Set up a withholding tax account - foreign self-employed persons

Companies with employees that carry on activity in Norway must generally have a withholding tax account in a Norwegian bank or a Norwegian branch of a foreign bank. If your company doesn't have a withholding tax account, the company must have a bank guarantee to cover the withholding tax.

The tax deduction cards shows the amount that you as an employer must deduct from your employees' salary payments. Foreign employees who reside temporarily in Norway must have a tax deduction card for foreign citizens.

Employer's responsibility

As an employer, you must deduct withholding tax using the relevant table or rates for each salary payment, regardless of the tax liability.

You must deposit the withholding tax in the withholding tax account on the first working day after the salary payment. If the balance in the account is sufficient to cover the ongoing deduction liability at all times, ongoing transfers into the account won't be necessary.

As an employer, you are responsible for ensuring that withholding tax is deducted and paid, and the company may be held financially liable if the deduction is not carried out. Obligations and liabilities under the Tax Payment Act may also be imposed on the company's client in Norway. In connection with the hire of labour, both the client and the contractor have employer obligations under the Tax Payment Act. The joint and several liability means that the tax authorities can approach both the client and/or the contractor when collecting taxes.

Sole proprietorships – ENK

The same rules apply if a sole proprietorship has employees.