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Some more recent information on Finland taxes..

Taxation of an individual's income is progressive. In other words, the higher the income, the higher the rate of tax payable. The tax rate for an individual is between 5% - 37.5%. In addition to direct taxation there is also municipal tax. This tax is payable by a self-employed individual on his or her income and it fluctuates between 15.5% - 19.75% depending on the municipal authority.

Church tax is also payable.

Reduced rates of tax or exemption are available for certain income earners.

The standard rate of corporation tax is fixed at present at 29%. A reduced rate of tax is applicable to certain corporations. In general private companies in Finland are characterized by the suffix OY after their names. Public companies have the suffix OYJ.

The tax year in Finland ends on December 31st.

Advance payments of tax are made on the following basis.

An individual whose only income is from a salary is not obligated to file an annual tax return.
- The employer deducts tax from the employee and transfers the payment immediately to the tax authorities on a monthly basis.
- A self-employed individual is obligated to make 12 monthly advance payments of tax.
- A self-employed individual is obligated to file a return before the end of March.

Notice there is no IRS-they just take it out of your pay. (Can anyone say flat tax?) Also the rate can fluctuate up pass 60% depending on your income. That may be what is the confusion.