Permanent establishment registration package

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 Finland 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)

Available for an extra fee:

Accounting in case the annual report has not been submitted

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 companies.

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.