Example of tax registration in a foreign country

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

  • Denmark

    This legal entity contains only the Denmark location

  • United Kingdom (UK)

    This legal entity contains the locations in Sweden and the UK.

The locations 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 locations in the UK and Sweden
    • Company 410 of type Financial for transactions owned by the location 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 Departments (tctax4110m000) session:

Financial Company Tax Country Financial Department
100 Sweden A110
100 Finland A120
110 UK A100
110 Finland A120
400 Finland A410
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