Finland Tax Agency Updates Guidance on Payment of Trade Income to Foreign Companies

The Finnish Tax Administration May 6 posted online Guidance No. VH/2358/00.01.00/2026, updating guidance on payment of trade income to foreign companies registered abroad. Updated topics covered include: 1) foreign companies comparable to Finnish contractors are obligated to withhold tax at source on trade income paid to nonresident foreign companies when the work was performed in Finland; and 2) if a foreign company’s country of residence isn’t a member of the European Economic Area (EEA), the company can only be entered in the prepayment register if it has a permanent establishment (PE) in Finland, effective from Jan. 1 under the Prepayment ...