Allowance for board subject to withholding tax for foreign employees staying in Norway
Concerns allowance for board subject to withholding tax for foreign employees staying in Norway.
Brief information about allowance for board subject to withholding tax for foreign employees staying in Norway
Specify “allowance and reimbursement of expenses for board subject to withholding tax paid in connection with periods of work in Norway”.
The allowance is subject to withholding tax for foreign employees who
- have a tax deduction card with the standard allowance,
- are foreign employees who are part of PAYE scheme for foreign workers
- are resident for tax purposes in Norway and not entitled to deductions for extra costs incurred through commuting between a foreign country and Norway, or
- have limited tax liability in Norway and do not meet the requirements for commuter status.
The information you must provide
| Amount | NOK x |
| Type of salary or benefit | Expense allowance, work stay board |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax and contribution rules | If relevant |
Additional information: |
|
| Description | Foreign national staying in Norway |
Amount
Specify the gross amount.
Type of salary or benefit
Specify “expense allowance” and “work stay board”.
Subject to withholding tax
The benefit must always be specified as subject to withholding tax.
You do not deduct withholding tax if the amount to be deducted is less than the minimum thresholds for withholding tax.
Basis for employer's national insurance contributions
You must calculate employer’s national insurance contributions on this benefit.
Exemption:
You don't have to calculate employer’s national insurance contributions when the income recipient:
- is covered by the national insurance legislation of another country in accordance with a convention or the EEA Agreement
- is a foreign employee who is not a member of the Norwegian National Insurance scheme and who works on the Norwegian continental shelf or in Norwegian territorial waters
In some cases, the employee has a confirmation of a membership that is being maintained by their national insurance authority (A1 or another form). The Labour and Welfare Administration’s division for membership and contributions to the Norwegian National Insurance Scheme, NAV Medlemskap og avgift, will consider all documentation, register any exceptions from membership in the National Insurance Scheme and the relevant periods of exception, as well as whether the exception applies to all or parts of the National Insurance Scheme. Registered exceptions from membership in the Norwegian National Insurance Scheme are sendt electronically from NAV to the Tax Administration.
Only exceptions registered with the Tax Administration will allow the employer to omit calculation of employer's national insurance contributions for an employee.
The Tax Administration may assess employer's national insurance contributions if there is no exception registered for the employee, and if the reported salary or benefit is not included in the taxable basis.
The employer or the employee can contact NAV regarding questions about whether an exception from the membership in the National Insurance Scheme is registered.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rules:
This tax and contribution rule concerns:
- income recipients who are covered by the Svalbard Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Svalbard” for salary and other benefits.
You must also specify "Svalbard" for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Svalbard regarding trade union fees, premium for pension scheme, National Insurance premiums and education and development fund premiums and portacabin rent.
This tax and contribution rule concerns:
- seafarers who are entitled to a special deduction (seafarer's allowance) from their salary and other benefits,
- when it is earned through work on-board a vessel in service.
If the income recipient fulfils the relevant conditions, you must specify “special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
Do not use these tax and contribution rules if the employee is part of PAYE scheme for foreign workers.
Additional information
Specify the description “foreign national staying in Norway”.
Earnings period (voluntary)
You can specify the earnings period for all types of salary and other benefits in the a-melding. Both the start date and the end date of the earnings period must fall within the same reporting month.
See also the explanatory information concerning the earnings period
When to report
Report the benefit in the calendar month in which you paid the amount.
Correcting errors
| MAGNET_EDAG-114 Invalid value |
| MAGNET_EDAG-114B Invalid value for this calendar month |
| MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
| MAGNET_EDAG-230B Invalid value |
| MAGNET_EDAG-243 Information on earnings period is invalid |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
NAV uses information concerning salary and other benefits to calculate unemployment benefits and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments.
The Norwegian Tax Administration uses information concerning allowances for board subject to withholding tax to pre-complete the tax return and for control purposes.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
