DT7154 - Double Taxation Relief Manual: Guidance by country: Finland: Notes

Capital Gains (Article 14)

The UK may tax any gains derived by a resident of Finland on the disposal of certain rights and assets connected with the exploration and exploitation of the sea bed and sub-soil in the UK and shares deriving their value directly or indirectly from such rights or assets.

Students and apprentices (Article 21)

Students and apprentices from Finland are exempt from UK tax on payments from abroad for the purpose of their maintenance, education or training, on certain grants and awards and on remuneration for services in connection with their studies or training rendered in the UK where the remuneration constitutes earnings reasonably necessary for their maintenance or education.

Exemption is not to be given for a period of more than five years. Exemption is also given on certain grants and awards received by an individual from Finland who is in the UK for the primary purpose of research for a period not exceeding two years.

It has been agreed that a trainee from Finland who visits the UK under the auspices of the International Trainee Exchange of the Finnish Ministry of Labour is exempt from UK tax including deduction of tax at source from earnings, provided that the visit does not exceed 12 weeks.

Teachers (Article 22)

The convention contains a Teachers’ Article which provides for exemption from UK tax on the income from teaching provided the teacher is subject to tax on the income in Finland and that the visit to the UK lasts less than two years.

Off-shore activities (Article 30A)

Article 30A of the convention contains provisions for the treatment of activities in connection with the exploration or exploitation of the sea bed sub-soil and their natural resources. These provide that:

a) an enterprise of one country carrying on such activities in the other country is deemed to be carried on a business in the other country through a permanent establishment;

b) a resident of one country who carries on such activities in the other country consisting of professional services or other independent activities of a similar character is deemed to be performing those activities from a fixed base in that other country;

c) profits derived by a resident of one country from the operation of ships or aircraft for the purpose of transporting supplies or personnel in connection with such activity are taxable only in the country of the operator’s residence.

Refer to paragraphs (3) and (4) of Article 30 for details of certain limitations in connection with the duration of such activities;

d) earnings for duties in connection with such activities performed off-shore in one country may be taxed in that country.