Taxnorway - International pages

About net salary agreements

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A net salary agreement is an agreement between an employer and an employee, providing that the employer has full responsibility for paying to the tax authorities all necessary taxes on behalf of the employee.

If such an arrangement has been agreed, the employer must calculate the employee's taxable gross income by a process of “grossing up” the employee's net salary and taxable remunerations and benefits in kind. 

Note that according to the Norwegian Tax Act, the final responsibility rests with the employee to pay the taxes, and correct and submit the tax return form to the Norwegian Tax Authorities. A net salary agreement between an employer and an employee cannot overrule this fact.

The employer is responsible for submitting The End of Year Certificate with a correct calculation of the tax liable income. The basis for the calculation of taxable gross income has to consist of paid salary, tax liable remunerations and benefits in kind. The Norwegian Tax Authority has drawn up tables for correct calculations of the gross income (link is only in Norwegian).

Codes to be used in the end of year certificate: 961/971