Finnish businessmen interested to operate on the
Irish market are entitled to benefit from the stipulations of the
treaty for the avoidance of double taxation signed by
Ireland and
Finland. The document was signed by the governments of the two states and it is also enforced for the avoidance of
tax evasion. The
treaty is mutually applicable to persons and legal entities,
tax residents of a state operating in the other state.
Our specialists in company formation in Ireland can offer legal assistance on the main stipulations of the
double taxation treaty.
Taxes covered by the Ireland - Finland double tax treaty presented by our Ireland company formation agents
Investors who are interested in
Irish company formation must know that they can benefit from
tax reliefs or
tax deductions under the
Irish – Finnish double tax agreement (DTA) if they are
tax residents of Finland.
Taxes imposed under the treaty are similar in each of the jurisdiction, but there may appear differences deriving from the tax regulations available in each state.
According to the treaty, the Finnish authorities will apply the following taxes:
• the state income tax;
• the communal tax;
• the church tax;
• tax withheld at source from the income received in Finland by non-resident persons.
In Ireland, the local authorities refer to the following income taxes:
• the income tax;
• the capital gains tax.
Under the Ireland - Finland treaty for the avoidance of double taxation, a resident of one of the states refers to the following conditions, as prescribed by Article 4 of the document:
• domicile;
• residency;
• place of management.
• other similar conditions.
Permanent establishment in Ireland
Persons who are interested in
company registration in Ireland have to know that their activity will be
taxed in Ireland if they work under a
permanent establishment.
The term generally refers to a designated place of management in which the activities of a Finnish company are carried out. In a more specific sense, the term refers to the following:
• a branch office;
• an office;
• a factory;
• a workshop;
• a place designated for the extraction of natural resources, such as mines or oil wells.
It can also refer to a building site, as long as the operations are carried out on a continuous basis for a period longer than twelve months.