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TYPES OF TAX IN NORWAY

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Taxes are an integral part of running your own business. Norwegian law defines tax liability according to the type and scope of business, so you must scrupulously adhere to the deadlines and rates set by the authorities so that your legal and financial situation is clear and defined. Different rules apply to owners of sole proprietorships and companies - this section will help you navigate the tax complexities and smoothly run your business established in Norway.
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TAXATION IN NORWAY

Tax liability is regulated by law. Norwegian taxes depend on the type of business - this applies to both the rates and the deadlines for payment of taxes set by law.
Every entrepreneur in Norway is obliged to pay income tax on the company's profit - 22% and social security contributions - 11.4%. The tax is calculated on the declared amount of profit and must be paid in advance.
[Infographics] [INCOME TAX - ENKELTPERSONFORETAK (one-man company) 15 March 15 May 15 September 15 November [INCOME TAX - AKSJESELSKAP (AS Company) 15 February 15 April]

In addition, tax thresholds have been established that regulate the interest on companies' excess profits - the higher the profit, the higher the amount of tax due.

Companies with employees should also pay the relevant taxes - employment fees, ferienpenger or pension insurance. Employment costs are divided into fixed and variable costs.

Fixed costs are:

  • employment levy (14.1% on gross salary),
  • pension insurance (2% of gross salary),
  • ferienpenger (10.2% on gross salary).
Variable costs are an average of 5% on the employee's gross salary - this type of cost relates to sick pay, accident and health insurance, training and work clothing.

[Infographic] [EMPLOYEE IN THE COMPANY FIXED COSTS 26,3% ↓ employment fee ↓ pension insurance ↓ feriepenger VARIABLE COSTS 5% ↓ sickness benefit ↓ training ↓ work clothing]
VAT in Norway applies to companies with a turnover of more than NOK 50 000 in a consecutive twelve-month period - in which case the entrepreneur is obliged to register for VAT and pay the tax.

VAT in Norway is divided into three rates:

  • standard (25%),
  • reduced (15%),
  • low (12%).
The 25% rate is the standard rate, the reduced rate (15%) applies to food and beverages and the low rate (12%) is charged for passenger transport and culture (television, radio, cinemas).
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TAX ALLOWANCES IN NORWAY

In your annual tax return in Norway, you can make deductions using tax allowances - this reduces the amount of tax payable. Norwegian legislation provides for deductions such as the standard deduction, Pendler status or ordinary settlement.
In order to benefit from Norwegian deductions, you must attach the documents required by the office to your return to confirm the validity of the deductions in question - the type and number of documents depends on the deduction chosen.
One form of tax relief in Norway is the Pendler status granted to foreign employees who regularly commute to their place of permanent residence.

[Infographic] [PENDLER STATUS IS POSSIBLE AFTER FULFILLING CERTAIN CONDITIONS: you must be working or self-employed in Norway visit your family regularly (at least once a year - spouse, children or parents under the age of 21)].

Pendler status in Norway makes it possible to deduct expenses related to food, accommodation and travel to the place of permanent residence.

Expenses that are incurred by a commuter (pendlerutgifter) can be deducted by a person who:
  • does not have independent accommodation in Norway,
  • visits home at least once a year,
  • has accommodation in their home country, or is under 21 years of age and is visiting their parents.

In order to settle as a Pendler, you must present a set of documents:

  • a statement of annual wages and taxes paid in Norway (sammenstiling),
  • årsoppgave (account statement - sent by the bank),
  • certificate of residence in Poland,
  • certificate of registration of residence in Norway,
  • title deed to dwelling in Poland or tenancy agreement,
  • marriage certificate (married persons),
  • birth certificate of children (persons with children),
  • travel documents (tickets, tolls, etc.),
  • tenancy agreement for accommodation in Norway (with specified area),
  • rent receipts,
  • electricity bills.
When a person uses the standard deduction (10% allowance), he/she is not entitled to other deductions.

If a person does not use the standardfradrag he or she can deduct:

  • travel to the place of permanent residence,
  • costs of ferry and barge tickets,
  • accommodation costs,
  • food costs,
  • interest on loans in Poland and Norway.
Standardfradrag, the standard deduction used in the tax return in Norway, is 10% of employment income, but no more than NOK 40 000. Employment income is otherwise defined as gross salary and taxable allowances - benefits in kind, cash bonuses and excess reimbursement of expenses.

[Infgraphics] [WHO CAN USE STANDARDDFRADAG? Persons who do not have pendler status, persons who are resident in Norway for no more than 183 days per year, persons who are resident in Norway for no more than 270 days within two years].

Standardfradrag allows for the deduction of:

  • deductible expenses (minstefradrag),
  • tax-free amount (personfradrag).
Please note that from 2019 the 10% allowance is abolished.
Persons permanently living in Norway who cannot account for other reliefs use the ordinary settlement.

Who can benefit from ordinary settlement in Norway?

  • Persons permanently resident in Norway.
  • Persons who do not have pendler status.
  • Persons who do not benefit from standardfradrag.
[Infographics] [AT ANY SETTLEMENT YOU CAN RESPOND: tax-free amount, contributions to an individual pension fund (IPA), commuting expenses, childcare costs, interest on loans, donations to charitable organisations (maximum NOK 50 000), minstefradag (deductible costs - maximum NOK 104 450)].

In order to settle via ordinary settlement in Norway, a set of documents must be provided:

  • a statement of annual wages and expenses paid (sammenstiling),
  • a pre-settlement statement (Selvangivelse, which is sent by the Norwegian authorities),
  • account statement (sent by the bank),
  • confirmation from school/ kindergarten
  • confirmation from the bank/institution where you have taken out loans,
  • confirmation from an institution where you hold securities, deposit.
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TAXES ON IMPORTS AND EXPORTS

The exchange of goods between Norway and Poland is possible through the European Economic Area - EEA. Goods are assigned certain rates and tariffs or exemptions from these duties. The level of tariffs is determined by Norwegian Customs - http://www.toll.no.

The export of certain goods requires special permits:

[Infographics] [Depending on the type of goods, their export may require the following permits: medicines (www.legemiddelverket.no) arms (www.politi.no) Food / food supplements (www.mattilsynet.no) alcohols seedlings (www.mattilsynet.no)]

Information concerning the goods is contained in the SAD, which must be presented at the Norwegian border. The SAD must be accompanied by an invoice for the purchase of the goods - with VAT or with zero VAT.

If the company invoices the entrepreneur with input VAT, send a confirmation of the export of the goods to the company's address and ask for a correction of the invoice - this will correct the input VAT.
VAT-registered traders do not pay tax at the border - they settle through a tax return.
VAT on imports in Norway is 25% and 15% - electric cars, ships and their parts and electric windmills (energy sources) are not taxed.

Export of goods means the export of goods produced in the country - the sale of goods will be treated as an export once the export outside the European Union has been confirmed at customs.

A company that intends to export goods to Norway should:
  • invoice the recipient with zero VAT,
  • notify the customs office of its intention to export goods outside the EU,
  • notify the Norwegian Customs Service of the importation of the goods.
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INCOME TAX IN NORWAY

The amount of income tax in Norway increases with a company's income - the tax is 22% on the profit made by the company. Norway has established tax thresholds beyond which a company is required to pay a higher percentage of tax.

[Infographics] TAX THRESHOLDS IN NORWAY FOR 2020 I THRESHOLD (+1.9%) 180 800 NOK II THRESHOLD (+4.2%) 254 500 NOK III THRESHOLD (+13.2%) 639 750 NOK IV THRESHOLD (+16.2%) 999 550 NOK]

At the beginning of the accounting year or after the start of operations, the entrepreneur declares the company's profit for the year. On the basis of the declaration submitted, the office calculates advance income tax payments, which must be paid within the prescribed deadlines.

[Infographics] [INCOME TAX - ENKELTPERSONFORETAK (sole proprietorship) 15 March 15 May 15 September 15 November [INCOME TAX - AKSJESELSKAP (AS Company) 15 February 15 April]

The company's profit and business status is reported in Norway in the tax return (Selvangivelse for næringsdrivende), which must be submitted by 31 May of the following tax year.

The authority calculates the amount of tax due and sends information to the entrepreneur stating the amount of surcharge or tax refund - contained in the Skatteoppgjør (by 17 October of the following year).
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TAXES RELATED TO THE EMPLOYMENT OF EMPLOYEES

Employing employees in a company in Norway generates additional costs - fixed and variable. Fixed costs are incurred on a regular basis. Variable costs relate to sickness benefits or the training necessary to perform a specific job.

[Infographic] [EMPLOYEE IN THE COMPANY FIXED COSTS 26,3% ↓ employment fee ↓ pension insurance ↓ feriepenger VARIABLE COSTS 5% ↓ sickness benefit ↓ training ↓ work clothing]

Employment tax - deadlines:

  • MARCH 15 (for January, February),
  • 15 MAY (for March, April),
  • 15 JULY (for May, June),
  • 15 SEPTEMBER (for July, August),
  • 15 NOVEMBER (for September, October),
  • 15 JANUARY (for November, December).
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VAT REGISTRATION

Registration for VAT in Norway is an obligation for any business whose turnover has exceeded NOK 50 000 in consecutive twelve months. Companies that are not established in Norway may be registered by an appointed representative who lives or operates in Norway.
Registration in the VAT register entails an obligation to keep accounts in accordance with Norwegian regulations (Accounting Act of 19 November 2004 No. 73, the VAT Act).

The company should charge and pay fees on sales of goods and services.

Foreign companies may deduct input VAT through customs and when purchasing goods for use in the business. At the same time, they are required to prepare sales statements (omsetningsoppgaver) and pay the VAT due in Norway on a regular basis.

In order to register a company in the VAT taxpayer register (Merverdiavgiftsregisteret), a form must be completed and sent electronically, available on Altinn.no. A paper version - form BR-1080 - can be submitted directly to your local tax office (skattekontoret) or Enhetsregisteret.
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VAT IN NORWAY

Tax liability under current legislation applies to companies and individuals conducting their own business in Norway. Subsidiaries of foreign companies that are registered outside the country but operate in Norway also have to comply with Norwegian tax law.
VAT applies to all companies with a turnover of more than NOK 50 000 in a consecutive twelve-month period (sales of goods and services at any stage of sale - tax is charged on the selling price and when importing - tax is charged on the statistical value of the goods in question).

VAT in Norway is divided into three rates:

  • basic (25%),
  • reduced (15%),
  • low (12%).
The standard rate is 25%, the reduced rate (15%) applies to food and beverages, and the low rate (12%) is charged for passenger transport and culture (television, radio, cinemas).

VAT in Norway is settled on the basis of a VAT return, which takes into account all costs and revenues of the business. The document must be submitted via Altinn.no within the prescribed deadlines.

[Infographics] [VAT DECLARATION The VAT return must be submitted bimonthly - electronically via Altinn.no - by the set deadlines: 10 April (for January, February), 10 June (for March, April), 31 August (for May, June), 10 October (for July, August) 10 December (for September, October), 10 February (for November, December)].

A VAT-paying company should include the abbreviation MVA on its invoices, which indicates that the appropriate VAT rate is added to each good/service.

The VAT report must include:

  • account statements for a given period of time (kontoutskrifter),
  • invoices issued by the company (revenue invoices),
  • costs incurred during the period (invoices and receipts),
  • other documents (vehicle card or premises rental agreement).
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MVA DECLARATION

VAT - Value Added Tax - is Merverdiavgift (MVA), and is settled on the basis of a tax return that Norwegian entrepreneurs must submit within the prescribed deadlines. In the tax return, the company should show all costs and revenues.

Deadlines for filing vat returns in Norway:

  • 10 April (for January, February),
  • 10 June (for March, April),
  • 31 August (for May, June),
  • 10 October (for July, August),
  • 10 December (for September, October),
  • 10 February (for November, December).
The VAT report must include:
  • account statements for a given period of time (kontoutskrifter),
  • invoices issued by the company (revenue invoices),
  • costs incurred during the period (invoices and receipts),
  • other documents (vehicle card or premises rental agreement).
Since January 2017, there have been changes to the rules for submitting VAT returns.
VAT payers settle import duties through the declaration (shipping documents and customs duties remain unchanged). VAT is not paid at the border, so there is no possibility to deduct it in the tax return - the value of the goods must be shown in the import column for statistical purposes (it does not affect the settlement with the authorities).
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FAQ

I VAT IN NORWAY

What does MVA stand for?
MVA is the abbreviation for Mervediavgift, or tax on goods and services, so called VAT in Poland. Colloquially it is often referred to as 'moms'. This abbreviation and the seller's organisational number on the invoice allows the buyer to deduct the VAT charged.
Do all Norwegian businesses have to pay VAT?
Certain industries in Norway are exempt from paying VAT (MVA). Businesses such as banking or insurance companies do not have to pay the tax.
Does an AS company have to pay MVA, every two months?
If an AS company does not have a turnover of NOK 1 million, it may pay the MVA once a year.
What is the VAT rate in Norway?
Mostly 25%, there is a different rate for food and drink (15%) and for cinema tickets, passenger transport, etc. (12%). (12%).
Who must pay VAT?
VAT must be paid by any business with an annual turnover of more than NOK 50 000.
Does everyone have to register their business as a VAT payer?
Only entrepreneurs whose annual income will exceed the threshold of NOK 50 000.
What are the applicable VAT rates in Norway?
From 1 January 2005:
• 25% on goods and services,
• 15% on food and beverages,
• 12% on cinema tickets, passenger transport, etc.
What VAT is charged on imports?
When we import any goods, the tax due is calculated on the amount of duty.
What are the VAT payment deadlines?
VAT deadline by for the period
1 deadline 10 April January, February
2nd deadline 10 June March, April
3rd deadline 31 August (extended due to the holiday period) May, June
4th deadline 10 October July, August
5th deadline 10 December September, October
6th deadline 10 February November, December
Can VAT be settled once a year?
Yes, but only for companies with no income higher than NOK 1 million per year. In order to do so, the appropriate application must be submitted by 1 February.
How often do I have to account for VAT?
Companies with a large turnover must submit a VAT return every two months, on the basis of which settlement is made. Companies with an annual turnover of less than one million kroner may, upon application, submit a VAT return once a year per year.
What is the function of a resident?
A resident is an individual who has a permanent personal number or a Norwegian company. He or she becomes a VAT representative and is responsible for calculating and paying tax on behalf of a Polish entrepreneur cooperating with a Norwegian company.
How do I recover VAT in Norway for goods paid for and imported from Poland?
In order to reclaim the tax you have paid, you should contact the seller who issues an invoice that does not include Polish VAT and send him documents confirming that the goods were imported to Norway. After the correction, the seller should return the value of the VAT to the purchaser. At the same time, the buyer must pay the MVA, i.e. the Norwegian value added tax, on entry to Norway. When preparing the VAT return in Norway, the amount of tax paid at the border should be included, which will reduce the amount of tax due to be paid.
Can I claim back VAT on goods purchased before I registered my company for VAT?
Yes, but you must inform the office that you wish to reclaim VAT from the period before you registered your business as an MVA and you should do so as soon as possible after you have registered your business on the VAT register (MVA).
How do I reclaim VAT for materials purchased before the company was registered for VAT?
Once the business has made such a request to the office, a form will be sent to the business which will need to indicate the expenses incurred at the time. Attached invoices and receipts will be proof of the expenses incurred. Once the documents have been completed and the receipts prepared, an additional VAT return must be sent to the office for the period before the company was registered for VAT.
What should I do if I am charged too much VAT?
In the event that the office questions our accounts, it is necessary to re-check the completed tax returns and, once they have been audited, submit a letter of appeal against the office's decision.
How do I submit my VAT return online?
When you log on to altinn.no, you will find the form RF-0002, select hovedoppgave, and choose the period to which the return relates. Enter the revenue without VAT (it will be automatically calculated) and enter the total VAT paid for goods and services at the appropriate rate (10%, 15% or 25%) in the costs. Once you have completed these details, the programme will calculate the amount of tax to be paid in the field avgift a betale or to be refunded in the field til gode.
I would like to purchase goods without VAT in the European Union. Do I need a European VAT number and can I get one in Norway?
Norway is not a member of the EU, so you cannot apply for a European VAT number. If you want to avoid paying European VAT on goods purchased in the EU, you must declare your intention to export the goods for VAT recovery. You will then only pay VAT on entry to Norway
I am a teacher and my income exceeds NOK 50 000. I also provide tutoring. Can I be exempt from paying VAT?
Yes, teachers have a VAT exemption and do not have to pay tax even if their annual turnover exceeds NOK 50 000. However, teachers cannot deduct dues from their business expenses.

II TAXES IN NORWAY

How is output tax calculated?
The output tax is a value-added tax. It is calculated on the value of services and products sold and must be paid to the tax office.
What is input tax?
It is a value added tax added to the value of a taxable product or service. If the purchaser is a VAT payer, the amount of tax can be deducted in the tax return.
Which services are not subject to tax in Norway?
In Norway, health, financial, insurance and cultural services (a ticket to the cinema or theatre) are not subject to tax.
Who must have a tax identification number?
You must have this number (Organisasjonsnummer) if you are an entrepreneur doing business in Norway and also if you employ people working in Norway.
What is a tax identification number useful for?
You will need your tax identification number to identify yourself as a corporate entity, pay tax withholdings, insurance premiums and VAT. It is also necessary when dealing with banks and financial institutions.
How do I obtain a tax identification number?
To obtain such a number, you must register your business with the Enhetsregisteret.
What is a likningsverdi?
Likningsverdi is another word for tax value, which is calculated on the basis of the Skatteetaten publication.
What has the 2013 agreement between Poland and Norway on double taxation changed?
The agreement is intended to help avoid double taxation and prevent tax evasion with regard to income taxes.
What is the difference between a Pole with 'limited tax liability' and a 'tax resident'?
The first term is limited to the sum of individual stays in Norway. If they do not exceed 183 days in 12 months or 270 days in 36 months, only income earned from a Norwegian employer for work in Norway is taxable. If the length of stay in Norway is more than 183 days in 12 months or for more than 270 days in 36 months, the person is tax resident. This means that, according to Norwegian tax regulations, you have to pay tax in Norway on all your assets and income.
Is it possible to become a 'tax resident' more quickly?
According to the new ratified agreement, you can. You must then demonstrate that Norway is your 'centre of life and business'. - A bank account, a company or a flat in Norway is sufficient for this.
What is a TAX FREE shop?
These are shops where we can claim back tax on purchases made in Poland.
How can tax be recovered from TAX FREE shops?
The first condition is that the goods exported from Norway are intact. It is therefore not possible to claim a refund for services used during your stay in Norway, e.g. eating out in a restaurant, visiting a hairdresser, etc. Another condition is the minimum purchase amount, which is NOK 315 for ordinary goods and NOK 290 for groceries. This applies to products purchased from one retailer on a particular day. Everyone can apply for a tax refund, except those residing in Denmark, Finland and Sweden.
Where can I get a refund for my TAX FREE shopping?
You can get a refund at one of the Cash Refund Counter points located at border crossings, airports, ferries, etc. You will need to bring with you: the goods you have purchased, your passport/ID and your Global Refund cheque.
Does everyone who lives and works in Norway have to declare?
Yes, everyone is required to submit a tax return.
What happens if I do not submit a tax return?
In this situation, the tax authorities have the right to calculate the tax according to their own documentation. This is often higher than the minimum necessary.
What can you deduct in your tax return?
There are many things that can be deducted: tolls, airline tickets, the cost of renting a flat, kindergarten costs and many more.
Is it possible to extend the deadline for filing my tax return?
Yes, with prior written application in Norwegian to the office.
Is the turnover on which the tax is calculated to be calculated gross or net?
Turnover should always be calculated gross.
How do I underpay tax?
After completing the tax return, the taxpayer will receive a special account number to which he/she can make the payment.
Can I apply for a tax reduction if I have a mortgage?
Yes, you can apply for a new tax card via MinSide or in person at the tax office. You will then need to pre-calculate the amount of interest you will pay in the coming year, after which you place this amount on your tax card.

III INVOICES IN NORWAY

What information must appear on the VAT invoice?
The most important is the company's organisational number and the abbreviation MVA, as without these details the buyer will not be able to deduct VAT. In addition:
• the invoice number at the top of the document,
• date of issue of the invoice,
• date of payment of the invoice,
• seller's data,
• buyer's details,
• bank account number,
• description of the service or goods,
• amount to be paid.
What can be done in the event of an incorrect invoice?
You should issue a correcting note, the so-called kreditnota.
What is a zero invoice?
It is an invoice without VAT. It is a good idea to get one when importing goods to Norway, as it means that you do not have to pay VAT on the imported products.
Are VAT invoices important for a business?
Yes, because the Norwegian tax authorities use them as a basis for assessing the health and integrity of your business.
What do I need to be able to issue invoices?
To be able to issue an invoice in Norway, you will need an Organisasjonsnummer, which is the registration number where you can find the company at Brønnøysundregistret - without these formalities you cannot issue an invoice.
When can I start issuing invoices?
Invoices can be issued as soon as you receive confirmation of registration from the authority, as this document contains the company's Norwegian organisation number, which must appear on every invoice issued. Another prerequisite is that you have a company account with a bank.
How are invoices for materials purchased for the company booked?
Operations carried out through the company account are recorded automatically in the accounting programme. Therefore, it is safer to make payments from a company account rather than from a private account, especially as the tax authorities pay special attention to expenses incurred from a company account during audits.
How should interest income accrued by the bank on funds held in a company account be booked?
Interest on funds in a company account is usually charged by the bank on the last day of the year, and is booked on the credit side of account no. 8040.
Can a telephone invoice be included in company costs?
Yes, but only for a phone with a company subscription.
Can I issue invoices with a work permit?
No, in order to issue invoices you must have a registered business.
Can I issue invoices while on parental leave (fedrekvote)?
You cannot issue invoices during fedrekvote.
Does the abbreviation MVA have to be on every invoice?
Yes, without the abbreviation the purchaser will not be able to deduct the purchase for input VAT.
Can having multiple invoices for the same subcontractor pose a problem for the company?
Yes, the authorities may take a closer look if they suspect that this is a way of circumventing the rules.

IV TAXES FOR ENTREPRENEURS

What is a Norwegian organisation number used for?
A Norwegian organisation number is the equivalent of the Polish NIP, which is given to new companies and individuals. The number is needed to deal with many matters that have to do with public administration, such as paying tax or social security contributions.
How long is a translation of documents made by a sworn translator valid?
A sworn translation into a foreign language is valid for two months.
Do entrepreneurs in Norway have to submit a tax return?
Yes, it is the responsibility of everyone who starts a business in Norway to submit a tax return and send it to the tax office. The expected amount of income for the entire financial year must be entered on the return.
What taxes do entrepreneurs have to pay in Norway?
Entrepreneurs must pay income tax of 23% on the company's profit, social security contribution of 11.4% on the company's profit and VAT (MVA) if the company is registered for VAT. If an entrepreneur has employees, he or she must additionally pay employee employment tax, which is 14.1% on the employee's gross salary.
I have a sole trader business. Can I benefit from the deduction of the tax-free amount?
The tax-free amount applies to sole proprietorships, but not to companies and other forms of business where the entity is a legal person.
Do I have to pay any fees to set up the company?
No, setting up a sole proprietorship is completely free of charge.
How much is the income tax?
22% on the income of the company.
How does the office calculate the tax and advance payments for it?
After opening a business, the entrepreneur declares how much he will earn in the current financial year. The office calculates 33.4% tax on this amount (22% income tax and 11.4% tax - the equivalent of the Polish Social Insurance Institution). This amount is divided throughout the year into four instalments, which the entrepreneur pays to the office in the form of advance payments. The tax return submitted at the end of the financial year allows the calculation of whether the turnover was higher and a tax surcharge will have to be paid, or lower and the entrepreneur will be refunded the excess.
Is the tax rate the same for all companies?
The tax rate differs for sole proprietorships and companies with employees. The latter incur an additional employment tax of 14.1%.
What amounts must be paid when employing an employee?
When employing an employee in a Norwegian company, there are fixed and variable costs to be paid. The former include:
• arbeidsgiveravgift, i.e. the equivalent of the Polish Social Security of 14.1% (it may be slightly lower due to the geographical zone of the country),
• feriepenger or min. 10.2% of the employee's salary set aside for a "holiday reserve",
• OTP i.e. compulsory pension insurance of 2% on the employee's gross salary.

Fixed costs in total amount to 26.3% of gross salary.
Variable costs are:
• NNW of NOK 2 000 to 10 000 per year,
• costs related to occupational health and safety (HMS),
• other training,
• sikepenger or sick pay,
• bookkeeping costs,
• other additional and unplanned expenses (e.g. special clothing for the employee, equipment such as a computer or telephone required for work).

Together with variable costs, the cost of employing an employee is approximately 31% of the employee's gross salary of the additional costs incurred by the employer.
Is it necessary to have an accounting programme to run a business?
No, but it will make your work much easier.
What is the tax payment system in Norway?
An entrepreneur in Norway is required to declare the expected amount of profit each financial year. From this amount, the office calculates tax of 33.4%, i.e. income tax of 22% and Norwegian Social Insurance of 11.4%. The resulting amount is divided by the office into four equal instalments, which the entrepreneur must pay to the office on a specified date in the form of advance payments.
By when must advance tax payments be made during the financial year?
The first instalment is payable by 15 March and the subsequent instalments by 15 May, 15 September and 15 November.
What is needed so that petrol for a private car can be paid from a company account?
You will need a Kjørebok, or 'driving book', which must be kept for the purpose of being able to make payments from the company account for petrol for a car that is not registered with the company. The maximum amount per year is 6 000 km at NOK 4.10 per kilometre.
What are the options when a customer is late with a payment?
Firstly, you can send a purring, i.e. a reminder, if payment has not been made within two weeks of the invoice being issued. Up to NOK 65 can then be added as a penalty fee - the deadline for repayment is 14 days. Inkassovarsel then works on the same principle. The final step is to use the services of a debt collection company, which will add its fee and percentage.
What happens if the entrepreneur does not file a tax return?
Skatteetaten will calculate the tax due itself, but this may be to the entrepreneur's disadvantage.
By when must the tax return be submitted?
You must submit your tax return by 31 May. Your return must include your income and indicate the amount of tax payable.
I have an underpayment of tax. What now?
In the annual tax return that you have received from the office, there is information about the amount of the tax surcharge and the deadline for payment. The downside of this situation is that the office will add interest to the underpayment.
I did not pay advance tax payments for a whole year. What now?
If an entrepreneur has not paid advance payments for the whole year, he or she can transfer the funds in late April/early May, at the time when the Tax Office sends the tax return for the previous year. At the bottom of the return received, there is an account number and KID. These details are used to transfer a specific amount for advance payments. The entrepreneur determines the amount himself.
How is VAT settled in Norway?
In Norway, VAT is settled in the form of tax returns, which entrepreneurs usually have to submit every two months (the exact list of deadlines is published by the Tax Office).
Can tax returns be submitted electronically?
Yes, declarations can be submitted via the web portal altinn.no.
Is it necessary to pay tax on all gross receipts of a sole proprietorship?
Due to the costs of doing business, the total revenue is not as important as the total profits of the company. It is on the basis of this that the authority calculates income tax. Minstefradrag is a tax-free amount that only employees are entitled to.
What does MVA stand for?
MVA is otherwise equivalent to Polish VAT, which in Norway is 25%.
Do all Norwegian businesses have to pay VAT?
Certain industries in Norway are exempt from paying VAT (MVA). Businesses such as banking or insurance companies do not have to pay tax.
If you have a company in Poland, can you recover VAT for goods purchased in Norway?
Yes, if you are not a Norwegian business and are not registered in Norway. The deadline for submission is 30 June and must be submitted in Norwegian, English, Swedish or Danish. In addition, the lowest amount of VAT to be reimbursed that entitles you to make a claim is NOK 2 000 and that applies to a whole calendar year is NOK 200. The application must be accompanied by invoices and a certificate from the tax office that you are a VAT payer.
Does a Polish company have to report the signing of an assignment contract in Norway?
If the remuneration for the contract is less than NOK 10 000, there is no need to report the assignment anywhere. If the turnover of a Polish company exceeds the threshold of NOK 50 000 within 12 months, the company should either establish a branch in Norway or set up a Norwegian company. At the same time, it is the principal's responsibility to inform the authorities about the contractor and employees. The contractor, on the other hand, should report its employees to the tax office using form RF-1199 within 14 days of the start of the work.
How do I complete form RF-1030 Selvangivelse for naerinsdrivende when submitting the annual tax return for a sole trader?
This form relates to company income. If you are running a sole trader company, you can document your income by selecting RF-1175 Naeringsoppgave 1 and completing the sections on income and individual expenses.
How do I check whether a company is liable for Norwegian VAT?
Go to https://www.brreg.no/ and enter the company name in the field Finn foretak/en het. If the field saerlige opplysninger shows the status merverdiavgiftsregistere, the company is a VAT payer.
How long does it take to register a company in the Norwegian VAT register?
Approximately one month.
Above what amount must a company be registered for VAT?
Above an amount of 50 000 kroner, if this has been reached within 12 months of starting the business.
What does the merverdiavgiftsregistere status next to the company name mean?
It means that the company is registered for VAT.
How do I register a company for VAT?
You must fill in form DEL 2 - Tillegg for Merverdiavgiftsregisteret and send it to the office together with the invoices issued to date (it is advisable that the total amount of invoices does not exceed NOK 50 000).
Is it possible to write back electronically to a letter received in connection with the registration of a sole proprietorship as a VAT payer?
Yes, it is possible to do so via altinn.no if all conditions are met.
What if the entrepreneur exceeds NOK 50 000 of annual turnover without being registered for VAT?
In this situation, there are two options: if the invoice exceeds NOK 50 000 with an MVA rate of 0 per cent, or already with 25 per cent. If the office orders you to invoice already with VAT, you run the risk of having to correct a zero invoice and recover the missing amount from the customer. It is therefore better to invoice immediately with an MVA of 25%, even though the company is not yet listed in the register.
If I run a company in Norway and pay tax here, can I count on medical assistance in other EU countries?
Medical assistance is available in all EU countries, the EEA and Switzerland. You must bring proof of your entitlement to this care. This can be the European Health Insurance Card (europeisk helsetrygdkort in Poland known as EKUZ), form E-106 or E-109.
I will soon be closing my business and would like to settle my annual tax. Can I do this now, before the end of the accounting period?
Unfortunately, no. The annual tax return must be done after you have obtained Selvangivelse, which you do not receive until after the New Year.
I run a sole trader company. Do I use the same form for tax as when ordering skattekort for private individuals?
Yes, you will need the same document, but completed slightly differently. You can arrange this by telephone, in person at Skatteetaten or by post.

V TAX RELIEF

What is a Standardfradrag?
Standardfradrag is a 10% allowance that can be used when filing your tax return. It cannot amount to more than NOK 40 000.
Please note that from 2019 the 10% allowance is abolished.
Who is entitled to Standardfradrag?
Standardfradrag is available to persons who have worked in Norway for no more than two years. This includes persons who do not qualify for pendler status. The length of residence in Norway can be proven, for example, by a registration certificate.
Please note that from 2019 the 10% allowance is abolished.
What is pendler status?
It is a status to which two groups are entitled: persons who regularly visit their spouse and children in Poland and unmarried persons who regularly visit their family.
Who is entitled to pendler status?
First of all, you must have a permanent address of residence in Poland, and your rented accommodation in Norway must not exceed 30 square metres per person. You must be able to prove visits to your family, e.g. by holding airline tickets.
What can I deduct in my tax return with pendler status?
The cost of rent for rented accommodation in Norway, the cost of travel to Poland, toll gate fees, and electricity bills for rented accommodation. You will need copies of receipts for travel to your home country, paid rent or electricity charges to prove these expenses.
How do people who do not qualify for either pendler or Standardfradrag status settle their accounts?
For these people there is an ordinary settlement.
What can I deduct with the normal settlement?
Among other things, you can deduct the costs of childcare, kindergarten, day care, commuting expenses or interest on loans.
What is the second tax class?
To belong to the second tax class, you must be a single parent or your spouse must not exceed an income of NOK 39 012 throughout the year. As of 2018, the second tax class is abolished.
Can I apply for a second tax class with pendler status?
Yes, you can apply for a second tax class regardless of your status. All you need to do is meet the required conditions. As of 2018, the second tax class is abolished.
What documents do I need to have in order to settle as a pendler?
You will need a set of documents to complete your tax return:
• Selvangivelse document, i.e. a pre-settled return that you receive from the Norwegian Tax Administration,
• Sammenstiling, i.e. a statement of your annual wages and taxes paid, which you receive by post in January or February from your employers or from the relevant office if you have received sickness or unemployment benefit,
• årsoppgave - information sent to you from your bank or in electronic form about your account balance,
• marriage certificate, if you are married,
• birth certificates of children, if you have them,
• certificate of co-registration with your family,
• certificate of permanent residence in Norway,
• property deed or tenancy agreement for premises in Poland,
• proof of travel to your home country (ferry or plane tickets),
• tenancy agreement for accommodation in Norway with information about the size of the rented accommodation,
• confirmation of payment of rent,
• confirmation of payment of electricity.
What documents do I need to have in order to be able to account for the 10% allowance?
• Selvangivelse document, which is a pre-settlement statement that you receive from the Norwegian Tax Authority.
• Sammenstiling, which is a statement of annual wages and taxes paid, which you will receive by post in January or February from your employer, or from the relevant office if you have received sickness or unemployment benefit.
• Information sent from your bank or in electronic form about your account balance - årsoppgave.
What documents do I need to have in order to submit an ordinary tax return?
• Selvangivelse, which is the pre-settlement statement you receive from the Norwegian Tax Administration.
• Sammenstiling, which is a statement of annual wages and taxes paid, which arrives by post in January or February from your employer, or from the relevant office if you have received sickness or unemployment benefit.
• Information sent from your bank or in electronic form about your account balance.
• Confirmation from the kindergarten or school and SFO.
• Confirmation from the institution where you have loans.
• Confirmation from an institution where one has a deposit or securities.

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