If you pay salary to one person amounting to NOK 6,000 or less during a particular year, this salary will be tax-free for the person concerned. The tax exemption applies to all types of work in the home when it is not carried out as part of a commercial enterprise. In such cases, you can pay the salary without deducting tax. However, you must still complete and give a copy of the simplified submission to the worker for each payment, but you can choose if you want to submit it to the tax authorities.
A number of small payments to the same person can amount to more than NOK 6,000 in total annually. If the worker's salary during the year exceeds this threshold, the total payment will become taxable and must be reported as salary. All the completed submissions that have not previously been submitted must then be submitted.
The threshold of NOK 6,000 per person (recipient) applies to the household. This is because payments for private work assignments linked to a home or holiday home are normally considered to have been paid on behalf of the collective household. Household members can therefore not individually pay NOK 6,000 to a single person and at the same claim exemption from the obligation to submit the simplified notification. However, exemptions may apply in cases where a fee is paid for work on a free-standing building which one of the household members has an exclusive usufruct for and which forms part of that person's home/holiday home. In this case, the threshold of NOK 6,000 will apply specifically to this household member.
The tax exemption for salary payments of up to NOK 6,000 per person (recipient) is an independent scheme which is separate from the employer's national insurance contribution exemption for salary payments of up to NOK 60,000 per household. You must therefore also calculate employer's national insurance contributions on payments of less than NOK 6,000 when the total salary paid to a number of workers during the year amounts to more than NOK 60,000. Salary for work that is not covered by the simplified scheme also triggers employer's national insurance contributions even if the salary is tax-free because of the amount concerned.