International pages

Employee

Businesses/self-employed persons

Guide for foreign employers and employees

1 Foreign entities – registering for an organisation number
1.1 Why do foreign entities need an organisation number?
1.2 How is an organisation number assigned?
1.3 Brønnøysund – contact information
2 Obligation to provide information pursuant to the Tax Assessment Act section 6-10
2.1 Who is obliged to provide information?
2.2 What types of assignment are subject to the obligation to provide information?
2.3 About which contractors and which employees is it necessary to provide information?
2.4 Obligation to provide information about subcontracts Procedure for reporting
2.4.1 Agreement between clients and contractors concerning who shall provide information
2.5 How shall reporting take place?
2.5.1 Deadlines
2.5.2 To whom shall the information be submitted
2.6 Sanctions for failure to comply with the obligation to provide information
3 Conditions for tax liability to Norway
3.1 Income from business activities
3.1.1 Norwegian tax legislation
3.1.1.1 The main rule
3.1.1.2 Limited tax liability, source tax liability
3.1.1.3 Special provisions for the Continental Shelf
3.1.2 Tax liability for a permanent establishment or exemption from taxation in Norway pursuant to tax treaties
3.1.2.1 Permanent establishment
3.1.2.2 Special provisions for the Continental Shelf
3.1.3 Income attributed to the permanent establishment
3.2 Income from employment
3.2.1 Norwegian tax legislation
3.2.1.1 The main rule
3.2.1.2 Limited tax liability to Norway
3.2.1.3 Work on the Continental Shelf
3.2.1.4 Moving from Norway
3.2.2 Exception from taxation to Norway as a result of a tax treaty signed by Norway
3.2.2.1 Tax liability for income from employment in Norway, the OECD Model Convention Article 15
3.3 The distinction between business activity and paid employment
3.4 Taxation of income from employment in Norway
3.4.1 The gross and net methods in connection with an employer’s coverage of travel expenses for commuting and travel to/from work
3.4.1.1 The net method
3.4.1.2 The gross method
3.4.2 Net pay arrangements
3.5 National Insurance contributions
3.6 Tax assessment and processing provisions
3.6.1 Duty to submit a tax return
3.6.1.1 Submission of tax return
3.6.2 Tax assessment and processing rules
3.6.3 Legal action
4 Payment, reporting and collection of taxes and indirect taxes
4.1 The payment of direct and indirect taxes – employees
4.2 The employer’s duties – deducting withholding tax and reporting of pay
4.2.1 Duty to withhold tax (payroll withholding tax)
4.2.2 Tax deduction cards
4.2.3 Employers’ deduction of withholding tax
4.2.4 Employers’ payment of payroll withholding tax and employer’s National Insurance contributions
4.2.5 Employers’ reporting of pay
4.2.5.1 The form "Lønns- og trekkoppgave" RF-1015 (certificate of pay and tax deducted, also called End of year Certificate)
4.2.5.2 Where to send the form "Lønns- og trekkoppgave" RF-1015
4.2.6 Sanctions
4.3 Self-employed persons
4.4 Payment of corporation tax
4.5 Nordic agreement concerning the collection and transfer of tax (the tax withholding agreement)
5 Obligation to keep accounts, auditing duty, and right of inspection
5.1 Obligation to keep accounts
5.2 Auditing
5.3 Tax inspection
6 The National Insurance Scheme
6.1 Compulsory membership of the National Insurance Scheme
6.1.1 Persons deemed, for National Insurance purposes, to be resident in Norway
6.1.2 Employees in Norway or on the Norwegian Continental Shelf
6.1.3 Self-employed persons
6.1.4 Seafarers
6.2 Obligation to pay National Insurance contributions
6.3 Obligation to pay employer’s National Insurance contributions – foreign employers
6.4 Exemption from compulsory membership in the National Insurance Scheme for foreign nationals staying temporarily in Norway
7 Seafarers who are tax resident abroad
7.1 The Central Office - Foreign Tax Affairs assesses foreign seafarers
7.2 Liability to pay tax
7.3 Moving from Norway
7.4 Reporting of seafarers
7.5 Duty to withhold tax (payroll withholding tax) etc.
7.6 Reporting of pay and other remuneration
7.7 Tax returns
7.8 National Insurance
7.9 Seafarers' deduction
8 Value added tax on foreign nationals’ activity in Norway
8.1 Value added tax
8.2 Foreign businesses
8.2.1 Foreign businesses that do not have turnover in Norway
8.2.2 Foreign businesses that have turnover in Norway
8.3 Business activity that is liable for VAT
8.4 Registration in the VAT Register
8.5 Obligations and rights as a result of registration in the VAT Register
8.6 Registration through a representative
8.7 Special rules for goods/services for use in offshore petroleum activity
9 About Altinn
9.1 What is Altinn?
9.2 Who can use Altinn?
9.2.1 Businesses
9.2.2 Private persons
9.3 Why choose Altinn?
9.4 Contact information

6.2 Obligation to pay National Insurance contributions

Members of the National Insurance Scheme must pay National Insurance contributions. National Insurance contributions are stipulated as a percentage of personal income pursuant to the Taxation Act sections 12-2 and 12-10, cf. the National Insurance Act section 23-3. The rate for National Insurance contributions are decided by the Storting (the Norwegian parliament) every year. For 2008 it is:

7.8% of pay and other personal income
11% of income from self-employment/business activities and other personal income

For employees, National Insurance contributions are normally included in the employer’s deduction of withholding tax and they are included in the deduction tables. National Insurance contributions for self-employed persons with an obligation to pay such contributions are included in the advance tax. If an employee is not taxed in Norway, the National Insurance contributions must be paid to the local Norwegian Labour and Welfare Service (NAV) office.

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International pages

Employee

Employers

Businesses/self-employed persons

Guide for foreign employers and employees

Contents

6.2 Obligation to pay National Insurance contributions

6.2 Obligation to pay National Insurance contributions