82 Account of cross-border hybrid arrangements, instructions

Form 82 is for informing the Tax Administration of any hybrid mismatch arrangements with other countries. You must complete Form 82 when your company or other corporate entity has entered into these arrangements. You can download the form on forms.
 
Finnish tax rules on hybrid mismatch arrangements (act no. 1567/2019, “Laki eräiden rajat ylittävien hybridijärjestelyjen verotuksesta”) are applicable on the tax assessment of the income received by corporate entities, general partnerships, limited partnerships, and permanent establishments located in Finland (section 1, subsection 2 of the Act).

Hybrid arrangements have the effect of a mismatch between two or more tax jurisdictions. As a result, the differences in tax rules between the different jurisdictions typically make an expense deduction available to the taxpayer twice, i.e. doubly.  Additionally, items of income may be kept outside of taxation.

For more information on the Finnish act no 1567/2019, see the Tax Administration’s guidance “On the tax treatment of hybrid arrangements” – Eräiden rajat ylittävien hybridijärjestelyjen verotus. (The guidance is in Finnish and Swedish; link to Finnish.)

1 The parties to the hybrid arrangement

This section is for indicating the participant’s names, their legal entity forms, and the country codes of their countries of tax residence. Enter the country codes for each party to reflect the respective tax jurisdictions where the parties are located. Enter the country codes as defined in the ISO 3166 standard (www.iso.org), two alphabetic characters. To check the relevant code or codes, you can visit Tax treaties that Finland has signed with other countries. However, that page only contains the countries that have a tax treaty with Finland.

2 The amount of expenses and the amount of income related to the arrangement

Amount of non-deductible expense

Enter the expense, which is not deductible in income taxation, and based on the hybrid mismatch arrangement. No tax deduction is allowed for an expense or part of it that does not relate to an item of income subject to tax. Enter the amount in this line also in case the expense is deducted twice from 2 different items of taxable income.

Amount of taxable income

Enter the item of income based on the hybrid mismatch arrangement, which is subject to tax. Income is treated as being subject to tax when a deduction from such income has not been refused when assessing the taxes of the payer of the expense because a restriction of tax-deductibility applies to the expense.

3 Characteristics of the arrangement

Indicate which one of the arrangements listed in the Finnish act governing hybrid mismatches is in question. Select one or several from the following:

• A mismatched financial instrument is used (section 3 of the Act)
• Beneficiary of payments is a hybrid entity (section 4 of the Act)
• Payer is a hybrid entity (section 5 of the Act)
• The outcome is a double deduction (section 6 of the Act)
• A hybrid permanent establishment (section 7 of the Act)
• An expense is regarded as paid because a transaction within the hybrid arrangement was made (section 8 of the Act)

4 Description of the arrangement

Write up a free-text account describing the main characteristics of the arrangement and the important facts and circumstances relating to it.