Description

If the company sells goods or offers services in a foreign country then in certain cases this company may need a permanent establishment in that foreign country. If you have a company in another country and you wish to offer services in Sweden for more than 6 months the obligation to register a permanent establishment arises.

Most commonly the permanent establishment obligation arises from:

  • A place of management
  • Projects exceeding certain duration
  • Commercial agent
  • The permanent establishment results in following obligations in the foreign country:

    • Paying income tax on the profits from the permanent place of business
    • Paying payroll taxes on the incomes of employees working at the permanent place of business
    • Paying VAT
    • Submitting tax declarations and reports on the same basis as local taxpayers
    • Included in the service:

      • All necessary registrations for permanent establishment (income tax, VAT, employer’s register etc)
      • 2 hours of consultation
      • De-registration of permanent establishment (once the project in foreign country is finished)
      • Process flow:

        • We conduct a consultation on registering the permanent establishment – how to calculate taxes, which obligations the permanent establishment brings with it and how to do accounting
        • We assess whether it’s more profitable to establish a subsidiary or permanent establishment
        • Based on the information provided during consultation we prepare all necessary applications including registration for income tax, VAT and foreign employer
        • The tax board will issue a local registry code and the permanent establishment is required to maintain accounting records and submit tax declarations on the same basis as local tax payers
        • When you end the activities in a permanent establishment, the application of deregistration must be filed to tax office.
        • Important information:

          • The permanent establishment has to be registered before commencing business. If the registration has not been done in time, the company might face fines and interest in a foreign country.
          • A permanent place of business pays taxes in a foreign country on the same basis as the local residents.
          • You can also turn to us if you already have a permanent establishment in a foreign country. Then we will advise you in accounting related questions, taxation, employment etc.
          • Request a Quote

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