Foreign labour

Natural persons are considered to be resident for tax purposes on Svalbard under the Svalbard Tax Act, Section 2-1 when the person concerned has taken up permanent residence there. If the period of residence lasts at least 12 months, the person will be considered resident from the start of the period of residence. Short periods of absence from Svalbard, such as holiday, will not interrupt the period of residence. The Tax Act, Section 2-1 second paragraph, concerning conditions for liability to pay tax to Norway upon immigration will not apply in connection with the assessment of whether or not a person should be deemed resident for tax purposes on Svalbard; see the Svalbard Tax Act, Section 3-1 second paragraph.

People who are resident for tax purposes on Svalbard under the Svalbard Tax Act, Section 2-1 will generally be deemed equivalent to persons resident abroad; see Section 2-35 second paragraph of the Tax Act. A person who takes up permanent residence on Svalbard comes under the rules concerning the cessation of tax liability upon emigration in the Tax Act, Section 2-1 third paragraph. The period of residence on Svalbard is deemed equivalent to residence abroad in relation to these rules. This may be of significance if, after the period of residence on Svalbard, the person concerned moves to a third state, and other conditions in Section 2-1 third paragraph of the Tax Act concerning the cessation of tax liability to the mainland are met during the period when the person concerned was resident on Svalbard.

Tax deductions and reporting

Employers must deduct tax and employer's National Insurance contributions from salary, etc. which will be taxed under the Act on tax to Svalbard (the Svalbard Tax Act). This applies to salary or other remuneration for work for residents on Svalbard, and in connection with work-related stays lasting at least 30 consecutive days.

For a more detailed description of the scheme relating to deductions from income which is taxed under the Act on tax to Svalbard (the Svalbard Tax Act), see the Svalbard Tax Return 2016.

Salary, etc. which will be taxed under the Act on tax to Svalbard (the Svalbard Tax Act) must be reported via an a-melding. The reporting of income which is taxed in accordance with the Svalbard Taxation Act follows the same scheme as used for the mainland. Information concerning PAYE deductions must be reported monthly by the fifth of the following month.

See also Guidance for the a-melding.

Exemption from employer’s National Insurance contributions

For employers domiciled on Svalbard, the rate for employer’s National Insurance contributions is 0 percent when the work is performed on Svalbard. This will apply even if an employee is not resident on Svalbard for long enough for the income for work performed there to be taxable under the Svalbard Tax Act.

Even if the employer is not domiciled on Svalbard, the rate for employer's National Insurance contributions will be 0 percent on salary and other remunerations which will be taxed under the Svalbard Tax Act.

See the Svalbard Tax Return 2016. See also the Directorate of Taxes’ report concerning employer’s National Insurance contributions to the National Insurance scheme for 2016.