What do I do when I have had work performed by an employee from an EU/EEA country?

How will tax be paid?

Answer: If you pay a person to paint your house, that person must pay tax in Norway.

Does the employee need to have a tax deduction card?

Answer: Yes, the employee must have a tax deduction card and you must deduct tax.

Can I arrange to obtain the tax deduction card?

Answer: No, the employee himself must visit the tax office to obtain a tax deduction card. He must take along his passport or national ID card containing a photograph and indicating nationality and gender. He must also document that he needs a tax deduction card, for example with a contract of employment or written offer of work.

See which tax offices can you visit.

Can the employee work tax-free up to certain amount?

Answer: If you pay up to NOK 1,000 to a person in the course of a year, the pay is tax-free. This amount applies to both pay in cash and other benefits such as board and lodging. If a person performs work in a private home – e.g. house-painting or similar – and the person is not running a business, the threshold is NOK 6,000.

Do the Norwegian rules on working in homes also apply to foreign employees?

Answer: Yes, the Norwegian rules on working in the home apply to both Norwegian and foreign employees.

Does the employee have to submit a tax return in Norway?

Answer: Yes, everyone who receives employment income in Norway receives a pre-completed tax return from the tax office. The employee must check, and if necessary correct, the details concerning income and allowances. The employee must enter a standard allowance for foreign employees or commuter allowance if he is entitled to one.

If the details in the tax return are correct, he does not need to send it back.

A person earning less than NOK 1,000 from each employer will not receive a tax return.

What about if the employer is self-employed?

Answer: See the question under National Insurance and certificates of pay and tax deducted.

I want to put up a garage and I've met a foreigner who says he runs his own joinery company in his home country. He offers to put up the garage for me while he is in Norway. He does not intend to get other people from his country to put up the garage. What do I need to look out for?

Answer: In this case, it is important to ensure that this person does actually run such a business in his home country. If he does not, then he is an employee and so must pay tax in Norway. In that case, you need to deduct tax from the pay and follow the rules that apply to employers. You should therefore ask for documentation that the person runs his own business in his home country. This might take the form of written confirmation from the tax authorities in the country. If he is unable to obtain such confirmation in English, you will need to get it translated.