The Norwegian organiser must deduct tax before the fee, etc. is paid. If there is no Norwegian organiser, the party that provides space for the event may be obliged to deduct tax. This only applies when the provider of the space has access to the income from the event either through ticket sales or in some other way. In other cases, the artist themselves will be liable to pay the tax. A statement of income must be provided and tax must be calculated using a specific form for reporting deductions (RF-1092).
Tax must be deducted and paid on each payment. The artist must have a copy of the statement which is sent to the tax authorities. The tax must be paid to the Skatteoppkrever utland (International Tax Collector).
If too little tax is deducted and paid, the artist themselves and the party that is liable for payroll withholding tax will be liable for the shortfall. If too much tax is deducted and paid, the artist will be entitled to a refund for the overpaid amount.
The tax basis
All financial fees earned in connection with activity as an artist, sportsperson, etc. in Norway are subject to tax, regardless of whether payment is made before, during or after the period of residence in Norway. This also applies to fees in the form of payments in kind, such as prizes.
When the artist themselves or a foreign organiser is responsible for the event and the artist has to pay the tax, the income must be determined on the basis of ticket revenues or some other fee for the performance.
When the tax basis includes a payment in kind and no cash benefit is given to cover the tax at the same time, the artist must pay a sufficiently large amount to the party that is responsible for paying the tax to cover the tax payment.
The coverage of costs must be included in the tax basis, with the exception of the coverage of documented expenses for transport, board and lodging in connection with the event in Norway. This also applies to the coverage of such expenses for foreign employees who participate in the travel. If the artist covers expenses for transport, board and lodging, the tax basis must be reduced by the total of the documented expenses. If it cannot be documented how much of the expenses are linked to the event in Norway, the deduction is limited to 5 percent of the gross revenues which are earned in Norway in connection with the event concerned. The tax basis must also be reduced by any agent commission that the artist has paid to the agent who established direct contact with the organiser of the event, etc. in Norway.
Other expenses are not deductible.
If the artist is unable to document their expenses for travel via their own means of transport or for board for themselves and any foreign employees, but it can be substantiated that such expenses have been incurred, the artist may be granted a deduction according to special rates. These rates are stipulated every year. In 2016, an artist can be granted a deduction for expenses for travel via their own means of transport at the rate of NOK 3.80 per kilometre for up to 10,000 kilometres and at the rate of NOK 3.45 per kilometre over 10,000 kilometres. The deduction rates for board expenses per day in 2016 are:
- Stays at a hotel - NOK 710 / 568
- Stays at a boarding house - NOK 307
- Stays in a bedsit/Portacabin/apartment with cooking facilities NOK 200
The rate of NOK 568 applies to hotel stays when a deduction is also given for lodging expenses including breakfast or when lodging expenses are refunded against receipts. The rate of NOK 200 also applies when the artist does not substantiate their role in the event arrangements.
If the artists claims a deduction for expenses for travel, board and lodging and/or agent commission, the expenses must be entered in the statement that is sent to Skatteoppkrever utland, kommune 2312 sokkel/utland. The artist must therefore ensure that the party that is liable to pay the tax is informed of these expenses, so that the deductions can be taken into account in the basis for calculating the tax. All vouchers which document actual expenses for which a deduction is being claimed must be enclosed with the statement that is sent to the tax authorities.
When the artist claims a deduction for substantiated expenses according to stipulated rates, they must be able to present an updated list of the arrangements that the artist was responsible for in connection with the event in Norway when asked to do so. The list must state the date of departure and return, the date of arrival in and departure from Norway, the mode of travel and route, and the name and address of the accommodation. The list must also state whether the accommodation used is a hotel, boarding house or other.