Tax in Norway
The lawyers in Visma hold extensive knowledge of Norwegian taxation for both companies and individuals. We regularly assist foreign companies in establishing a business structure in Norway, with the assessment of the tax liability for both the companies and their employees. Furthermore, we assist in the proper filing of tax returns and address the unique complexities that may arise.
Norwegian companies are subject to corporate income tax, employer’s social security contribution and value added tax. Norwegian companies are generally taxed based on their worldwide income.
Companies that are resident abroad are only subject to tax on their economic activities in Norway. All business activities in Norway or managed from Norway are generally subject to Norwegian tax, unless otherwise provided for in an applicable tax treaty. Having an assessment of whether the business activities in Norway will be taxable in Norway, is an important part of the preparatory work prior to setting up the business. To the extent, a foreign company’s business is taxable in Norway, the activities will, normally, be subject to the same tax principles and tax rates as Norwegian companies.
If the company generates income taxable to Norway, the company is obliged to submit an annual tax return. Failure to submit an annual tax return, or a tax return providing complete and correct information, may result in additional tax and compulsory fines.
The employer is obliged to deduct and pay tax in advance from the employee’s salary, based on the information in the employee’ tax card. This is an obligation regardless of where the salary is paid from. As long as the work is performed in Norway, these obligations apply.
Visma also holds considerable knowledge of Norwegian and foreign VAT/ sales tax legislation. Foreign companies in Norway may be obligated to fulfil numerous requirements related to VAT on their activities in Norway. Furthermore, foreign companies doing business in Norway and Norwegian companies doing business abroad both face issues related to customs and VAT on cross boarder activities. Click for more information on VAT in Norway.