The basic rule is that all Norwegian companies and foreign enterprises conducting business activities in Norway are subject to Norwegian corporate tax.
Anyone that conduct business activities in Norway is liable to register the company with the Norwegian authorities. This also applies even though the activities are not performed by the company itself, i.e. if the entire assignment is contracted out to subcontracts.
In many cases it is difficult to establish whether a foreign company must register for VAT in Norway. Is there a sufficiently strong connection between your business and Norway to trigger registration obligations?
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.
The Norwegian Tax Administration performs identity controls of foreign employees in Norway. This means that all foreigners working onshore in Norway are required to meet at a tax office to verify their identity.
Do you have undeclared assets or income abroad? Now is the right time to apply for a voluntary correction.
Do you have employees working in Norway?
Foreign enterprises with business activities in Norway are obligated to declare employment – and income information for personnel working in Norway. This also applies to personnel who are non-taxable to Norway.
Topics: Corporate Taxes
Non-Norwegian enterprises doing business in Norway will find that the basic Norwegian compliance obligations are rather burdensome, and failure to comply commonly results in severe sanctions. As always, it is better to do the right things from the beginning than to tidy up afterwards.