Salary reporting generally takes place on a monthly basis via the a-ordning scheme.
Certain exceptions from the reporting obligation apply for smaller amounts.
Special rules also apply concerning payments made to individuals who are resident abroad, as well as concerning payments made by employers which are domiciled (resident) abroad.
Simplified reporting arrangements apply to work assignments linked to a home or holiday property. Simplified reporting arrangements also apply to charitable and benevolent organisations.
The information that is reported via the a-melding will be used as a basis for the tax assessment and the taxpayer’s settlement if the Norwegian Tax Administration has no tenable information otherwise. It is therefore important that this information is accurate.
Do I have a reporting obligation?
The reporting obligation applies to owners of sole proprietorships and general managers of companies, associations, institutions and entities. If there is no general manager, the obligation rests with the chairman of the board of directors. If the employer is not liable to pay tax, the reporting obligation also rests with the elected auditor.
In the case of a bankruptcy estate, the estate administrator’s reporting obligation is limited to payments made after the initiation of bankruptcy proceedings. The reporting obligation also covers salaries and dividends from salary claims earned before the bankruptcy arose and holiday pay during the period of notice in cases where this is considered to be a priority receivable in the estate.
For payments made prior to the initiation of bankruptcy proceedings, bankruptcy debtors are responsible for ensuring that certificates of pay and tax deducted are issued.
In the case of hired labour, the contractor and client are jointly and severally responsible for fulfilling the reporting obligation.
What benefits must be reported?
The reporting obligation covers many benefits which are paid or otherwise provided during a calendar month. Section 5-2 of the Tax Assessment Act stipulates which benefits must be reported. The main rule is that all benefits must be reported regardless of whether they are tax-free or not subject to withholding tax. The reporting obligation for certain benefits has been imposed for control or statistical purposes.
Settlements for work assignments in the form of goods and services must also be included in certificates of pay and tax deducted. Basic gross proceeds should not be reported.
The reporting obligation primarily covers salary payments and other remuneration for work. As a general rule, all benefits that are taxable under Section 5-10 of the Tax Act; see Section 5-1. The reporting obligation also applies to certain expense refunds and allowances, even if they are entirely or partly considered to constitute tax-free reimbursement for service expenses.
Examples of benefits which are reportable:
- Salary payments, including fixed salary, hourly wages, bonuses, severance pay, holiday pay.
- Payments in kind, including telephone, free use of a car, free accommodation, allocation of shares (possibly at a reduced price).
- Expense reimbursements, including the reimbursement of expenses for travel, meals and accommodation.
The reporting obligation also applies to pension payments, disability benefit payments under Chapter 12 of the National Insurance Act, and disability benefit payments from other schemes. The salary reporting obligation also applies to certain other benefits.
Benefits from surrendered property in forestry and agriculture are also covered by the salary reporting obligation. Benefits from surrendered property must only be reported annually.
The salary reporting obligation also applies to fees and other remuneration paid to creators of intellectual property. Such benefits must be reported via the a-melding; even fees such as these are considered to constitute business income in some cases.
The reporting obligation also applies to certain payments made to self-employed persons without a fixed place of business. Such reporting takes place annually via a separate statement, and not via the a-melding.
Shares of catches and proceeds of sales in the fishing and hunting industry must also be reported via the a-ordning scheme. Separate guidelines have been issued for the reporting of shares of catches and proceeds of sales, and different deadlines apply to reporting, among other things.