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2019 TAX STRATEGY

Nokia UK Tax Strategy

The Nokia Group regards the publication of this tax strategy as complying with it’s duty under section 16(2) of Schedule 19 “Large Businesses: Tax Strategies and Sanctions” of the Finance Act 2016 to publish the UK sub-group’s tax strategy (as applicable to a UK sub-group of a foreign group pursuant to sections 19 and 20 of Schedule 19 “Large Businesses: Tax Strategies and Sanctions” of the Finance Act 2016. This tax strategy applies to all UK companies of the Nokia Group (“UK Nokia Group”). 

Following each of the requirements of paragraph16(2) in turn:

Approach of the Group to risk management and governance arrangements in relation to UK Taxation

Tax Governance

Tax for the UK Nokia Group is managed by a regional tax manager alongside the UK Country CFO, Financial Accounting manager and our outsourced partner. They oversee the UK Tax compliance work, Tax Accounting & Reporting, Corporate Tax audits and Transfer Pricing Policy. Nokia UK also has a wider integral support network from SSO Central hubs, Regional finance, a dedicated centre of excellence based in India and global based teams reporting out of headquarters in Finland. The Group’s tax strategy aligns with the wider Nokia risk and control framework.

Tax Risk Management

There are a variety of closely monitored and controlled tax risks that the group faces, these are as follows:

  • Compliance and Reporting

Managed by ensuring adequately qualified staff are employed as well as gaining advice from external advisors, alongside a strong internal control framework.

  • Changes in legislation

The UK Nokia Group monitors legislation with quarterly tax questionnaires in which the UK Regional Tax Manager identifies any changes in legislation. External advisors are used when appropriate to support. 

  • Transactional Risk

The UK Nokia Group companies engage in international intercompany transactions. These transactions are closely monitored and transacted from a tax perspective on an “arm’s length” basis. These transactions are audited and must maintain compliance with the Group’s transfer pricing policy. This policy is based on the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations issued by the Organisation for Economic Cooperation and Development (OECD). 

  • Reputational Risk

The UK Nokia Group has a code of conduct directed at protecting its mission statement, whilst complying to all local laws. The code of conduct is contractual upon employment and applies to all employees of Nokia UK. This code of conduct ensures employees conform to, “be proud not only of what we achieve but also of the way we achieve it”. 

  • Merger and Acquisitions

The Tax Group is a key stakeholder in any project, providing necessary advice and undertaking appropriate due diligence. No entity is acquired or disposed of without the Tax Team’s involvement.

Attitude towards Tax Planning & Risk Appetite

The foundation of our tax strategy is to pay the right amount of tax that is legally due in the correct jurisdiction. Furthermore, we observe all applicable rules and regulations in every country where we operate, and we follow the rules set by the relevant authorities.

Tax planning issues are reviewed consistently within the UK and with the Europe Tax Head in the early stages of any projects, following through to their conclusion. When needed we involve external resource to propose tax solutions with the internal tax department confirming the viability of the solution. Well documented materials are then produced and stored to ensure full transparency.

Nokia UK’s appetite for tax risk is low and our operations are based on firm principles, in-line with Group policy and tax legislation. External advice is taken where required and appropriate. 

Relationship with HMRC

Under UK tax legislation Nokia UK Limited, the UK Nokia Group’s largest trading entity, is defined as a Large Business; Thus, HMRC has allocated the group a CCM. The CCM manages the relationship with the most complex issues to improve the overall process.

The UK Nokia Group has an open and honest approach towards this relationship, committing to a transparent and timely approach to all tax matters. The UK Nokia Group’s aim is to be as low risk as possible.


Grant Griffiths, UK&I Regional Tax Manager, UK Nokia Group