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The Nordic Morning Group pays taxes on its business income to the countries it operates in, in compliance with local laws and regulations.

Nordic Morning’s main markets are Finland and Sweden. The company also has minor operations in Ukraine and, through an affiliate, in India. Nordic Morning has no companies nor business in countries considered as tax heaven. The Group’s aim is to secure and increase shareholder value through profitable and efficiently managed business operations. The Group’s tax policy is also aimed at securing shareholder value by ensuring that the local tax legislation of each operating country is always complied with and that taxes are paid to the country in question.

In the Group, tax matters are managed by the Group CFO, who reports on relevant tax matters to the Board’s Audit and Structure Committee and if needed also to Group’s Board. The day-to-day tax affairs of individual legal entities are managed in local accounting units, the operations of which are monitored by auditing.

In tax matters that are open to interpretation or otherwise complicated, support is obtained from external tax advisors, or the tax authorities are requested to provide advance rulings and advice. The Group’s objective is to handle its taxes and other levies in as appropriate and timely a manner as possible, in full compliance with the law.

The Group has prepared a transfer pricing policy that defines the pricing principles for the Group’s internal cross-border trading. The transfer pricing policy is in line with current official guidelines and legislation.

In 2014, the Group’s profit before taxes was EUR 3.4 million (4.0 million). The majority of the taxable profit was accrued in Finland. The Group paid income taxes of EUR 0.2 million (0.1 million). The low amount of income taxes paid was due to confirmed tax losses carried forward from the previous years in Finland and Sweden, which amounted to EUR 17.8 million at the end of the 2014 financial year. In 2014, the Group’s effective income tax rate was -3% (3%). 

At the end of the year, deferred tax assets stood at  EUR 0.1 million and deferred tax liabilities stood at EUR 0.7 million (0.8 million). According to principal of cautiousness the Group has not booked any deferred tax receivables from taxes carried forward from previous fiscal years.

Of the taxes paid for the financial year, the most significant item was statutory employer’s contributions at EUR 6.0 million )Tax report 2014 (6.3 million), the majority of which was paid to Sweden.

Of the taxes remitted for the financial year, value added tax payments totaled EUR 8.2 million (9.5 million) and withholding taxes totaled EUR 10.1 million (10.2 million). The Group also received value added tax refunds for its Swedish printing operations for previous financial years amounting to EUR 6.2 million (2.5 million).

In addition, Nordic Morning paid other mandatory contributionsand other tax-like contributions in 2014 totaling EUR 1.6 million (EUR 1.1 million). The Group also pays indirect taxes related to its purchases, such as road tolls, energy taxes and insurance taxes.