Foreign enterprises must consider several issues when assigning employees to work in Norway. Magnus Legal is the professional 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.
When personnel are supplied to work in Norway, the contractor, the subcontractor and the principal are joint and equally responsible for the withholding of taxes and the payment of contributions to the Norwegian National Insurance Scheme.
To become acquainted with the relevant laws and regulations, involves time-consuming investigations. If you get an audit inspection, even the smallest error can lead to penalties or fines. This applies to both your company and your employees.
When you let Magnus Legal take care of the reporting obligations related to Norwegian activity including payroll services, you are guaranteed a correct assessment for the Norwegian Tax Authorities. You will not need to worry about choosing the correct deductions or about any recent changes in legal regulations.
Do your employees need a work permit in Norway or is it possible for a foreigner to sign a contract and start working in Norway without a work permit?
Work permits are linked to residence permits and are dependant on the person’s competence, citizenship and the type and length of work in Norway.
In this blog we have outlined the main rules related to work permits in Norway.
A residence permit for skilled workers is a type of permit that gives access to staying and working in Norway.
Several requirements must be met to qualify for a skilled worker’s permit. The Norwegian Directorate of Immigration will assess the application based on these requirements.
Find our more about the requirements in this blog: Work permits in Norway for skilled workers
When a foreign company has registered a business in Norway, it’s time to report their Norwegian assignment to the tax authorities.
The assignment should be reported electronically through an Altinn-based system called the “Assignment and employee register”. When accessing this system, you fill find two different forms: RF-1199 and RF-1198.
Find out more: RF-1198 and RF-1199 reporting for foreign businesses
Businesses that have employees who perform work in Norway must remember to file an annual wage report.
All employers and others who disburse salaries, pensions, and other remunerations must provide a yearly summary of reported information to each employee or income recipient.
Find out more about the deadline and which information to include: Annual wage report in Norway
To distinguish between hiring-out of labour and a construction and assembly contract is important to prevent unforeseen surprises from the tax office.
In the case of hiring-out of labour, the tax treaties have special provisions allowing the working state to tax the employees’ income from the first working day.
A client that issues a contract can be held responsible for the obligations the contractors down the contract chain have.
The joint and several liability applies to salaries, tax deductions and employers' National Insurance contributions in cases where the contractors breach their obligations.
Find out more: Joint and several liability