{"id":14484,"date":"2024-12-09T15:04:42","date_gmt":"2024-12-09T12:04:42","guid":{"rendered":"https:\/\/grow.ee\/?p=14484"},"modified":"2024-12-09T15:21:42","modified_gmt":"2024-12-09T12:21:42","slug":"what-estonian-companies-need-to-know-if-the-location-of-service-provision-is-finland","status":"publish","type":"post","link":"https:\/\/grow.ee\/en\/mida-peab-teadma-eesti-ettevote-kui-teenuse-osutamise-asukoht-on-soome\/","title":{"rendered":"What does an Estonian company need to know if the place of service provision is Finland?"},"content":{"rendered":"<div class=\"img has-hover x md-x lg-x y md-y lg-y\" id=\"image_925770721\">\n\t\t\t\t\t\t\t\t<div class=\"img-inner dark\" >\n\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1047\" height=\"555\" src=\"https:\/\/grow.ee\/wp-content\/uploads\/2024\/12\/Eesti-Soome.png\" class=\"attachment-original size-original\" alt=\"\" srcset=\"https:\/\/grow.ee\/wp-content\/uploads\/2024\/12\/Eesti-Soome.png 1047w, https:\/\/grow.ee\/wp-content\/uploads\/2024\/12\/Eesti-Soome-300x159.png 300w, https:\/\/grow.ee\/wp-content\/uploads\/2024\/12\/Eesti-Soome-720x382.png 720w, https:\/\/grow.ee\/wp-content\/uploads\/2024\/12\/Eesti-Soome-768x407.png 768w, https:\/\/grow.ee\/wp-content\/uploads\/2024\/12\/Eesti-Soome-18x10.png 18w\" sizes=\"auto, (max-width: 1047px) 100vw, 1047px\" \/>\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\n<style>\n#image_925770721 {\n  width: 100%;\n}\n<\/style>\n\t<\/div>\n\t\n\n\t<div id=\"gap-934539958\" class=\"gap-element clearfix\" style=\"display:block; height:auto;\">\n\t\t\n<style>\n#gap-934539958 {\n  padding-top: 30px;\n}\n<\/style>\n\t<\/div>\n\t\n\n<p>If an Estonian company provides services in another country, for example Finland, it is important to review the tax agreement concluded with that country on the website of the Estonian Tax and Customs Board.<\/p>\n<p>Estonia has a valid double taxation avoidance agreement with 64 countries, 62 of them are in force. An agreement was signed with Finland already in 1993.<\/p>\n<p>This agreement regulates international trade, provision of services and international tax aspects, including possible tax disputes and double taxation. In order to avoid unnecessary tax risks when operating in Finland, it is recommended to review the company&#039;s business plan with our specialists and mitigate possible risks early on.<\/p>\n<h2>Tax withholding register (advance copy tax register)<\/h2>\n<p>Although there is no legal obligation to register your activities, it is still advisable to register in the tax withholding register. This is especially important for construction, installation and assembly work. In the case of registration, the client is not obliged to withhold the invoice from the contractor:<\/p>\n<ul>\n<li>13% of income tax (for a company) or<\/li>\n<li>35% of income tax (in the case of an individual entrepreneur or FIE).<\/li>\n<\/ul>\n<h2>Registration and reporting<\/h2>\n<p>A company can be registered in Finland on the basis of a so-called incorporation notice. Separate records are kept for registered companies, and the company has a reporting obligation in Finland. Failure to register may result in a higher tax burden.<\/p>\n<h2>Profit tax and permanent establishment<\/h2>\n<p>Profit tax (20%) is only calculated in Finland if the company incurs <strong>permanent place of business<\/strong>.<\/p>\n<h3>What is a permanent establishment?<\/h3>\n<p>According to the tax treaty, the company&#039;s income is taxed only in the country in which the company is located, unless the company operates in another country through a permanent establishment located there.<\/p>\n<p>Characteristics of a permanent place of business:<\/p>\n<ol>\n<li><strong>Geographical persistence<\/strong> \u2013 premises, service points, construction sites.<\/li>\n<li><strong>Temporal persistence<\/strong> \u2013 the activity is continuous and lasts from 6 to 18 months.<\/li>\n<li><strong>Conduct of business<\/strong> \u2013 employees, equipment or even a stand-alone device (e.g. server, gaming machine, rental device).<\/li>\n<li><strong>Control Center<\/strong> \u2013 the board is located in Finland, where the company&#039;s main activities take place.<\/li>\n<li><strong>In the construction sector<\/strong> \u2013 a permanent place of business is created if the duration of the construction object exceeds 6 months.<\/li>\n<li><strong>Representative<\/strong> \u2013 an independent agent who is authorized to conclude contracts on behalf of the company. An independent agent may not create a permanent establishment.<\/li>\n<\/ol>\n<h2>Accounting and reporting<\/h2>\n<p>The accounts of a permanent place of business should be kept during the entire period of operation in Finland. This ensures timely reporting of expenses and income and effective tax planning.<\/p>\n<p>A permanent place of business entails the obligation to:<\/p>\n<ul>\n<li>register the company in the Finnish business register,<\/li>\n<li>submit a Finnish tax return with a profit and loss statement,<\/li>\n<li>keep records of assets and liabilities in accordance with Finnish law.<\/li>\n<\/ul>\n<p>If the accounts have not been kept, the Finnish Tax Office can determine the income tax on the basis of a so-called assessment <strong>(assessment tax)<\/strong>. In this case, the tax is calculated indirectly, for example as a certain percentage of the turnover.<\/p>\n<div class=\"row\"  id=\"row-1718056576\">\r\n\r\n\n\t<div id=\"col-1260951956\" class=\"col small-12 large-12\"  >\n\t\t\t\t<div class=\"col-inner\"  >\n\t\t\t\n\t\t\t\r\n\r\n<div class=\"message-box relative dark\" style=\"padding-top:15px;padding-bottom:15px;\"><div class=\"message-box-bg-image bg-fill fill\" ><\/div><div class=\"message-box-bg-overlay bg-fill fill\" style=\"background-color:rgb(27, 26, 70);\"><\/div><div class=\"container relative\"><div class=\"inner last-reset\">\r\n\r\n<div class=\"row\"  id=\"row-1934849711\">\r\n\r\n\n\t<div id=\"col-1226291946\" class=\"col medium-8 small-12 large-8\"  >\n\t\t\t\t<div class=\"col-inner\"  >\n\t\t\t\n\t\t\t\r\n<h2>Accounting in Finland<\/h2>\r\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\r\n\n\t<div id=\"col-289632511\" class=\"col medium-4 small-12 large-4\"  >\n\t\t\t\t<div class=\"col-inner text-center\"  >\n\t\t\t\n\t\t\t\r\n\r\n<a href=\"https:\/\/grow.ee\/en\/services\/accounting-in-finland\/\" class=\"button alert\" style=\"border-radius:8px;\">\n\t\t<span>READ MORE<\/span>\n\t<\/a>\n\r\n\r\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\r\n\r\n<\/div>\r\n\r\n<\/div><\/div><\/div>\r\n\r\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\r\n\r\n<\/div>\n\n\n  \n    <div class=\"row large-columns-3 medium-columns-1 small-columns-1 slider row-slider slider-nav-reveal slider-nav-push\"  data-flickity-options='{&quot;imagesLoaded&quot;: true, &quot;groupCells&quot;: &quot;100%&quot;, &quot;dragThreshold&quot; : 5, &quot;cellAlign&quot;: &quot;left&quot;,&quot;wrapAround&quot;: true,&quot;prevNextButtons&quot;: true,&quot;percentPosition&quot;: true,&quot;pageDots&quot;: false, &quot;rightToLeft&quot;: false, &quot;autoPlay&quot; : false}' >\n\n  <div class=\"col post-item\" >\n\t\t\t<div class=\"col-inner\">\n\t\t\t\t<div class=\"box box-normal box-text-bottom box-blog-post has-hover\">\n            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sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>\t\t\t\t\t\t\t<\/a>\n  \t\t\t\t\t\t\t  \t\t\t\t\t\t\t  \t\t\t\t\t\t<\/div>\n  \t\t\t\t\t\t  \t\t\t\t\t<\/div>\n          \t\t\t\t\t<div class=\"box-text text-center\" >\n\t\t\t\t\t<div class=\"box-text-inner blog-post-inner\">\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t<h5 class=\"post-title is-large\">\n\t\t\t\t\t\t<a href=\"https:\/\/grow.ee\/en\/juhi-kaugtood-valismaalt\/\" class=\"plain\">Manage remote work from abroad \u2013 prevent the emergence of a permanent location with these tips!<\/a>\n\t\t\t\t\t<\/h5>\n\t\t\t\t\t<div class=\"post-meta is-small op-8\">27\/03\/2026<\/div>\t\t\t\t\t<div class=\"is-divider\"><\/div>\n\t\t\t\t\t\t\t\t\t\t<p class=\"from_the_blog_excerpt\">\n\t\t\t\t\t\tRemote work for a driver from abroad is not just a convenience - read how to drive smartly and avoid tax risks.\t\t\t\t\t<\/p>\n\t\t\t\t\t                    \n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div><div class=\"col post-item\" >\n\t\t\t<div class=\"col-inner\">\n\t\t\t\t<div class=\"box box-normal box-text-bottom box-blog-post has-hover\">\n            \t\t\t\t\t<div class=\"box-image\" >\n  \t\t\t\t\t\t<div class=\"image-cover\" style=\"padding-top:56.25%;\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/grow.ee\/en\/raagi-raamatupidajaga-valdi-lisakulusid\/\" class=\"plain\" aria-label=\"Talk to an accountant \u2013 avoid additional costs\">\n\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Raamatupidaja-Grow-Finance-300x169.jpg\" class=\"attachment-medium size-medium wp-post-image\" alt=\"\" srcset=\"https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Raamatupidaja-Grow-Finance-300x169.jpg 300w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Raamatupidaja-Grow-Finance-720x405.jpg 720w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Raamatupidaja-Grow-Finance-768x432.jpg 768w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Raamatupidaja-Grow-Finance-1536x864.jpg 1536w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Raamatupidaja-Grow-Finance-2048x1152.jpg 2048w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Raamatupidaja-Grow-Finance-18x10.jpg 18w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>\t\t\t\t\t\t\t<\/a>\n  \t\t\t\t\t\t\t  \t\t\t\t\t\t\t  \t\t\t\t\t\t<\/div>\n  \t\t\t\t\t\t  \t\t\t\t\t<\/div>\n          \t\t\t\t\t<div class=\"box-text text-center\" >\n\t\t\t\t\t<div class=\"box-text-inner blog-post-inner\">\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t<h5 class=\"post-title is-large\">\n\t\t\t\t\t\t<a href=\"https:\/\/grow.ee\/en\/raagi-raamatupidajaga-valdi-lisakulusid\/\" class=\"plain\">Talk to an accountant \u2013 avoid additional costs<\/a>\n\t\t\t\t\t<\/h5>\n\t\t\t\t\t<div class=\"post-meta is-small op-8\">27\/02\/2026<\/div>\t\t\t\t\t<div class=\"is-divider\"><\/div>\n\t\t\t\t\t\t\t\t\t\t<p class=\"from_the_blog_excerpt\">\n\t\t\t\t\t\tEarly communication with an accountant will help avoid surprises and find better solutions for your business.\t\t\t\t\t<\/p>\n\t\t\t\t\t                    \n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div><div class=\"col post-item\" >\n\t\t\t<div class=\"col-inner\">\n\t\t\t\t<div class=\"box box-normal box-text-bottom box-blog-post has-hover\">\n            \t\t\t\t\t<div class=\"box-image\" >\n  \t\t\t\t\t\t<div class=\"image-cover\" style=\"padding-top:56.25%;\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/grow.ee\/en\/kuidas-valtida-topeltmaksustamist\/\" class=\"plain\" aria-label=\"How to avoid double taxation if the holding is less than 10%?\">\n\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Topeltmaksustamine-300x169.jpg\" class=\"attachment-medium size-medium wp-post-image\" alt=\"\" srcset=\"https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Topeltmaksustamine-300x169.jpg 300w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Topeltmaksustamine-720x405.jpg 720w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Topeltmaksustamine-768x432.jpg 768w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Topeltmaksustamine-1536x864.jpg 1536w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Topeltmaksustamine-18x10.jpg 18w, https:\/\/grow.ee\/wp-content\/uploads\/2026\/02\/Topeltmaksustamine.jpg 1920w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>\t\t\t\t\t\t\t<\/a>\n  \t\t\t\t\t\t\t  \t\t\t\t\t\t\t  \t\t\t\t\t\t<\/div>\n  \t\t\t\t\t\t  \t\t\t\t\t<\/div>\n          \t\t\t\t\t<div class=\"box-text text-center\" >\n\t\t\t\t\t<div class=\"box-text-inner blog-post-inner\">\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t<h5 class=\"post-title is-large\">\n\t\t\t\t\t\t<a href=\"https:\/\/grow.ee\/en\/kuidas-valtida-topeltmaksustamist\/\" class=\"plain\">How to avoid double taxation if the holding is less than 10%?<\/a>\n\t\t\t\t\t<\/h5>\n\t\t\t\t\t<div class=\"post-meta is-small op-8\">17\/02\/2026<\/div>\t\t\t\t\t<div class=\"is-divider\"><\/div>\n\t\t\t\t\t\t\t\t\t\t<p class=\"from_the_blog_excerpt\">\n\t\t\t\t\t\tDividends received from an Estonian company with a holding of less than 101% may result in double taxation.\t\t\t\t\t<\/p>\n\t\t\t\t\t                    \n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>When providing services in Finland, an Estonian company must take into account tax agreements, registration obligations and possible requirements for a permanent place of business.<\/p>","protected":false},"author":24,"featured_media":14487,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84],"tags":[],"class_list":["post-14484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-soome-raamatupidamine"],"_links":{"self":[{"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/posts\/14484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/comments?post=14484"}],"version-history":[{"count":7,"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/posts\/14484\/revisions"}],"predecessor-version":[{"id":14494,"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/posts\/14484\/revisions\/14494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/media\/14487"}],"wp:attachment":[{"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/media?parent=14484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/categories?post=14484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/grow.ee\/en\/wp-json\/wp\/v2\/tags?post=14484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}