Assigning employees to work in Norway
Foreign companies must consider a large number of issues when assigning employees to work in Norway. Visma is the proffessional partner that assists both foreign employers and expatriates with Norwegian compliance obligations. We also solve legal issues related to Norwegian tax and social security contribution, employment contracts and labour law as well as other relevant areas of commercial law.
Work in Norway - Information for the employer
All employees must be registered in the the NAV State Register of Employers and Employees (Aa-registeret) if the employment lasts for more than seven days with at least four hours of work per week. The registration must be updated upon any changes in the employment, including working hours, title and workplace.
If a Norwegian company or a public body contracts a company resident abroad, this company as well as the foreign company are jointly obliged to file reports regarding the foreign company and the employees contracted to complete the assignment. The foreign company is further obliged to provide information about the employees used during this contract. The reporting is done by submitting form RF-1199 to the tax authorities.
You have to report immediately and no later than 14 days from the commencement of the work. Failure to report by this deadline, may result in a fee.
Every month, the employer is obliged to report the the salary of the period, tax deducted, and social security contribution to the tax authorities. At the end of the year, an annual report must be sent to the tax collector. The employer may, however, apply for an exemption from the reporting requirements and be granted longer reporting intervals.
The annual statement of pay specifies the total salary, including all benefits, paid to the employee during the year, and the tax deducted. The employer is obliged to send a copy of the statement of pay to the employee, in addition to the report submitted to the tax collector. These reports must be submitted by the beginning of January the subsequent year.
Work in Norway - Information for the employee
The employee must obtain a Norwegian ID-number (“personnummer” or “d-nummer”), and a tax deduction card. The tax deduction card must be picked up personally, by the employee, at a specified local tax office.
If an employee is resident in Norway for tax purposes, the person is liable for tax on their global income and capital. Persons not resident in Norway are generally only liable to tax on income from sources in Norway.
The employee will receive the annual pay statement from the employer by January the year after the working year. This statement shows the total salary, including all benefits, that was paid to the employee, in addition to the tax deducted.
The general income tax in Norway is 25 %. If the employee earns more than a certain amount, the person must also pay an additional surtax depending on the income. All members of the national social security system must pay 8,2 % in social security contribution.