immediately (learn more). Late payments incur interest at 11% (for 2024), calculated from the day after the due date until the payment date (online interest calculator).
If you anticipate additional tax liability when filing your return, you can request an additional prepayment (lisäennakko) using Form 5010e from December of the current tax year (online tax calculator). Payments made after January incur late payment interest (huojennettu viivästyskorko) from February 1 at a preferential rate of 6% (for 2024). You may also apply to the tax authority for a payment extension.
The tax authority sends a tax decision (verotuspäätöksestä) along with the pre-completed tax return, showing the final tax amount to be paid or refunded, the tax audit completion date, and payment/refund deadlines. If no adjustments are made to the tax return, the payment deadline matches the tax decision (most freelancers must pay in August, September, October, or November). Tax amounts exceeding EUR 170 are split into two payments due on different dates. If the pre-completed tax return is modified, the tax authority sends an updated tax decision by the end of October with the correct tax amount and revised payment date (payment instructions). Tax audit-related payments also incur a late payment interest (huojennettu viivästyskorko) at a preferential rate of 6% (for 2024).
Social security contributions (eläkevakuutusmaksut) are payable under the Self-Employed Persons’ Pensions Act (yrittäjän eläkelaki, YEL) and are mandatory when all these conditions are met:
The person is a sole proprietor
Age is between 18 and 69 years
Entrepreneurial activity continues for at least four months (without interruption)
Estimated annual income exceeds EUR 9,010.28 (for 2024)
Voluntary contributions are also possible. Sole proprietors must apply for YEL insurance within six months of starting their business. The Finnish Center for Pensions (Eläketurvakeskus, ETK) sends reminder letters about this obligation. Insurance is available through pension insurance companies (Elo, Ilmarinen, Varma, Veritas) or sector-specific pension funds that manage self-employed pension insurance (Apteekkien eläkekassa, Eläkekassa Verso).
For business income, contributions are calculated based on confirmed YEL income, which is not the sole proprietor’s actual income but rather an annual monetary assessment of their business activities (this should equal the salary that a similarly qualified employee would receive). This assessment cannot exceed a threshold, which is EUR 204,625 for 2024 (online calculator). The following contribution rates apply (for 2024):
24.10% for ages 18 to 52
25.60% for ages 53 to 62
24.10% for ages over 62.
New entrepreneurs receive a 22% discount on insurance premiums, automatically applied for four years (48 months).
No separate reporting is required (FAQ).
Payment is due on the 20th of the month or the next business day if paying in one installment. The total amount can be divided into 2, 3, 4, 6, or 12 annual installments. However, at least half of the total annual payment must be completed by August 1 (online payment calculator).
Value Added Tax (VAT) / Arvonlisävero (ALV) becomes mandatory when turnover exceeds EUR 15,000 in a 12-month financial period, though voluntary payment is also possible. If revenue exceeded this threshold before VAT registration, you must submit returns and pay tax retroactively (late submissions may incur penalties and 11% interest charges). Learn more about VAT accrual
To pay VAT, you need to register as a VAT payer, which can be done online through your OmaVero account or by submitting notification using Form Y3 (when registering as a sole proprietor) or Form Y6 (if VAT obligation arises during business operations) by mail to the address specified in the notification form. Registration typically takes three weeks to process. Once registered, sole proprietors must issue invoices (lasku) marked with "ALV rek." (invoice requirements). Learn more
VAT applies to income from services and goods sales. The standard rate is 25.5%, with reduced rates of 14%, and 10% for specific goods and services. Certain activities qualify for 0% rates (such as international services), while some services may be exempt. Businesses with turnover under EUR 30,000 in the reporting period may apply for VAT relief (arvonlisäveron alarajahuojennus) and have their VAT amount reduced (online VAT calculator).
Reporting requires submitting a self-assessed tax return (veroilmoitus oma-aloitteisista veroista) online through OmaVero or dedicated platforms. Paper returns (Form 4001e) are allowed only in exceptional circumstances (completion instructions). The default reporting period is monthly. However, after your first year as a VAT payer, you may change your accounting period (via Form Y6) to:
Quarterly reporting: for annual revenue under EUR 100,000
Quarterly or annual reporting: for annual revenue under EUR 30,000
The deadline for monthly/quarterly submissions is the 12th day of the second month following the reporting period. Annual reports are due by the last day of February. If you find errors in your tax return, you can submit corrections (learn more).
Tax payments must be made by the reporting deadline (instructions).
Additionally, when selling goods or providing services to EU-registered foreign clients, freelancers must file a recapitulative statement (yhteenvetoilmoitus) containing the buyers’ VAT numbers. Submit this report monthly in electronic form through your OmaVero account or dedicated platforms. Paper reports (Form 9633e) are permitted only in exceptional circumstances (completion instructions). The submission deadline is the 20th of the month following any month with such transactions. No report is required for months without these transactions.
Municipal tax (kunnallisvero) is calculated at a flat rate ranging from 4.40% to 10.80% of gross income. Church tax (kirkollisvero) ranges from 1% to 2.25% depending on the taxpayer's parish (if applicable). Each municipality / local church sets their rates within nationally legislated limits.
Reporting and payment follow the same process as income tax.
Public broadcasting tax (yleisradiovero) applies to permanent Finnish residents aged 18 and older. The tax rate is 2.5% of gross income exceeding EUR 14,000, with a maximum payment of EUR 163. Residents of the Åland Islands pay a fixed rate of EUR 123 (for 2024). Those earning EUR 14,000 or less annually are exempt.
Reporting and payment follow the same process as income tax.
Additional information
Income received through Mellow is declared using certificates and invoices, and in accordance with the offer agreement.
If you have any questions, get in touch via the chat in your Mellow account or email us at [email protected].