Tax-free organisations
Applies to the reporting obligation and the tax and contribution rule for tax-free organisations.
Brief information about the reporting obligation for tax-free organisations
If you submit an a-melding for a tax-free organisation in accordance with Section 2-32, subsection 1, of the Tax Act, the reporting obligation applies when salary and other benefits paid to an employee exceed NOK 10,000 during the year. "Other benefits" initially include all types of expense allowance subject to withholding tax and taxable benefits, such as car allowances subject to withholding tax, free board and free lodging.
If the total payment does not exceed the reporting obligation threshold, you don't need to specify salary or other benefits in the a-melding.
See also the explanatory information concerning tax-free organisations
Two ways for tax-free organisations to provide information
For tax-free organisations, you can provide information about salary and other benefits in the a-melding in two different ways.
- You can use the “Tax-free organisation” tax and contribution rule from the first krone, or
- not provide information about payments until the threshold has been reached. When the threshold amount is exceeded, you must specify all payments without the tax and contribution rule.
Regardless of the method you use, you must calculate employer’s national insurance contributions from the first krone.
If you use the tax and contribution rule
If you use the “Tax-free organisation” tax and contribution rule, you won't need to consider whether you will pass the reporting obligation threshold of NOK 10,000 during the year. If you use this rule, you must do so from the first krone and for all payments made throughout the year.
You must mark all salary and other benefits to which you can apply the rule with “Tax-free organisation”.
Example
Anne works for a tax-free organisation. The tax-free organisation specifies the payments made to Anne from the first krone in the a-melding.
| A-melding for January | |
| Income recipient | Anne |
| Amount | NOK 9,000 |
| Type of salary or benefit | Cash benefit, fixed salary |
| Tax and contribution rule | Tax-free organisation |
They also enter all the other mandatory information.
| A-melding for February | |
| Income recipient | Anne |
| Amount | NOK 9,000 |
| Type of salary or benefit | Cash benefit, fixed salary |
| Tax and contribution rule | Tax-free organisation |
They also enter all the other mandatory information.
If you don't use the tax and contribution rule
If you don't use this rule, you must not specify salary and other benefits for the employee while the amount is below the reporting obligation threshold. If you pay an employee more than NOK 10,000 during the year, you must specify all salary and other benefits without applying the “Tax-free organisation” tax and contribution rule.
In the month in which the employee’s salary and other benefits pass the threshold, you must specify the full amount in the a-melding.
Note!
You must pay employer’s national insurance contributions even if the amount is below the reporting obligation threshold. Remember to specify this in the contribution basis.
Example
Peter works for a tax-free organisation. The tax-free organisation specifies payments made to Peter after the reporting obligation threshold has been passed. Peter received NOK 10,000 in salary in April. In May, he receives NOK 3,000.
| A-melding for April | |
| Basis for employer's national insurance contributions | NOK 10,000 |
They also enter all the other obligatory information.
Note that when the amount is below the reporting obligation threshold, the employment won't be covered by the obligation to report information to the Aa register. The reporting obligation is only triggered when the threshold amount is exceeded.
| A-melding for May | |
| Basis for employer's national insurance contributions | NOK 3,000 |
| Income recipient | Peter |
| Amount | NOK 13,000 |
| Type of salary or benefit | Cash benefit, fixed salary |
They also enter all the other obligatory information.
The tax-free organisation will receive the error message MAGNET_EDAG 184 for the a-meldings which concern April and May. This is because the contribution basis and Peter's income don't match. This is OK, and the organisation doesn't have to correct this.
Benefits that the tax and contribution rule covers
You can only apply the “Tax-free organisation” tax and contribution rule to certain types of salary and other benefits.
When you use the tax and contribution rule, you must specify the benefit as “Tax-free organisation”.
See summary of which benefits are covered by the tax and contribution rule
What about withholding tax
You must specify all deductions of withholding tax that you have made. If the total benefits paid during the year are less than NOK 10,000, you should not make any deductions. If the threshold is passed during the year, you must make deductions if there are any cash benefits to make deductions from.
What about employer’s national insurance contributions
You must pay employer’s national insurance contributions on all salary and other benefits that you pay. This applies regardless of whether or not the amounts exceed the reporting obligation threshold.
If you have waited to specify salary and benefits until the reporting obligation threshold has been passed, you may receive error message MAGNET_EDAG 184 in the a-melding for the month in which you pass the threshold. This is because you have specified the contribution basis on an ongoing basis, while salary and benefits were not specified until the month in which the threshold was passed. As a result, the contribution basis and salary and benefits subject to employer’s national insurance contributions will not match. This is OK and you don't need to correct this.
What we use the information for
NAV uses information concerning salary and benefits to calculate unemployment benefit and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments.
The Norwegian Tax Administration uses the information to ensure that employees who have earned less than the reporting obligation threshold don't pay tax on the income.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
