Tax registration in a foreign countryFor an enterprise with sites in multiple countries, you can set up financial companies with a registered tax number in each country. The transactions of each department must be reported for tax to the authorities of that country and with the company's tax number in that country. However, in some situations, transactions must be reported for taxation in a foreign country. To report tax in a country other than the company's home country, an enterprise must have a registered tax number in the other country, whether or not the company has employees, facilities, inventory, or other assets in the other country. In the following situations, you must have a registered tax number in countries other than the company's home country:
Transactions taxable in the destination country Transactions can be taxable in the destination country:
Transactions taxable in the destination country often are 'supply-and-install' projects. Because projects are characterized by being unique, LN does not support a tax country other than the home country for sales schedules and purchase schedules, which typically are predictable and repetitive. Transactions taxable in foreign countries can be:
For transactions taxable in foreign countries, you must create a separate financial company for tax registration in the foreign country. Tax registration requirements To tax registration in foreign countries, the following requirements apply:
For details on how tax registration in foreign countries is implemented in LN, refer to Tax registration in a foreign country - concepts.
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