Our tax strategy and compliance
Metsä Group Tax Policy, approved by the Board of Directors, has been established to govern the main tax principles applied in the Group. Tax Policy is applied globally in all companies and legal entities belonging to Metsä Group. Tax policy also helps to recognise and control relevant tax risks.
The key tax principles include:
All tax decisions made within Metsä Group and all other measures and actions which affect taxation have to be legal and in accordance with the applicable tax laws and regulations. All tax decisions are based on sound commercial reasons and they proactively support the goals of business activity. Corporate structures and other arrangements created only for tax reasons are not implemented.
All transfer prices between group companies, either relating to the sale of goods or services, shall be set on an arm’s length basis. Costs and income are allocated to the company they belong to. Profits or losses can only be transferred from one unit to another by applying the methods allowed by the tax laws and rules in the countries concerned.
All tax decisions and other actions affecting taxation are properly documented. Metsä Group is committed to full tax compliance and good working relationship with the tax authorities in various jurisdictions. Taxes are reported, collected and paid according to the laws and regulations in each jurisdiction where Metsä Group operates.
Management of the tax affairs within the Group is conducted by the head office tax team. The tax team monitors tax risks involved in business transactions and advises the subsidiaries in implementing the tax principles in their daily business as well as in business restructurings. The use of external tax advisors is controlled by the tax team to ensure appropriate planning and structures which are in accordance with the tax principles of Metsä Group.