Working your way through a foreign tax system can be difficult and it triggers many questions. The most common questions are related to tax liability and level of taxation.
From 2019, a new and simplified tax scheme is available for foreign workers in Norway. The scheme is called PAYE (Pay As You Earn). Most foreign workers will fall under this scheme the first year they work in Norway.
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 employees working in Norway? If so then you should be aware of the extensive and mandatory protection employees are given according to the Norwegian Working Environment Act. These rules are particularly important when dealing with the dismissal of an employee.
Many foreign employers are surprised at the protection employees in Norway have. The Norwegian regulations are especially stringent when it comes to the mandatory system for holiday and holiday pay, the regulations relating to working hours and the dismissal rules. So how do you draft the employment contracts in order to preserve your freedom to manage?
Foreign businesses with activities in Norway are required to report their assignments and employees to Norwegian tax authorities. The report is filed 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.
Are you a foreign company, having employees working in Norway? Make sure you are compliant when calculating and paying the employer’s National Insurance contributions.
Whether you are planning a business trip to Norway, relocating or setting up a new business here, an understanding of the common Norwegian and of Norwegian business culture, could really help you off to a good start. This is key to quickly build a sustainable business and to settle in.
To be entitled to services from The National Insurance Scheme (NAV) in Norway you must have a compulsory membership, or you must be accepted as a voluntary member upon application. Examples of services provided through The National Insurance Scheme in Norway are treatment by a doctor, psychologist, sick pay, child benefit and pension.
Topics: Work in Norway
Moving to or from Norway triggers many tax questions. The most common questions are related to Norwegian resident criteria and tax return obligations.