Permanent Establishment in Finland in Terms of Corporate Income Tax
Nowadays businesses are very fluid and mobile and thus it can be difficult to determine where the company needs to pay its income taxes. We have helped several companies coming to Finland to analyze the likelihood of having a permanent establishment in terms of income taxation in their initial phase of business in Finland. Performing such an analysis before starting operations has saved thousands of euros for our clients and given some certainty in an otherwise quite uncertain situation of expanding to a new market.
Some main characteristics in analyzing the permanent establishment in terms of corporate income tax are:
- A business location (office, branch, factory, workshop, mine etc.)
- A dependent agent
- Place, where management is located
- Length of business operations
More information can be found on the Finnish Tax Administration website.
The above list is by no means complete. In case of questions, please contact our specialist (see contact info on the bottom of the page).
Permanent Establishment in Finland in Terms of VAT
Nowadays businesses are very fluid and mobile and thus it can be difficult to determine where the company has added value and needs to pay VAT. We have helped several companies coming to Finland to analyze the likelihood of having a permanent establishment in terms of value added tax in their initial phase of business in Finland. Performing such an analysis before starting operations has saved thousands of euros for our clients and given some certainty in an otherwise quite uncertain situation of expanding to a new market.
There are certain differences between a permanent establishment in terms of VAT and corporate income tax.
Some main characteristics in analyzing the permanent establishment in terms of VAT are:
- A permanent place of business (office, branch, factory, shop, warehouse, inventory, machinery etc.) that is used for business
- A space, which the company occupies on a permanent basis (may be located on another company’s premises)
- Place, where management is located
- Length of business operations
In construction and installation projects, a permanent establishment is formed if the project or several successive related projects last longer than 9 months. The permanent establishment is formed from the moment when the aforementioned operations started, not only after nine months.
Call off inventories don’t constitute a permanent establishment nor an obligation to register for Finnish VAT.
The existence of consignment stock or a permanent establishment require VAT registration in Finland.
More information can be found on the Finnish Tax Administration website.
The above information is by no means complete. In case of questions, please contact our specialist (see contact info on the bottom of the page).
Questions related to the taxation of your business activities?
Please contact our specialist via phone +358 503 220 600, e-mail: info@kuljus.eu or contact form.