|EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY|
|Tax rate||The Norwegian tax system has two bases of income. The ordinary income base is a net base. The tax on ordinary income is 24 percent for 2017.
In addition, we have the personal income base. This is a gross base for taxation. The top tax and the social security contributions for employees are based on this.
The top tax rates are as follows for 2018:
from NOK 169 000 : 1,4percent
from NOK 237 900: 3,3 percent
from NOK598 050: 12,4 percent
above NOK 962 050: 15,4 percent
Employee’s social security contribution is 8.2 percent of gross income.
|Tax period||Calender year|
|Tax residency / Domicile according to domestic law||An individual will be considered resident in Norway for tax purposes if any one of the following requirements is met.
The individual stays in Norway for more than 183 days in one or more periods during any 12-month period. Residency will take place from the income year for which the requirement is fulfilled.
The individual stays for one or more periods in Norway for more than 270 days during any 36-month period. Residency will take place from the income year for which the requirement is fulfilled.
|Tax registration||You are required to have a Norwegian idetification number and register for a tax deduction card.|
|Employment income definition||In principle, all types of remuneration and benefits received by an employee for services rendered in Norway constitute taxable income, regardless of where paid.|
|Examples of tax exemption|| Moving expenses from a foreign country to Norway when the move is initiated by employment in Norway.
Special regulations apply for commuters.
|Specific expatriate concession||A person moving to Norway may claim a special 10 percent standard deduction on income for the first two years’ tax assessments in Norway. The deduction is limited to NOK40,000 on gross income. In addition to the 10 percent standard deduction, a foreigner may claim deductions for membership expenses in the Norwegian Trade Union and in private Norwegian pension schemes.
However, instead of claiming the standard deduction, the person can choose to claim deduction for actual expenses.
|Income of board members||Depending on both the type of company and the functions performed in the company.|
|Tax returns||All individuals who are considered employees have to file a tax return by the end of April the year following the income year. A pre-filled return will be mailed to all taxpayers in the beginning of April. This return has to be checked, reviewed, and if necessary corrected by the taxpayer. The revised tax return has to be signed and returned to the tax authorities by 30 April .|
|Tax payments||Norway has a withholding tax system. The employer is obliged to withhold taxes in connection with payment of salary to the employee. The amount withheld is based on a tax card obtained by the employee from the local tax office. Withheld taxes have to be submitted to the tax collector on a bi-monthly basis. In June – October of the year following the income year, the individual will get his/her tax assessment. If the withheld amount is in excess of the tax assessed, the difference will be paid back to the individual, correspondingly if the assessed tax is in excess of the withheld amount, the balance has to be paid by the employee. Interest will be charged.|
|Employment income / income from board members||Art 15/16 Model OECD Tax treaties|
|INTERNATIONAL SOCIAL SECURITY|
|Cross border employments|
|Exception under Art 16 of Reg. 883/2004
and Art 17 of Reg. 1408/71
|Social Security Cost as % from gross salary and absolute amounts||An individual working in Norway is subject to Norwegian social security contributions. The normal rate for the employer is 14.1 percent on gross earnings. The employee’s contribution is 8.2 percent based on gross wages.
There are three exceptions to the payment of the social security contributions.
A person covered by the home country scheme and social security treaties may be wholly or partially exempt; Norway has entered the EU Social Security Agreement.
Furthermore, Norway has entered into several other social security treaties, for instance with Canada and Quebec, Australia, India and the U.S. These treaties may wholly or partially exempt both the employees and the employer from contribution to the Norwegian social security system.
A foreign employee from a country without a social security treaty with Norway may be exempted from contribution to the Norwegian social security system, if satisfactorily covered by a foreign social security system. An application must be filed.
In Norway, there is a mandatory occupational pension. This is paid by the employer and the minimum rate is 2 percent of gross income. Exceptions can be granted under certain conditions.
|Work permit||If you’re from the European Union (EU) or European Economic Area (EEA) you don’t need a permit to live, work or study in Norway. However, you do need to register your stay with the local police if you’re there for more than 3 months. Migration to Norway is regulated by the Norwegian Immigration Authorities (UDI). There are various different visa routes for workers, depending on your situation. If you’re coming to Norway to work in a professional capacity or to start your own business, the skilled workers visa route is commonly used.
Norway isn’t covered by the EU Blue Card scheme which applies in many other countries in Europe.
|Visa||EU and EEA nationals do not need a visa to enter into Norway.
Non EU, EEA nationals need a visa. The applications have to be lodged at the Norwegian consulate or embassy in the country of residence.
|Residency permits / registration certificate||EU and EEA nationals do not need a visa to enter into Norway.
Non EU nationals in general need to apply for a residency permit.
|Driving license||As a main rule, driving licences issued in EU/EEA countries can be used in Norway for as long as they are valid, and they can be exchanged for a Norwegian driving licence without any tests. The rules for driving licences issued in non-EU/EEA countries are stricter. Driving licences from most countries outside the EU/EEA can be used in Norway for up to three months. Driving licences from only a few of these countries can be exchanged for a Norwegian driving licence, provided you pass a new practical driving test (and in some cases also a theory test) within given deadlines.|
|STOCK OPTION PLAN|
|ARTICLE 15 OF THE OECD MODEL|
|Notion of employer|
|Existence of a permanent establishment|