Example of tax registration in a foreign country

For example, enterprise ABC has sites in Sweden, Denmark, and the UK. The company consists of two legal entities:

  • Denmark
    This legal entity contains only the Denmark site
  • United Kingdom (UK)
    This legal entity contains the sites in Sweden and the UK.

The sites in Denmark and Sweden both perform service activities in Finland which are subject to taxation in Finland.

In Finland, the company requires two tax numbers and must submit the various tax reports twice:

  • For the legal entity in the UK
  • For the legal entity in Denmark
[...]

You can use the following multicompany structure for enterprise ABC.

[...]
  • Company 100 of type Both represents the legal entity in the UK
  • Company 110 of type Financial represents the legal entity in Sweden
  • Company 400 of type Both represents the legal entity in Denmark
  • For the tax registration in Finland:

    • Company 120 of type Financial for transactions owned by the sites in the UK and Sweden
    • Company 410 of type Financial for transactions owned by the site in Denmark

Note that companies F120 and F410 are not linked to other departments through enterprise units.

If a sales office in the UK, in company L100, creates transactions that are taxable in Sweden, LN puts accounting office A110 as the financial department field on the order header. The financial details of financial company F110 apply to the order and related invoices.

If a sales office in the UK or in Sweden, in company L100, creates transactions that are taxable in Finland, LN puts accounting office A120 as the financial department field on the order header. The financial details of financial company F120 apply to the order and related invoices.

If the sales office in Denmark, in company L400, creates transactions that are taxable in Finland, LN puts accounting office A410 as the financial department field on the order header. The financial details of financial company F410 apply to the order and related invoices.

You must enter the following data in the Financial Department by Financial Company and tax Country (tctax4110m000) session:

Financial CompanyTax CountryFinancial Department
100SwedenA110
100FinlandA120
110UKA100
110FinlandA120
400FinlandA410