Holiday pay earned abroad in previous years
Concerns holiday pay earned abroad in previous years.
Brief information concerning holiday pay earned abroad in previous years
Report holiday pay which is earned abroad, but not paid until after the period of stay abroad has ended. It is necessary to specify the amount under a separate description which will ensure that the amount is taxed correctly.
Exceptions
There is no reporting obligation when the income recipient:
- is not resident in Norway for tax purposes,
- and the payment is to be charged to a fixed operating base belonging to the employer in a country with which Norway has a tax treaty.
In practice, the Norwegian tax authorities assume that there is no reporting obligation for salary and other remuneration for work performed outside Norwegian territory if the employer is not domiciled in Norway for tax purposes.
The information you must provide
The information you must provide
| Amount | x NOK |
| Type of salary or benefit | Cash benefit, holiday pay |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax and contribution rules | If relevant |
| Additional information: | |
| From date to date | Period |
| Country of earnings | Country code |
| Earned on a continental shelf | Yes/No |
Amount
Specify the gross amount.
If the payment concerns several previous years, you must state an amount for each of the years concerned.
If the amount was earned in a number of countries, you must split the amount between each of the countries of earnings.
Type of salary or benefit
Specify “cash benefit” and “holiday pay”.
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.
You don't have to make withholding tax deductions from salary and allowances for work performed abroad by persons who are neither permanently nor temporarily resident in Norway when the right to receive the amount arises.
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:
- 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
Additional information
- Period
Specify the from date and to date of the period that the payment concerns. If the payment concerns several previous years, you must state an amount for each of the years concerned. - Country code
Specify the country code for the country in which the income was earned. If the amount was earned in a number of countries, it must be split between each of the countries concerned to ensure that the Norwegian Tax Administration knows which tax treaty will apply, which may be of importance as regards any reduction in Norwegian tax. - Earned on a continental shelf
You must state whether the income is earned on continental shelf or not.
Example
Kari earned holiday pay amounting to NOK 70,000 in Sweden during the period 1 January 2017 to 31 December 2017.
| Amount | 70,000 |
| Type of salary or benefit | Cash benefit, holiday pay |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes |
| Additional information | |
| From date to date | 01012017-31122017 |
| Country of earnings | SE |
| Earned on a continental shelf | No |
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 salary and other benefits to assess income. The amount is aggregated with other benefits and transferred to the tax return.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
