Tax registration and reporting requirements in Norway

Typical pitfalls when foreigners are particiating in projects in Norway:

Quick Facts about Norwegian Tax Law:

 

  • Employees are not registered with authorities or have the appropriate permits as they are wrongly considered to be in Norway on a business trip!
  • The work performed by the employees on behalf of the company does not lead to a permanent establishment for the company.
  • The work performed in Norway does not lead to an obligation to register for VAT purposes.
  • The Norwegian contractor is not aware of the liabilities they may incur!
  • The costs incurred due to legal obligations are not reckoned with!

 

 

  • Permanent Establishment in Norway will result in an obligation to file a company tax return, a tax liability for the company and personnel.
  • Companies sending employees to work in Norway on their behalf will need to register in the Company Registry in order to obtain a registration number.
  • Tax and legal assistance is often necessary in order to be compliant..
  • The taxable salary level required when a residence permit is obligatory is NOK  year for a person with a bachelor degree and NOK  year for masters degree.
  • Registration with the tax authorities is required for employees even though it is clear that tax is not payable for foreign employees whom stays less than 183 days solely on a project run or under the instruction of  a foreign sub-contractor whom does not have a PE in Norway.

When partaking in a project in Norway we recommend you evaluate:

  1. Will the tasks performed be considered work or is it business trips
  2. If yes, will the workers need a residence permit or a visa
  3. If they need a permit; are we providing them with sufficient salary and what other employee requirements do we need to meet to be in compliance with Norwegian law?
  4. If the workers are not on a business trip; whom may help us register with the Norwegian company registry?
  5. whom shall assis with the tax reporting for the employees?
  6. If yes, will the work result in a permanent establishment for the company?
  7. Will the work result in an obligation to pay tax for the employees?
  8. Will the work result in an obligation to pay social security contribution for the employees or may we obtain an exemption?
  9. And what are the consequences for the employees if tax is already being withheld in the home country?
  10. Whom shall help us withhold and pay the tax and social security contributions?
  11. How do we register for VAT purposes and whom shall assist us?
  12. Do the employees need assistance with tax returns in Norway
  13. Should the employees obtain assistance in their home country in order to avoid double taxation
  14. If the company obtains a permanent establishment in Norway, what consequences will this have for the company’s filing and whom shall assist us?

Tax and social security matters related to employment

Malm has several years of experience as an external and internal advisor to HR departments in international firms. With Malm’s expertise you will obtain valuable advice regarding employment related matters such as tax compliance, social security compliance, payroll and reporting requirements in Norway.

Assistance with employment law and employment related matters

In addition to assisting clients resolving controversies with Norwegian Tax authorities and represent clients in litigation before the Norwegian courts attorney Malm may assist with developing salary packaging, solve global mobility issues, perform payroll and develop employee share schemes. Malm may also assist with conforming  the structure of employee benefits, equity incentives, executive compensation and retirement planning.

Malm may perform the work or assist your in-house team with technical advice, implementation of strategies and or participate in strategic review of systems and processes.

Legal assistance in tax disputes, tax appeals and tax litigation in Norway

Malm Law Firm manage all stages of tax disputes, including audits, administrative appeals and litigation. When the stakes are large and the Norwegian Tax law is unclear, Malm Law Firm obtain (bindende forhåndsbeskjed) from the Norwegian Tax authorities on behalf of our clients.