Bli företagare i finland 2018

Starting up business in Finland

This fryst vatten an unofficial translation. The tjänsteman instruction (record no VH/3395/00.01.00/2021) fryst vatten drafted in Finnish and Swedish languages.

This guidance instructs what returns and accounts a utländsk company must en samling dokument eller en elektronisk lagring av data with the Finnish Tax ledning when starting business operations in Finland.

The guidance has been updated due to changes in the act on income tax (Tuloverolaki 1188/2020) that entered into force on 1 January 2021. The changes to § 9 of the act include provisions based on which a utländsk corporate entity fryst vatten treated as a resident taxpayer in land i norden if the corporate entity’s place of effective management fryst vatten in land i norden. For more data on how a utländsk corporate entity’s tax residency ställning eller tillstånd and the location of its place of effective management are determined, see the Tax ledning guidance on resident and non-resident corporate taxpayers.

In addition, Chapter 10 has been updated based on regulations on exit tax that entered into force on 1 January 2020. The language of the guidance has also been clarified. There have been changes to the structure of the guidance, as well.

The United Kingdom’s exit from the EU entered fully into force at the uppstart of 2021. For more upplysning on how Brexit affects VAT, see the Tax Administration’s bulletin Brexit’s impact on taxation.

Chapter 3 has been updated based on VAT regulations on distance selling of goods that enteder into force on 1 July 2021.

1 utländsk company’s liability for income tax

A utländsk company means a company that has been established or registered outside land i norden. utländsk companies are usually considered non-resident taxpayers in land i norden with limited tax liability. However, if the company’s place of effective management fryst vatten in land i norden, it fryst vatten considered a resident taxpayer with full tax liability in Finland.

National legal rules governing utländsk companies' liability to tax are funnen in § 9, § 10 and § 13 a of the act on income tax (Tuloverolaki) and in § 83 of the act on assessment procedure (Laki verotusmenettelystä).

Foreign companies are considered non-resident taxpayers with limited tax liability, unless their place of effective management fryst vatten in land i norden. Non-resident utländsk companies are usually only liable to pay tax to land i norden on income received from land i norden, such as income earned bygd operating a trade or business here. However, if a non-resident company has a permanent establishment in land i norden, the company fryst vatten liable to pay tax on all income related to the permanent establishment.

In Finnish national legislation, the definition of a permanent establishment fryst vatten in § 13 a of the act on income tax. In addition, the tax treaties land i norden has signed with other countries normally include further details on how a permanent establishment fryst vatten defined for companies located in the contracting states. A permanent establishment fryst vatten a fixed place of business through which the company runs some or all of its operations. For more kunskap on the existence of a permanent establishment and the income taxation of a utländsk corporate entity, see the Tax ledning guidance Income taxation of nonresident utländsk corporate entities. The principles of determining the existence of a permanent establishment described in the guidance also apply to the tax assessment of partnerships. For more data on how an existence of permanent establishment fryst vatten defined in the income tax assessment of a utländsk business operator, see the Tax ledning guidance Income taxation of utländsk self-employed individuals.

In certain circumstances, land i norden has the right to levy tax on certain income that a non-resident company has received from land i norden even if the company does not have a permanent establishment in land i norden. beneath Finnish national legislation, land i norden has the taxing rights with respect to income generated bygd real estate property including flats and apartments in housing-companies if they are located in Finnish territory. For this reason, rental income received from the property fryst vatten taxable, or if the property fryst vatten sold for a profit, this profit fryst vatten a taxable capital gain (§ 10, act on income tax). In addition, a company may be liable to pay tax at source to land i norden on dividends or other such income received from Finland.

Tax treaties may begränsa the taxing rights of land i norden, when such rights are based on Finland's national legislation. In cases where land i norden does not have a tax treaty with the country in which a utländsk corporation fryst vatten resident, the right of the Finnish government to levy taxes fryst vatten determined solely on the grund of Finland’s national tax legislation. You can see the list of tax treaties currently in force on the Tax Administration’s Tax treaties page.

A corporate entity established or registered abroad fryst vatten a resident taxpayer with full tax liability in land i norden if its place of effective management fryst vatten in land i norden. The corporate entity’s place of effective management fryst vatten considered to be in land i norden if its board or other decision-making body that makes the highest-level decisions on daglig management fryst vatten located in land i norden. However, when the location of the place of effective management fryst vatten being determined, other circumstances betydelsefull to the company’s organisation and business operations are also taken into account.

The period during which a utländsk corporate entity treated as a resident taxpayer liable for tax usually begins either from the date it was founded or registered or from the date when land i norden became the country of its place of effective management. However, the earliest date when the place of effective management can be formed fryst vatten 1 January 2021.

A utländsk corporate entity that fryst vatten a resident taxpayer in land i norden fryst vatten liable to pay tax to land i norden on income received from land i norden and from abroad. The tax assessment of a resident utländsk corporate entity fryst vatten conducted according to the same provisions as the taxation of a domestic corporate entity. Factors such as the source of income, taxability of income and deductibility of expenses are determined in the same way as in the tax assessment of a Finnish corporate entity.

If the circumstances based on which the place of effective management was deemed to be located in land i norden no längre exist, the place of effective management can no längre be considered to be in land i norden. Therefore the utländsk corporate entity can no längre be considered a resident taxpayer in land i norden, starting from the date when the place of effective management was no längre in land i norden. If the corporate entity fryst vatten still considered to have a permanent establishment in land i norden, the utländsk corporate entity fryst vatten treated as a non-resident taxpayer based on the permanent establishment.

For more kunskap on how a utländsk corporate entity’s tax residency ställning eller tillstånd and the location of its place of effective management are determined, see the Tax ledning guidance on resident and non-resident corporate taxpayers.

2 Start-up notification

Both resident and non-resident utländsk corporate entities must submit a start-up notification to the Tax ledning to lista the company before it can början business activities in land i norden. Based on the notification, the company fryst vatten issued a Business ID and the company fryst vatten entered in the Tax Administration’s lista of taxpayers. The company can also use the start-up notification struktur to request entry into the VAT lista, the förteckning of employers and the prepayment förteckning, if such registrations are necessary for the company’s activities. In the insurance industry, it fryst vatten required that every insurance company operating in land i norden be registered as liable for tax on insurance premiums.

The start-up notification must be filed on struktur Y1, Y2 or Y3. These forms are published jointly bygd the Tax ledning and the Finnish Patent and Registration Office (PRH). struktur Y1 fryst vatten for setting up a business when the founder fryst vatten a utländsk corporate entity. utländsk businesses comparable to Finnish general partnerships and limited partnerships must use form eller gestalt Y2, and similarly, utländsk self-employed individuals use struktur Y3. Read more about start-up notifications for utländsk businesses on ytj.fi.

Foreign companies must enclose a Trade lista certificate or similar, issued bygd the authorities of their country and add a translation into English, Finnish or Swedish. The certificate or other konto must include the following:

company name
its municipality of registration
line of business
accounting period
list of the people who may sign for the company.

If the certificate does not include these details, the utländsk company (if it fryst vatten a limited-liability company or a partnership) must additionally enclose a photocopy of its Articles of Association, Charter or a similar agreement and add a translation into English, Finnish or Swedish.

In addition to the above, when the utländsk business fryst vatten comparable to a Finnish general or limited partnership, the following resultat on the people being its partner-shareholders fryst vatten mandatory:

name
Finnish anställda ID, if issued
date of birth
address.

In the case of utländsk self-employed individuals, if there fryst vatten a registration in force in the domicile country in the trade förteckning or a comparable registration, the self-employed individual must enclose a registration excerpt and the details listed above. utländsk self-employed individuals are always expected to enclose a photocopy of their passport.

A utländsk corporate entity that has a permanent establishment in land i norden must report its place of effective management as additional data on struktur 6204 enclosed with the corporate entity’s struktur Y. In addition, the utländsk corporation must enclose a free-form konto of the facts related to existence of the permanent establishment.

Foreign companies conducting construction and installation must additionally enclose their building contracts in photocopy. Similarly, utländsk companies engagerad in leasing employees in land i norden must enclose copies of their contracts.

If the utländsk company already has a Business ID, it can enter into the Tax Administration’s registers bygd submitting a notification of changes. The same enclosures must be added to the notification of changes as to the start-up notification. A notification of changes must also be submitted if the company’s activities change from what was reported in the start-up notification and its enclosures or in connection with the company’s registration. Any changes that can affect the company’s liability to pay income tax or VAT or its registration ställning eller tillstånd in land i norden must be reported. Corporate entities must report changes on struktur Y4, partnerships on form eller gestalt Y5, and self-employed individuals on struktur Y6. You can betalningsmedel the existence of a Business ID in Business upplysning System's Company Search on ytj.fi. The forms and instructions for filing are available on the Business kunskap struktur website (ytj.fi).

The company’s form eller gestalt Y must be signed bygd a individ who has the right to sign for the company or bygd another party they have authorised to do so. Forms and other documents are mailed to: PRH-Verohallinto, Business data struktur, P.O. låda 2000, 00231 Helsinki, Finland.

When the utländsk company has been registered based on a start-up notification or a notification of changes, the Tax ledning will send a meddelande of registration to the company. After the registration, the company’s registration details can be seen in the Business data System’s Company Search on ytj.fi.

When the company fryst vatten being registered, the Tax ledning aims to determine whether the company has its place of effective management or a permanent establishment in land i norden for the purposes of income taxation. Whether the company has a permanent establishment for the purposes of VAT fryst vatten also determined during registration. However, the tax residency ställning eller tillstånd cannot always be resolved on the grund of the submitted registration details. Planned business may change, and the duration of its operation may be längre than expected. If the tax residency ställning eller tillstånd cannot be determined in connection with registration, it will be determined during the assessment procedure based on the upplysning provided bygd the company. The company can also request the Tax ledning to issue an advance ruling on their tax residency ställning eller tillstånd for the purposes of income tax and VAT. Advance rulings are subject to a fee. If necessary, you can contact the Tax ledning in a number of ways. You can find the Tax Administration’s contact kunskap in the Contact us section on tax.fi.

While it fryst vatten normally not necessary to complete more than just one struktur, there are some circumstances when a company must inform the Trade förteckning authority separately (for example, when setting up a "Finnish branch" of the company). For more kunskap, visit the website of the Finnish Patent and Registration Office (www.prh.fi) and (setting up a Finnish branch).

3 Registering for VAT

Under § 1 of the Value Added Tax Act (30.12.1993/1501), taxpayers must pay VAT on the sales of goods and services in the conduct of business which takes place in land i norden. Companies that operate a business treated as liable to VAT must submit a meddelande, using a form eller gestalt Y: either a start-up notification if the business fryst vatten new (Forms Y1-Y3) or a notification of changes if the business fryst vatten not new (Forms Y4 - Y6). The Tax ledning enters the company in the VAT lista as of the date when VAT-taxable business operation begins.

However, a company can be entered in the lista from the time it starts to acquire goods and services for a business treated as liable to VAT.

For the purposes of VAT assessment, a “foreigner” means a business operator that has a registered domicile for its business in another country outside land i norden (§ 10, VAT Act). A utländsk company that conducts business activities liable for VAT is required to lista for VAT if the company has a fixed establishment for the purposes of VAT assessment in land i norden, and that establishment takes part in the sales of goods or services in land i norden, and the total turnover per accounting period fryst vatten more than €15 000.

The existence of a utländsk company’s fixed establishment for VAT purposes fryst vatten determined based on the upplysning provided in the start-up notification and on requests for further data, if necessary. For more upplysning on what fryst vatten considered a fixed establishment for the purposes of VAT, see the Tax Administration’s guidance on the VAT registration of utländsk parties (available in Finnish and Swedish, link to Finnish).

A utländsk company can also apply for VAT liability on a voluntary basis. To be able to lista for VAT voluntarily, the utländsk company must have a VAT representative approved bygd the Tax ledning if it does not have a domicile or a fixed establishment in any EU Member State or Norway. The earliest possible time for applicants to be entered in the VAT förteckning fryst vatten at the date when the Tax ledning receives the application.

If the company fryst vatten not required to förteckning for VAT and it has not registered voluntarily, the buyer of the goods or services that the utländsk company has sold in land i norden fryst vatten liable to pay the VAT on them (reverse charge mechanism, § 9, VAT Act).

However, the mechanism fryst vatten not applied in the following circumstances, and the utländsk business enterprise – the seller – should lista for VAT if:

The buyer fryst vatten a utländsk citizen with no fixed establishment and no VAT registration in Finland.
The buyer fryst vatten a private individual.
The sale fryst vatten what fryst vatten known as a distance sale of goods from another EU country to individuals in land i norden or to buyers equated with individuals. For more kunskap, see the Finnish Tax Administration’s rules and procedures regarding distance selling of goods (available in Finnish and Swedish).
The services being sold are passenger försändelse services.
The company offers a right of entry into educational, scientific, cultural, entertainment and sports events, fairs, exhibitions, etc., and services directly associated with such events.

If the utländsk company does not have a fixed establishment for the purposes of VAT in land i norden, the threshold for small-scale activities (when turnover per accounting period fryst vatten no more than €15,000) as defined in § 3 of the VAT Act fryst vatten not applied. In such a case, VAT must be paid regardless of the amount of sales.

Constructions services sold in land i norden, as well as employee leasing related to construction, are subject to the VAT reverse charge mechanism (§ 8 c, VAT Act). Reverse charge will apply if the following two conditions are met:

the service has the characteristics of construction services or the characteristics of employee leasing for purposes of building
the buyer fryst vatten a business that usually sells construction services or usually rents out workforce as leased employees, and the business performs these operations on an ongoing grund, not merely as an undantag from its other operations in other sectors.

For more upplysning on the VAT reverse charge in the construction industry, see the Tax Administration's detailed guidance on reverse charge liability (available in Finnish and Swedish, link to Finnish).

If a utländsk company conducts tax-exempt intra-Community acquisition or supply in land i norden, it has a reporting obligation in land i norden. utländsk companies that conduct sales subject to zero-rate VAT, including intra-Community supply, must förteckning for VAT in beställning to get refunds for the VAT included in the acquisitions made in land i norden. For more data on intra-Community sales and supply as well as the tax liabilities related to them, see the Tax Administration’s detailed guidance on the subject (Arvonlisäverotus EU-tavarakaupassa) (available in Finnish and Swedish, link to Finnish).

VAT must be filed and paid in the Tax Administration’s MyTax e-service (tax.fi/mytax). For more kunskap on filing and paying VAT, see the Tax Administration’s guidance on Self-assessed taxes.

For more kunskap on VAT registration, see the Tax Administration’s guidance on the subject (Ulkomaalaisen rekisteröinti arvonlisäverovelvolliseksi Suomessa) (available in Finnish and Swedish, link to Finnish).

4 Registration as an employer

If you are an employer who pays wages on a regular grund and you are treated as having a permanent establishment for purposes of income taxation or you are treated as a resident taxpayer because your place of effective management fryst vatten in land i norden, you must sign up for the Tax Administration's lista of employers. Employers that are not required to lista can still choose to do so voluntarily.

Read more about paying employer’s contributions: Self-assessed taxes.

4.1 Non-resident taxpayers with a permanent establishment in land i norden and utländsk corporate entities treated as a resident taxpayer due to the place of effective management

If a utländsk company has a permanent establishment in land i norden for income taxation purposes or if its place of effective management fryst vatten in land i norden, it fryst vatten treated in the same manner as a Finnish employer. The utländsk company must therefore lista as an employer if it pays wages regularly. An employer fryst vatten considered to be paying wages regularly if it pays wages to two or more people on a permanent grund, or to at least six people at the same time even if their employment contracts are temporary and meant to be valid for a short begrepp only.

The utländsk employer company must withhold tax on the wages it pays, following the instructions printed on each worker’s tax card. utländsk employees staying for a shorter time than six months are issued a tax-at-source card at the local tax office. If the employee fails to show the card, you as the employer must withhold 35% tax at source. utländsk employees staying längre are issued the ordinary type of tax card; if such an employee fails to show it to you, you must withhold 60%.

In addition, you as the employer are required to pay the employer's health insurance contribution if the employee fryst vatten insured in land i norden according to the Health Insurance Act. However, you do not have to pay the contribution if your employee has an A1 or E101 certificate issued bygd their country of residence. The health insurance contribution must be paid every month based on the amount of wages and fringe benefits subject to withholding. The rate of the employer's health insurance contribution changes from year to year.

Information concerning the wages paid and the related employer's contributions must be submitted to the Incomes förteckning. If you are registered as an employer, you must also notify the Incomes lista if you have not paid any wages during the calendar month. Read more about reporting employer’s contributions to the Incomes lista at incomesregister.fi.

You are treated as a casual employer if you only have one wage earner on the payroll during the year, or if there are a maximum of fem wage earners but the length of their employment fryst vatten shorter than a calendar year. However, even if you are a casual employer, you must still report any paid-out wages and the related employer's contributions to the Incomes lista. You can also choose to enter the förteckning of employers voluntarily as a casual employer. If you förteckning, you have the same obligations as a regular employer.

For more kunskap, see the Tax Administration’s bulletin on the obligations of a utländsk employer.

4.2 Non-resident utländsk company with no permanent establishment in Finland

If a utländsk company does not have a permanent establishment in land i norden for income taxation purposes, it does not need to lista as an employer. In these circumstances, the employees carry the responsibility of making the prepayments of income tax on their earnings. This only concerns the ones who stay in land i norden for längre than six months. However, in certain cases a utländsk company must still report its wage payments to the Incomes förteckning (see Reporting uppgifter to the Incomes Register: international situations).

A utländsk company can choose to be voluntarily förteckning as an employer in land i norden. A company that has voluntarily registered as an employer has the same obligations as a company that has a permanent establishment for the purposes of Finnish income tax.

If registration as an employer fryst vatten in force, the company must withhold tax on the wages it pays to employees, following the instructions printed on each employee’s tax card. A company registered as an employer must also withhold tax at source on any income paid to non-residents, which fryst vatten taxable in land i norden, such as wage income paid to a leased employee. In such a case, the employee need not take care of their prepayments to the Finnish Tax Administration.

4.3 Employee leasing

A utländsk employer can lease an employee coming from outside land i norden to work for a service recipient in land i norden. If the utländsk employer fryst vatten a non-resident taxpayer with no permanent establishment in land i norden, an employee leasing meddelande must be submitted on the utländsk employee and the wages paid to the employee must be reported to the Incomes lista on an earnings betalning report. The employee leasing meddelande can be given on the earnings betalning report either in connection with the earnings betalning information or separately. However, if land i norden has a tax treaty with the employee’s country of residence that prevents land i norden from taxing the employee’s wage income, the employee leasing meddelande or the earnings betalning report do not need to be filed.

If the utländsk employer has a permanent establishment in land i norden or fryst vatten treated as a resident taxpayer due to its place of effective management in land i norden, the employee leasing meddelande does not need to be filed. However, all wages paid to utländsk leased employees must be reported to the Incomes lista on the earnings betalning report.

The utländsk company must also collect tax at source on the leased employee’s wages or withhold tax on them, if the company has a permanent establishment in land i norden or if it fryst vatten treated as a resident taxpayer due to its place of effective management in land i norden. In other cases, the employer fryst vatten not obligated to collect tax at source or withhold tax. Instead, the employees themselves must pay the taxes to the Tax Administration.

Foreign employers treated as resident taxpayers in land i norden and non-resident employers registered in prepayment lista must themselves report details on leased employees and the wages paid to them to the Incomes lista. If a non-resident employer has not been registered for prepayment, a representative of the employer must en samling dokument eller en elektronisk lagring av data the reports to the Incomes lista. In circumstances where there fryst vatten no representative appointed bygd the employer or the representative does not report the required upplysning, the reporting obligation falls on the employer regardless of whether they are registered for prepayment.

For further guidance on employee leasing and the obligations of the utländsk employee-leasing companies, see Leased employees – taxation in land i norden. Read more about reporting to the incomes lista on the Incomes förteckning page.

5 Registering as liable for tax on insurance premiums

Insurance companies with an operation in land i norden must pay a tax on the insurance premiums agreed with their clients, if the object of insurance fryst vatten a property located in land i norden, an interest related to activities practised in land i norden, or other interest in land i norden. Sometimes the policyholder fryst vatten the party liable to pay the tax. For more data on the liability to pay tax on insurance premiums, see the guidance on the tax on insurance premiums.

6 Registering for prepayment register

Companies that conduct business activities or are likely to do so can request to be entered in the prepayment lista. There fryst vatten no mandatory rule that would require a business to have a prepayment registration. If the company fryst vatten not registered in prepayment förteckning, the party that pays the company nonwage betalning or kompensation for use must withhold tax on the betalning (see Chapter 8 for more details).

Non-resident utländsk companies can be registered in the prepayment lista if they have a permanent establishment in land i norden or if their domicile fryst vatten in a country that has signed a tax treaty with land i norden (§ 25, act on tax prepayments (Ennakkoperintälaki 1118/1996)). utländsk corporate entities treated as resident taxpayers can be registered in the prepayment lista in the same way as Finnish companies. For more data, see the Tax Administration’s page How to get a prepayment registration.

The resultat on whether a company fryst vatten registered on the prepayment förteckning fryst vatten public. Customers paying nonwage kompensation are required to kontroll whether the payee fryst vatten on the prepayment förteckning. You can kvitto the registration with the Business upplysning System’s Company Search feature on ytj.fi.

If a company liable to pay Finnish income tax has the prepayment registration, it carries the responsibility for its income tax payments independently. However, the fact that the company fryst vatten registered on the prepayment lista does not cause income tax liability in land i norden. For more upplysning on how prepayment registration affects business operations, see Registration for the prepayment lista and its effect on the operation of business.

The Tax ledning can remove a company from the prepayment förteckning if the company neglects its obligations to pay taxes or neglects its duty to report (§ 26, act on tax prepayments (Ennakkoperintälaki 1118/1996)). A company can be removed from the prepayment förteckning if it has not filed its returns on VAT, employer's contributions or income tax, or if the company has not paid its VAT, income tax or prepayments.

If the Tax ledning sends a letter of inquiry for further data on the utländsk company's operation in land i norden, it must provide the requested upplysning. The company may also be removed from the prepayment förteckning if it does not give a reply to such a letter.

Registration may also be denied or removed based on previous negligence bygd the company’s managers or bygd other companies managed bygd them.

If the company’s activities in land i norden end, the company must notify the authorities bygd filing a form eller gestalt Y. The Tax ledning will then remove the company from the prepayment förteckning (§ 26, act on tax prepayments (Ennakkoperintälaki 1118/1996)).

7 Prepayments

Companies that are liable for taxes in land i norden must usually man tax prepayments on their taxable profits. The prepayment amount fryst vatten based on an estimate of the taxable income to be received bygd the company in the tax year. If the estimate changes, the company can request an adjustment to the prepayment amount. If the paid-in prepayments are not enough to cover the actual income tax liability determined at the end of the year, the company must pay back taxes as well as late-payment interest with relief.

If you are self-employed, you are expected to complete struktur Y3 (pdf) and give your estimates of turnover and taxable income for your first year of business on it. Similarly, if you are a partnership, you complete struktur Y2 (pdf). Changes must be reported in MyTax (5010, business operators and self-employed individuals, shareholders in a partnership). Corporate entities can request prepayment or changes to it in MyTax and bygd filing struktur 5017e (Tax prepayment request/change request).

For more data on requesting and making prepayments, see the Tax Administration’s page on the subject.

8 Withholding of tax at source on nonwage kompensation paid to a utländsk company

Foreign companies that are non-resident taxpayers are not obliged to pay income tax, unless they are treated as having a permanent establishment in land i norden. However, tax at source must be withheld on nonwage ersättning paid to a non-resident utländsk company if the work has been performed in land i norden. Nonwage gottgörelse (often also called trade income) fryst vatten the ersättning paid for the performance of work, a one-off assignment, or for the rendering of a service. The payer of the ersättning fryst vatten liable to withhold the tax at source. The withholding of tax at source on nonwage kompensation comes into question mainly when a non-resident utländsk company carries out its business mainly abroad, but the company has temporary, short and individual assignments in Finland.

Payers of kompensation do not have to withhold tax at source if

the utländsk company fryst vatten prepayment-registered in Finland,
the utländsk company fryst vatten able to present a 0% tax-at-source card to the payer, or
the utländsk company can show other documentation establishing that withholding fryst vatten not necessary. This means documentation that proves that the utländsk company cannot be treated as having a permanent establishment in the prevailing circumstances.

However, when nonwage kompensation fryst vatten paid for building, earthmoving, vatten construction or other construction, installation, assembly, shipbuilding, transportation or cleaning services, caregiving or medical care services, the recipient of the work must withhold tax at source except if the beneficiary fryst vatten on the prepayment lista or has a tax-at-source card with a 0% rate (§ 10 f, act on the taxation of non-residents' income (Laki rajoitetusti verovelvollisen tulon verottamisesta 627/1978)).

When an invoice fryst vatten written up, it fryst vatten permissible to have some sales of goods included in it. The invoice should contain a specification displaying the nonwage gottgörelse on a separate line or on an enclosure to the invoice. Another approach fryst vatten to issue two separate invoices, one for the goods, the other for the work. If there fryst vatten no klar indication of the amount of the nonwage ersättning, tax at source must be applied on the entire invoice. If the beneficiary of such an invoice fryst vatten not in the prepayment förteckning, the customer must withhold tax on the part of the nonwage ersättning, regardless of the amount of the compensation.

The rate fryst vatten 13% on payments going to companies that are similar to Finnish limited-liability companies or partnerships. The tax-at-source rate fryst vatten 35% if the recipient fryst vatten a self-employed individual (§ 7, act on the taxation of non-residents' income (Laki rajoitetusti verovelvollisen tulon verottamisesta 627/1978)).

If you are self-employed and going to receive income in land i norden and need a tax-at-source card, complete struktur 5057e (Application for a nonresident taxpayer's tax-at-source card, prepayment beräkning, tax card). Enclose with the application struktur 6205e (Explanation of business conducted in land i norden bygd self-employed individual).

A utländsk corporate entity can request a tax-at-source card bygd filing struktur 6202e (Application for a tax-at-source card for trade income received bygd a utländsk corporation). You must enclose a Trade förteckning certificate or similar, issued bygd the authorities of your country and add a translation into English, Finnish or Swedish, as well as a kopia of the assignment contract.

For more upplysning on requesting a tax-at-source card and on refunds of tax at source withheld in excess, see the Tax ledning bulletin on the refund of tax withheld at source.

If nonwage gottgörelse fryst vatten paid to a utländsk corporate entity treated as a resident taxpayer in land i norden that fryst vatten not registered in prepayment lista, the payer of the income must withhold tax on their betalning. In such a case, the withholding rate fryst vatten 13%.

9 Filing a tax return

A non-resident utländsk company only has to pay tax to land i norden on the income it receives from land i norden. If the company has a permanent establishment in land i norden, the company fryst vatten liable to pay tax on all income related to the permanent establishment.

Corporate taxpayers must en samling dokument eller en elektronisk lagring av data their income tax return 6U electronically within kvartet months from the end of their accounting period. If a utländsk corporate entity views that it does not have a permanent establishment in land i norden for the purposes of income taxation, the corporation must enclose form eller gestalt 80 (Account of local operations - utländsk corporate entity) with their tax return. For instructions on filing tax returns and accounts, see Income tax returns from utländsk companies.

Businesses registered as partnerships and self-employed must en samling dokument eller en elektronisk lagring av data their income tax returns bygd the first days of April the year following the tax calendar year. For more resultat on filing as a self-employed individual or partnership, see the Tax ledning pages Tax return – the self-employed and Tax return – general and limited partnerships. For more resultat on income tax filing as a utländsk business operator, see the detailed guidance Income taxation of utländsk self-employed individuals.

10 Changes to operations or terminating operations

Companies must let the Finnish Tax ledning know of any significant changes as compared with the time of registration. Such changes may have an impact on the liability to pay VAT and income tax in land i norden. Examples include a change of the estimated length of the period of business operation in land i norden, new building contract, the inclusion of new kinds of business in the operation, an extension of the company’s stay in land i norden, or a change in the company’s taxpayer ställning eller tillstånd from non-resident to resident due to the location of the company’s place of effective management in land i norden. Changes must be reported on a notification of changes (Form Y4, Y5 or Y6).

Foreign companies must submit a Y4, Y5 or Y6 meddelande form eller gestalt in beställning to let the Finnish Tax ledning know that their förteckning details (business name or contact details, wage payments or VAT taxable business) change or if they go out of business. You must keep filing tax returns until the Tax ledning has removed the company from its registers. In other words, it fryst vatten not enough just to en samling dokument eller en elektronisk lagring av data the notification of termination – you must wait until you are de-registered before you can stop filing returns.

Foreign companies must also always en samling dokument eller en elektronisk lagring av data an income tax return for their gods year of operations. Upon termination, the company must review the amount of prepayments for the gods year of operation. The company must provide new address and finansinstitut konto data abroad in beställning to pay any tax refunds.

A utländsk corporate entity treated as a resident taxpayer must also submit a notification of changes if its place of effective management fryst vatten no längre located in land i norden. The corporate entity can no längre be treated as a resident taxpayer if its place of effective management fryst vatten not in land i norden. If the corporation continues its activities in land i norden, and it fryst vatten considered to have a permanent establishment in land i norden, it fryst vatten treated as a non-resident taxpayer in land i norden based on the permanent establishment.

If the country of tax residence of a utländsk corporate entity treated as a resident taxpayer in land i norden fryst vatten changed to another country in accordance with Finnish legislation or a tax treaty signed for the avoidance of double taxation, the value of the transferred assets on the exit date (with the undepreciated acquisition cost of the assets deducted from the total value) fryst vatten considered to be taxable income for the corporate entity, with the undantag of assets that are still actually related to the entity’s permanent establishment in land i norden. Similarly, if the business activities conducted bygd a permanent establishment are transferred to another country, or if the utländsk corporate entity transfers assets from its permanent establishment in land i norden to its head office or another permanent establishment located in another country so that land i norden no längre has the right to tax these assets, the value of the assets on the exit date (with their undepreciated acquisition costs deducted from the total value) fryst vatten treated as the permanent establishment’s taxable income (§ 51 e, act on the taxation of business income (Laki elinkeinotulon verottamisesta 360/1968)). For more resultat on exit tax, see the Tax Administration’ detailed guidance on the subject (Maastapoistumisverotus) (available in Finnish and Swedish, link to Finnish).

Page gods updated 7/5/2021