The work on the construction site is under way. The current projects concern mostly mill infrastructure that does not involve large workforce but as the equipment installation will go ahead in the beginning of 2016, about 2,500 people are expected to be working on the construction site.
While as many as 70 per cent of the bioproduct mill’s main equipment deliveries are of Finnish origin, many non-Finnish subcontractors will participate in the project. It is clear that the size of the project ensures public scrutiny and much attention will be drawn to the contractor’s responsibilities and obligations as well as tax compliance.
In practice, all contractors must register with the tax administration but the type of registration depends on the project, tax treaty and other considerations. In addition, the recent changes in the act on the contractor’s obligations and liability require the company to arrange a health care service agreement. Furthermore, through the project the foreign contractor may become tax liable, which may require accounting and payroll matters to be taken care of locally.
Promolior helps foreign companies to handle all their obligations towards the Finnish authorities according to the local regulations. In addition, we can advise you with preparations, determine in advance if a permanent establishment is likely to be formed in your situation and what are the consequences in terms of taxation as well as inform you about local costs, collective agreements, social security and other requirements.
Please contact us if you would like to discuss about the project and official requirements. (+358 44 239 8224, mikko.hirvilammi (at) promolior.com). When needed, we can arrange a meeting on or near the construction site.
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