Foreign businesses with activities in Norway are required to report their assignments and employees to Norwegian tax authorities. The report is filed to the Central Office – Foreign Tax Affairs (COFTA) through an online portal, or by completing and submitting a paper form named RF-1199 for reporting of contract and RF-1198 for reporting of employees.
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The purpose of the report is to make sure that the tax authorities receive information about all contracts and subcontracts awarded to enterprises resident abroad, provided that the contract is performed:
- On a site for building and assembly work in Norway, or
- On a site that is under the client’s control in Norway, or
- On the Norwegian continental shelf
For foreign business that need ID cards for construction sites for their employees, it is important to get registered and file RF-1199 and RF-1198 or an online report as soon as possible. Norwegian authorities will simply refuse to issue the ID cards until the report has been filed. This in turn, may lead to the employees being rejected entry to the construction site.
Also read: ID control for foreign employees in Norway
What should be reported on the RF-1199 and RF-1198?
Foreign companies with activities in Norway must report every single assignment in Norway. The information they need to provide for each assignment is generally:
- The name and organization number of the client
- The expected start date and end date of the assignment
- The municipality and place of the assignment
- The contract number for the assignment
- The names, marital statuses and addresses of the employees working on the assignment
- The first and last day of work for each employee working on the assignment
The enterprise awarding the contract, must also file a report to Norwegian tax authorities. However, the awarding enterprise does not need to report the employees of the foreign company but is required to report other information such as the contract value.
Reporting deadline and fee
The report must be filed within 14 days of the commencement of work on the assignment. As a first step before filing RF-1199 and RF-1198, foreign companies should get registered with the Brønnøysund Registre Centre (Central Coordinating Register for Legal Entities (CCR)). Such registration may take a while. Thus, foreign companies should start the process of getting registered as early as possible to file RF-1199 and RF-1198 on time.
Norwegian tax authorities have been known to demand fees from foreign companies for non-compliance or late filing. In 2015, however, our law firm filed a complaint to the EFTA Surveillance Authority (ESA) arguing that the practice of levying these fees violate EU law. ESA has since notified the Norwegian government that they consider the fees as a discriminatory practice under EU law.
Nevertheless, we recommend all foreign business with an assignment in Norway to file RF-1199 and RF-1198 or an online report within the due date.
For a practical overview of the required actions applicable for foreign enterprises with business operations in Norway, download our guide: