When levying taxes, national tax authorities usually practise little restraint with respect to other states, unless a tax treaty exists. If several states claim the right to taxation in respect of cross-border transactions there is a risk of double taxation which poses a formidable obstacle to international trade and investment.

Liability to Finnish income tax is to be expected if one sets up a subsidiary or branch office in Finland. However, liability may still accrue in the absence of such conscious acts of establishment. Even where the majority of trade occurs across national borders, in many cases auxiliary personnel and material resources are also used in Finland. The use of such resources may be enough to trigger liability to Finnish income tax. All too often this comes as a surprise to the foreign enterprise.

One would think that in terms of commercial management VAT issues are purely routine as long as the necessary formalities are observed when issuing invoices. Unfortunately, this is only the theory. Where cross-border transactions are concerned, it is necessary to explore and use all possible arrangements in order to avoid incurring financial loss:

Due to language barriers, foreign traders and investors often find it difficult to make informed choices from the various accounting and consulting services on offer. In contrast to the situation in many other countries, in Finland there is no specific profession capable of providing the complete spectrum of services needed for complex international transactions – from bookkeeping to advanced tax planning – on a ‘one-stop shop’ basis and for competitive prices.

The development of a sound risk management strategy primarily calls for the identification of the risks that already exist in the circumstances at hand. Identification of the needs prevailing in the transport sector is a prerequisite for drafting good contracts. The risk scenario in the transport and logistic sector is very specific and not comparable to risk scenarios found in other sectors of international trade.

The services of transport and logistics operators are often carried out across international borders. Typically, they will have to make use of personal and material resources at international traffic hubs. At a certain level of intensity, this use of resources leads to foreign tax liability for VAT or corporate income tax. In many cases, this may come as a surprise to the operator.

Cabotage is national road transport by non-resident hauliers. It is evident that the ability to compete essentially depends on the rate of capacity utilisation. In international transportation, the moving of transport resources without cargo can be avoided by cabotage transports only.

During recent years, the building and the logistics sectors have grown faster on average than the domestic economy in general. Enterprises involved in the leasing of transport and building equipment have performed even better. With regard to the leasing of motor vehicles for transport services heavier than 3.5 tonnes, as well as the leasing of other transport or building equipment, there is no legislation in Finland which could be considered a significant hindrance to entry into the Finnish market.

As a rule, industrial plant contracts are agreed on a turnkey basis. For building the industrial plant the general contractor has to use a variety of subcontractors from different branches and of different nationalities. The special characteristics of international industrial projects present a challenge also in the process of contract drafting. Back-to-back clauses are often used in order to cope with this challenge. However, they are not a magic wand.

Any foreign enterprise intending to sell services relating to the construction industry in Finland will inevitably have to familiarise itself with Finnish law to some extent. When construction services are carried out in Finland, mandatory provisions of Finnish law as well as local practices and business customs have an effect on the contractual relationship.

The business environment in Finland is different than in other countries in many respects. Get acquainted to these differences and avoid mistakes!

It is a common habit of Finnish enterprises to agree that any disputes be resolved by arbitration courts instead of the regular national courts. Only by the use of arbitration can the parties ensure that their dispute is dealt with by persons suitably qualified to master the complexities of the subject-matter at hand, that a decision will be made within a reasonable timescale, and that business secrets are kept out of the public domain.

The corporate acquisition process involves extensive preparations, comprising intensive scrutiny and examination as well as the negotiation and drafting of the contract documents. The process of integration and administration of the acquired company after signature of the contracts is an equally important challenge that is often underestimated in practice.

Enterprises considering to make investments in Finland may benefit from some public financial incentives.

When exporting Finnish products to Germany, the need for preventive advice is often underestimated. This may have expensive consequences.

Soweit in Deutschland lebende Ehegatten mit Kindern ein Testament aufsetzen wollen, wird ihnen – soweit das gemeinsame Vermögen nicht deutlich eine Million Euro übersteigt – meist der Abschluss eines Berliner Testaments empfohlen. In Fällen mit internationalen Aspekten ist die Wirksamkeit des Berliner Testaments nicht gesichert und es kann auch zu Steuernachteilen führen.

Laajalle levinneen kuvitelman mukaan kantajapuolelle on hyötyä siitä, että se voi käydä oikeutta omassa kotimaassaan. Tämä ei kuitenkaan välttämättä pidä paikkansa.

Die Berufstätigkeit im Ausland hat neben vielen anderen Aspekten auch Auswirkungen auf einen späteren Rentenbezug. Vor Aufnahme einer Tätigkeit in Finnland sollte man sich daher zumindest mit den Grundzügen des Rentenrechts vertraut machen.

Jos saksalainen liikekumppani tai asiakas jättää oikeutetut saatavanne maksamatta, on suurta merkitystä sillä, ovatko vakuudet kunnossa.

Teollisuuslaitokset hankitaan yleensä avaimet käteen (turnkey) periaatteella. Laitosrakentaja itse ei välttämättä valmista yhtään laiteosaa ja rakennuspuolen työt teetetään melkein poikkeuksetta aliurakoitsijoiden avulla. Kansainvälisten teollisuuslaitosprojektien erikoispiirteet tekevät sopimusten laatimisesta haasteen.

Yrityskaupan valmistelu vie yleensä useita kuukausia. Kaupan kohteen koosta riippuen suoritetaan moninaisia tarkastuksia ja neuvotellaan lukuisista sopimusasiakirjoista.