P tal (Faroese P Number)
A p-tal, where "p" denotes person and "tal" signifies number, is a vital personal identification number used by authorities in the Faroe Islands, particularly in matters such as taxation. Issued by Landsfólkayvirlitið under the oversight of the Faroese Ministry of the Interior, this nine-digit code incorporates the first six digits as the individual's date of birth, with the remaining three being private.
Individuals born in or relocating to the Faroe Islands are allocated a standard p-tal, essential for receiving wages. Additionally, those working in the Faroes for over 180 days annually are considered immigrants and obtain a standard p-tal upon registration at the National Registry. Conversely, for shorter work periods, a temporary p-tal is required, obtained through application to TAKS or by employer application. Ensure timely application for the temporary p-tal, ideally 14 days before wages are due. Once acquired, a temporary p-tal remains in the system, requiring reactivation for subsequent work periods in the Faroes.
In situations where an individual is not a resident of the Faroe Islands but is deemed taxable by the Faroese Tax Administration—such as in the role of an employee—an Identification number is assigned. The format of this Identification number shares similarities with the P number issued by the National Registration Office, though it's not identical. Both the P number and the Identification number are distinct and permanent, not subject to renewal.
Vinnuskráin serves as TAKS' internal registry for businesses and associations. Upon registration in Vinnuskráin, you receive a V-tal, abbreviated for vinnutal, equivalent to the commonly referred-to VAT number in English. This unique identifier is essential for business and taxation purposes, ensuring seamless recognition and compliance within the system.
Foreign Companies in the Faroe Islands
Foreign companies operating in the Faroe Islands must adhere to specific regulations, contingent on whether they establish a permanent presence in the region. For companies planning an engagement exceeding 12 months, the establishment of a permanent presence is mandatory. To initiate this process, a registration form, accompanied by comprehensive details about the company's Faroese operations, should be submitted to TAKS. Additionally, copies of the company's registration in its home country must be enclosed, and the registration form must bear the signature of the relevant manager or guarantor.
For foreign companies without a permanent establishment in the Faroe Islands, compliance with the VAT Act is crucial. Such companies, not under the jurisdiction of the Faroes and not categorized as Danish state institutions, are required to have a representative in the Faroes. The representative and the foreign company share joint responsibility, necessitating the completion and signing of a registration form. The representative, in turn, must fill out the "Representative in the Faroe Islands on behalf of a foreign company" form, with the option to do so independently if possessing a power of attorney. In such cases, the power of attorney should be included with the submission.
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