Moving away from Finland with Oy

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ddddd
Posts: 13
Joined: Sun Sep 25, 2016 10:04 pm

Moving away from Finland with Oy

Post by ddddd » Wed Apr 28, 2021 11:13 am

I am planning to register an Osakeyhtiö but I am not sure how much longer I will live in Finland. It could be 1 year, it could be 20. What happens to the company when I leave? Will I still get taxed and such in Finland if there are no ties left here? The main market of the company is in Asia, there will be no Finnish customers and I will most likely be moving to a third country, not Asia. Should I just register the country in Asia instead?



Moving away from Finland with Oy

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FinnGuyHelsinki
Posts: 1174
Joined: Sun Nov 08, 2009 8:52 pm

Re: Moving away from Finland with Oy

Post by FinnGuyHelsinki » Wed Apr 28, 2021 12:06 pm

ddddd wrote:
Wed Apr 28, 2021 11:13 am
I am planning to register an Osakeyhtiö but I am not sure how much longer I will live in Finland. It could be 1 year, it could be 20. What happens to the company when I leave? Will I still get taxed and such in Finland if there are no ties left here? The main market of the company is in Asia, there will be no Finnish customers and I will most likely be moving to a third country, not Asia. Should I just register the country in Asia instead?
A company registered in Finland is taxed in Finland. See https://www.vero.fi/en/businesses-and-c ... perations/

betelgeuse
Posts: 3880
Joined: Thu Aug 29, 2013 1:24 am

Re: Moving away from Finland with Oy

Post by betelgeuse » Wed Apr 28, 2021 12:56 pm

ddddd wrote:
Wed Apr 28, 2021 11:13 am
I am planning to register an Osakeyhtiö but I am not sure how much longer I will live in Finland. It could be 1 year, it could be 20. What happens to the company when I leave? Will I still get taxed and such in Finland if there are no ties left here? The main market of the company is in Asia, there will be no Finnish customers and I will most likely be moving to a third country, not Asia.
Many countries make companies tax liable based on management location. The company will also continue to be Finnish tax resident.
ddddd wrote:
Wed Apr 28, 2021 11:13 am
Should I just register the country in Asia instead?
If you register in Asia instead, the reverse applies in that Finland can consider the company tax resident due to management location.

ddddd
Posts: 13
Joined: Sun Sep 25, 2016 10:04 pm

Re: Moving away from Finland with Oy

Post by ddddd » Wed Apr 28, 2021 4:39 pm

betelgeuse wrote:
Wed Apr 28, 2021 12:56 pm
ddddd wrote:
Wed Apr 28, 2021 11:13 am
I am planning to register an Osakeyhtiö but I am not sure how much longer I will live in Finland. It could be 1 year, it could be 20. What happens to the company when I leave? Will I still get taxed and such in Finland if there are no ties left here? The main market of the company is in Asia, there will be no Finnish customers and I will most likely be moving to a third country, not Asia.
Many countries make companies tax liable based on management location. The company will also continue to be Finnish tax resident.
ddddd wrote:
Wed Apr 28, 2021 11:13 am
Should I just register the country in Asia instead?
If you register in Asia instead, the reverse applies in that Finland can consider the company tax resident due to management location.

Just to make sure I understood it correctly: if I register in Finland, I will manage the company in Finland and it will be tax resident here. That’s fine.

If I register the company in Finland and move from Finland, is it still tax-resident in Finland? That seems a bit ridiculous. It could then end up tax-resident in 3 countries!

What could be the consequences of closing the company in Finland and recreating it in the country I move to?

betelgeuse
Posts: 3880
Joined: Thu Aug 29, 2013 1:24 am

Re: Moving away from Finland with Oy

Post by betelgeuse » Wed Apr 28, 2021 6:48 pm

ddddd wrote:
Wed Apr 28, 2021 4:39 pm
If I register the company in Finland and move from Finland, is it still tax-resident in Finland?
Yes.
ddddd wrote:
Wed Apr 28, 2021 4:39 pm
That seems a bit ridiculous. It could then end up tax-resident in 3 countries!
Having tax residency in multiple countries is rather common for companies. I am not sure what the third country is in this context though.
ddddd wrote:
Wed Apr 28, 2021 4:39 pm
What could be the consequences of closing the company in Finland and recreating it in the country I move to?
This is a complex topic and details very depending on the pair of countries involved. There's also ways to change the country of residence for companies as well.

ddddd
Posts: 13
Joined: Sun Sep 25, 2016 10:04 pm

Re: Moving away from Finland with Oy

Post by ddddd » Wed Apr 28, 2021 7:41 pm

betelgeuse wrote:
Wed Apr 28, 2021 6:48 pm

Having tax residency in multiple countries is rather common for companies. I am not sure what the third country is in this context though.

This is a complex topic and details very depending on the pair of countries involved. There's also ways to change the country of residence for companies as well.
In this context the three countries could end up being Asia where the market is, the country I move to and then Finland even though I no longer have any ties here!

Thanks for all your help. At this point I think I will just start off with registering something here (maybe even a tmi since I am personally offering digital services) and then closing it when I leave. I have no interest in dealing with Finnish tax authorities when I have nothing more to do with the country. If I open a new one in the new country is left to be seen.

FinlandGirl
Posts: 685
Joined: Sat Nov 09, 2019 10:43 am

Re: Moving away from Finland with Oy

Post by FinlandGirl » Wed Apr 28, 2021 11:55 pm

ddddd wrote:
Wed Apr 28, 2021 7:41 pm
Thanks for all your help. At this point I think I will just start off with registering something here (maybe even a tmi since I am personally offering digital services) and then closing it when I leave. I have no interest in dealing with Finnish tax authorities when I have nothing more to do with the country. If I open a new one in the new country is left to be seen.
If all you are doing is providing services and get the money on your personal bank account after paying income taxes, then closing down the business when moving and opening a new one will be the simplest option.

It would be more complicated if there were any assets (money, trademarks, software, machines,...) in the company.


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