Moving away from Finland with Oy
Moving away from Finland with Oy
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?
-
- Posts: 1439
- Joined: Sun Nov 08, 2009 8:52 pm
Re: Moving away from Finland with Oy
A company registered in Finland is taxed in Finland. See https://www.vero.fi/en/businesses-and-c ... perations/ddddd wrote: ↑Wed Apr 28, 2021 11:13 amI 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?
-
- Posts: 4368
- Joined: Thu Aug 29, 2013 1:24 am
Re: Moving away from Finland with Oy
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 amI 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.
If you register in Asia instead, the reverse applies in that Finland can consider the company tax resident due to management location.
Re: Moving away from Finland with Oy
betelgeuse wrote: ↑Wed Apr 28, 2021 12:56 pmMany 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 amI 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.
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?
-
- Posts: 4368
- Joined: Thu Aug 29, 2013 1:24 am
Re: Moving away from Finland with Oy
Yes.
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.
Re: Moving away from Finland with Oy
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!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.
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.
-
- Posts: 1345
- Joined: Sat Nov 09, 2019 10:43 am
Re: Moving away from Finland with Oy
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.ddddd wrote: ↑Wed Apr 28, 2021 7:41 pmThanks 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.
It would be more complicated if there were any assets (money, trademarks, software, machines,...) in the company.