TAXES IN NORWAY
An annual tax return should be filed by anyone working or operating in Norway.
The ordinary tax return is designed for persons who are permanently resident in Norway and are not entitled to other allowances.
The usual settlement allows for the deduction of childcare costs, kindergarten/day-care centre/school costs and interest on loans.
In order to be able to deduct school or kindergarten costs, you will need to provide Årsoppgave (confirmation of payments made for the accounting year).
In order to deduct interest on a loan taken out in Poland from your tax base, you will need to obtain a certificate of interest paid in a given tax year – the document should be translated into English or Norwegian.
If you have a mortgage, you can apply for a new tax card, on which you will pre-register the amount of interest you have paid on your mortgage for the coming year.
With an ordinary tax return, commuting to work can be deducted if the own contribution is covered (the amount is variable) and the commuting is by own car more than 2.5 km one way.
MinID codes are required to log in to altinn.no through which the annual tax return is submitted.
Minstefradrag is a tax-free amount automatically deducted in the annual return. The tax-free amount only applies to employees who have income from an employment relationship, pension or social benefits. Minstefradrag is based on the length of time you have worked in Norway and the amount of income you have earned.
The identification number is issued by Brønnøysundregistrene in the process of registering a business. The entrepreneur should register the business with the Register of Business Entities (Enhetsregisteret) by completing form BR-1010 (Samordnet regsitermelding) and sending it to Brønnøysundregistrene.
Income tax is calculated on the basis of the company’s profits, not its income.
Norway is not a member of the European Union, so it is not possible to obtain a European VAT number. In order to receive a VAT refund for purchased goods, the goods must be declared at the border.
Cosmetic treatments in Norway are subject to a 25% VAT rate – this includes pedikyr / manikyr, behandling av håravfall med laserapparat, legging av kunstige negler. Massages treated as therapeutic massages are exempt from tax – klassisk massasje, rygg og nekke massasje, fot og legemassasje, klasisk vaelvere.
This amount of tax is collected if the employee has not provided the employer with a tax card. The type of tax card depends on a number of factors; foreign employees are most often issued with card number 7100. Once the tax card has been provided to the employer, the authority should stop withholding tax at the increased rate and refund the amount of tax collected plus interest.
Documents required by Norwegian authorities should be translated into English or Norwegian by a sworn translator. The validity of the translation is two months.
COMPANY IN NORWAY
If you meet certain conditions, it is possible to receive funding for your company in Norway.
For information about funding for companies: https://pol-nor.com/dofinansowanie-dla-firm-w-norwegii.
Business in Norway cannot be suspended, the owner can only close the business.
The fixed costs that the entrepreneur incurs are a minimum of 33.4% of the company’s profit – 22% income tax and 11.4% social security contributions. Companies with a turnover of more than NOK 50 000 in consecutive 12 months should be entered in the VAT register and pay the tax due.
Accounting for a one-person company can be done independently – there is no obligation to use an accountant
The numbering of invoices is continuous, which means that you have to number them in order regardless of the accounting year. The numbers given to the company’s clients remain the same. nor accounting programmes.
Entry in the VAT register is free of charge and can be done before the NOK 50,000 limit is exceeded, but certain conditions must be met: exceed the NOK 50 000 limit within three weeks of registering the business or make purchases of more than NOK 250 000.
If the owner of an Enkeltpersonforetak is on 100% sick leave, it is not possible to issue an invoice – the company cannot have any income during the period of sick leave. If the entrepreneur is on 50% exemption, the income can only come from work that is not covered by the exemption you have, such as office work.
The amount of the benefit depends on the previous year’s income. If the owner has additional insurance from NAV, the office calculates the contribution based on income from three full accounting years or documented income up to a given point in time (for companies operating for less than three years).
A spouse can assist in the running of the business if there is no property separation between the spouses. In such a situation, the income of the business can be divided between the spouses in the tax return, and when the business owner has a 100% exemption, his/her spouse can take over his/her duties.
To register an AS company, you need to prepare the required documents – signed incorporation documents (Stiftelsesdokument, Styreprotokoll, Åpningsbalanse, Vedtekter), an application for company registration (Del 1 Hovedblankett) and confirmation of payment of share capital.
Establishing a Norwegian AS company requires an equity contribution of at least NOK 30 000 – the amount of share capital can be used to finance the costs of opening and operating the business. The company is only liable for any liabilities up to the amount of share capital.
Any expense incurred in connection with the company’s operations is included in the company’s costs.
A telephone invoice issued to the company can be included in company costs. The amount of deductions is regulated by law.
Commuting in a car that is not owned by the company or the owner can be included in costs if you keep a kjørebok vehicle book.
The fee for issuing the marsla and interest for late payment can be deducted – the net amount should be taken from the source invoice.
Only the interest on the loan and the depreciation of the vehicle can be included in costs.
Lease instalments can be included in company costs.
Goods purchased for business purposes can be treated as business costs, provided that the applicable customs procedures are met.
A gift to an employee can be deducted as a business expense if the value of the gift does NOT exceed NOK 2,000, in which case the amount above the NOK 2,000 limit constitutes income to the employee and should be taxed.
The difference is in the purchase document – when buying a car from a private individual, the purchase document is the purchase contract, when buying a vehicle from a company, the purchase document is the invoice.
In the kjørebok, the date and purpose of the trip, the route taken and the number of kilometres driven must be entered.
The company driving Kjørebok can deduct parking fees, tolls, etc.
The car can be included in fixed assets.
The VAT included in the invoice should be booked once in the month of purchase.
If VAT is included on an invoice issued by a Polish company, you can provide confirmation of the export of goods abroad and request a correction of the invoice. However, VAT paid at the Norwegian border is deducted in the tax return.
In such a situation, the entrepreneur may wait for payment, credit the invoice or demand payment through the official channels.
How do I send a contractor a purring and charge a penalty for late payment?
After two weeks from the due date of the invoice, the company can send a reminder with the amount of the arrears and the due date – the customer should pay the amount due within 14 days and the maximum penalty that can be charged is NOK 210. If the customer does not respond to the reminders, the trader may send an inkassovarsel, which is a final demand for payment that precedes referral to court or a debt collection company.
Companies in Norway are obliged to keep records of all their assets.
An employee who uses their own tools at work should receive a wage supplement (verktøygodtgjørelse) for this.
The owner of a company that employs or subcontracts employees and the dagligleder, who is responsible for the safety of subordinate employees, are obliged to receive health and safety training (HMS). The employee should receive job training and any health and safety training provided by the company’s health and safety representative.
The obligation to appoint a health and safety representative applies to companies with more than 10 employees – the employer is obliged to provide such a person with training on health and safety and labour inspection regulations.
Act relating to health and safety regulations: https://lovdata.no/dokument/NL/lov/2005-06-17-62/KAPITTEL_6#KAPITTEL_6.
Norwegian regulations do not regulate the content of an employee’s file.
Is the cost of periodic examinations of employees borne by the employer?
The employer may or may not bear the cost of employee examinations.
Innskuddpensjon is an additional agreement with the employer regarding pension contributions, whereby a 'fond’ is deducted from the employee’s salary.
You must inform Brønnøysundregistrene and your banks, insurer and contractors immediately of any changes related to your business. To inform the authority of a change of business address, it is necessary to fill in the form available at: www.brreg.no and send a hard copy to the authority.
Norwegian law does not explicitly regulate the terms and conditions of employment for persons with disabilities, but NAV can provide information on programmes for persons with disabilities and the types of subsidies available in your region.
More information about recruitment agencies in Norway:
Job sites: https://pol-nor.com/ogloszenia, www.finn.no.
People with disabilities can, like people without disabilities, search for jobs on Internet portals, with the help of employment agencies or directly with employers. They can also make use of the programmes offered by the NAV to help people with disabilities find work.
Minimum rates in the construction industry in 2020:
– skilled worker: NOK 209.70,
– unskilled worker without experience in the profession: NOK 188.40,
– unskilled worker with at least one year of experience in the profession: NOK 196.50,
– employee under 18 years of age: NOK 126.50.
Minimum rates in cleaning services in 2020:
– employee over 18 years of age: NOK 187.66,
– employee under 18 years of age: NOK 139.62,
– hourly allowance for night work: NOK 26.
Minimum rates in agriculture and horticulture in 2020 – permanent employees:
– skilled worker: NOK 150.30,
– unskilled worker without professional experience: NOK 143.05,
– employee under 18 years of age: NOK 112.65.
Minimum rates in agriculture and horticulture in 2020 – temporary workers:
– employee under 18 years of age: NOK 103.15,
– employee employed for up to 12 weeks: NOK 123.15,
– employee employed for 12-24 weeks: NOK 128.65.
Notice of termination must be reasonably justified and in writing. The notice of termination should contain information relating to the employee’s right to negotiate (an employee who does not accept the reasons for dismissal may inform the employer in writing within two weeks and enter into further negotiations), the right to continue working under different terms and conditions, the right to sue, etc. The employer cannot dismiss an employee without compelling business reasons.
The employment contract should contain information related to the termination rules. If the document does not contain such regulations, the employee is subject to a notice period of one month or two months (if the employee has been employed by the company for at least five years). The notice period for a probationary contract is 14 calendar days.
As a general rule, the notice period depends on age and length of service:
– employee employed less than 5 years = 1 month,
– employee employed for 5-9 years = 2 months,
– employee with 10 or more years of service under 50 years = 3 months,
– employee with 10 or more years’ service aged 50-54 = 4 months,
– employee with 10 or more years’ service aged 55-59 = 5 months,
– employee with 10 or more years of service aged 60 and over = 6 months.
An employee during sickness or after an accident at work who is partially or totally incapacitated cannot be dismissed for 12 months. Termination is only possible if the employer proves that the reason for the dismissal is not the employee’s incapacity to work.
A dismissed employee can apply for unemployment benefits one week before the first day of dismissal.
In order to reduce an employee’s working hours, the employer should inform the employee in writing two weeks before the planned reduction.
Permittering is the temporary release of an employee from the obligation to work for an employer who is exempt from the obligation to pay wages. An employee who meets certain conditions can claim unemployment benefits for the duration of the permittering.
A person on permittering can be dismissed – he or she is entitled to full pay during the notice period.
Public holidays are regulated by law, church holidays should be regulated by the employment contract or possibly by a collective agreement. For the legally regulated public holidays – 1 and 17 May – the employer pays full wages.
For more information about public holidays in Norway: https://lovdata.no/dokument/NL/lov/1947-04-26-1.
If the employer has agreed in the employment contract to pay for the overtime and night work earned, but evades this obligation, the employee should send a registered letter to the company with the amount of the arrears, a deadline for its payment and information on the consequences of not paying the money. If the employer continues to evade payment, the employee can apply to the arbitration board competent for the municipality where the company is based. Failure to reach an agreement means taking the case to court and the bailiff who will recover the amount due.
Annual leave should not be less than 25 working days (in the case of a full-time contract), but leave issues usually depend on the agreement between the employee and the employer. A person working on an 80% contract is entitled to a minimum of 20 days’ leave.
Fagbrev can be obtained from the Vocational Training Office (Fagopplæringskontoret) in the district (fylkeskommune) responsible for your place of residence.
In order to obtain a fagbrev, you will usually be required to provide a vocational qualification (certificate from a vocational school), a description of your work experience and evidence of your knowledge of the Norwegian language. The required documents must be translated into English or Norwegian.
Transport permits and licences are issued by the Norwegian municipalities.
For more information about transport permits: http://www.regjeringen.no/no/tema/transport-og-kommunikasjon/ytransport/loyver/id444316.
NOKUT (Nasjonalt Organ for Kvalitet i Utdaninngen) is the institution responsible for the verification of foreign education. As a rule, documents submitted may be copies translated into English or Norwegian. The copies should be stamped rett copy – true to the original.
Such cases can be reported to the Norwegian Labour Inspection Authority – www.arbeidstilsynet.no or the Centre for Foreign Workers in Oslo. Abuse against women can be reported at: www.jurk.no.
SOCIAL BENEFITS IN NORWAY
Unemployment benefits can be received by a person who has worked full-time for 8 weeks in the last three months.
NAV cannot grant benefits to a person who does not meet the conditions for benefit, so unemployment benefits must be claimed one week before the first day of full or partial unemployment. If you are registered as a jobseeker, you are entitled to benefits from the moment you register, but you must submit a complete application for benefits within four weeks.
Anyone who has received a salary and meets the conditions for receiving unemployment benefit is entitled to unemployment benefit.
When setting up a business, you can apply for start-up funding. To do so, you will need to submit a business plan and attend relevant courses and training that NAV directs you to. An entrepreneur who is entitled to benefits can receive funding to open a business and, if this fails, can return to receiving benefits.
Those who are entitled to the benefit can apply for payment of the benefit while they are planning and setting up their business.
In Norway, it is not possible to suspend your business – an entrepreneur can only close your business. Owners of Enkeltpersonforetak (sole proprietorships) are not entitled to unemployment benefit.
To lodge an appeal, you must deliver a letter to the NAV office responsible for your place of residence.
A pension is available to employees who are unable to take up gainful employment due to ill health. Persons aged 18-67 whose ability to work is reduced by 50% and who have been insured for three years prior to the accident/sickness are entitled to the benefit. Chronically ill persons can apply for the benefit after 12 months of continuous sick leave. The application for the pension must be submitted to NAV together with the documents required by the office. A medical examination and treatment/rehabilitation are required before submitting the letter.
If the disability pensioner resides permanently in Norway, he/she may be exempted from paying taxes in Poland. In order to do so, you must obtain a Norwegian resident title from the Polish Social Insurance Office.
Maternity allowance can be claimed by women who have worked for at least six months in the last 10 months, their income has reached a level on which pension contributions have been paid, and the amount earned is at least half the base amount set by NAV. The base amount, or grunnbeløp, is the basis for calculating social benefits and changes each year.
You can check the current grunnbeløp at: https://www.nav.no/no/NAV+og+samfunn/Kontakt+NAV/Utbetalinger/Grunnbelopet+and+folketrygden.
You should inform your local NAV office of any changes to your financial and family situation. Changes of this kind may affect the amount of benefits awarded by NAV.
Information about marriage or the birth of a child should be given to the office by one of the parents. A woman who has a residence permit for the birth of a child is entitled to a one-time supplement and child benefit.
The mother of the child should apply for the allowance at NAV.
The child should be registered with the parent – the allowance will be granted at the time of registration.
The benefit is granted upon the children’s arrival in Norway, however, it is possible to apply for compensation of the benefit for the period when they were still staying in Poland.
Child benefit is not taxable.
The bailiff manages the debt repayment procedure taking into account the debtor’s living and living expenses, so the allowance should not be withheld for outstanding debts. The benefit may be withheld if the entitlement to the benefit has been lost or the required formalities have not been fulfilled.
PENSION IN NORWAY
You can apply for early retirement in Norway from the age of 62. In your application, you should state what part of the benefit you wish to receive. It is worth remembering that early retirement is a condition for reducing the amount of benefit in later years, especially if the pensioner decides to take the full amount of the benefit.
You are entitled to receive the minimum pension if you have worked in Norway for at least three years and have been a member of the Norwegian Social Insurance Scheme during this time.
You can calculate your accrued benefit using the calculator on the NAV website.
A minimum pension is awarded after you have worked for a minimum of three years. If you have worked in Norway for the required period, seasonal work is also counted.
Recipients of a Norwegian pension can work regardless of the amount of salary they receive.
If you meet the criteria, you may apply for an allowance for years of service in Norway. To do this, you need to submit application RP1e and form e207pl to a branch of the Social Insurance Office. The forms state the period of employment abroad, the period of benefit receipt in Poland, and you must have documents confirming employment in Norway. After submitting your application, your ZUS branch contacts NAV and the Norwegian office decides whether to grant you a benefit of a specified amount.
This is not possible. In order to be able to receive a Norwegian benefit, you must have worked in Norway for a minimum of three years and be entitled to a minimum pension.
Persons over the age of 60 who have been employed for the last 10 years are entitled to six months’ notice.
Entrepreneurs pay a compulsory social insurance contribution of 11.4%, which includes a basic pension contribution. Most Norwegian employers should cover their employees with an employee pension scheme (at a minimum of 2% on the gross salary) – such an entrepreneur may also belong to this scheme.
To register your family with UDI, you need to fill in the form available at: https://selfservice.udi.no. In the application, you provide personal details that match your passport details, purpose and reason for coming to Norway. With the registration confirmation, you will need to go to the police station, where you will need to present the required documents (the type of documents depends on the applicant’s individual situation), such as your identity document and employment contract. Upon successful completion of the registration process, a free confirmation (Registreringsbevis) is issued.
For more information about residence permits for children in Norway, see: https://pol-nor.com/po-porodzie and https://pol-nor.com/laczenie-rodzin.
The passport application available at the Consular Department must be accompanied by a photograph, birth certificate and the child’s previous passport or identity card, as well as the parents’ identification documents. It is necessary for both parents to sign a consent for the passport to be issued. The child should be present when applying at the office.
For more information on registering your child, please visit: https://pol-nor.com/po-porodzie.
Child benefit (barnetrygd) is available to parents from the moment a child is born until the child turns 18. The benefit is automatically granted when the child is born in Norway and registered with the Population Registration Office (Folkeregisteret). When the benefit is not automatically granted, the application can be submitted to NAV. Childcare allowance (kontantstøtte) is available to parents of children aged 1-2 years who do not benefit from a full-day kindergarten place.
The Polish 500+ programme is only available to people who do not receive family benefits in other countries. This is in order to counteract the phenomenon of the culmination of family benefits. Family allowance in Norway is available to contributing parents of children up to the age of 18, regardless of where the child lives.
It is worth reading the related article available at:
If the child’s parent is in Norway, it is possible to sign a private agreement regarding payment of child maintenance. You may also find it helpful to visit NAV Internasjonalt in Norway, the international office for social assistance abroad. The office helps to determine the amount of alimony taking into account currency differences and the income earned by the parents. According to Norwegian legislation, children are entitled to alimony up to the age of 18. If the child is continuing his/her education, he/she can apply to NAV for maintenance.
There are two ways to change your surname You can change your surname by providing your marriage certificate with an apostille or by filling in a form at: www.skatteetaten.no. The application for a name change can only be filled in after you have received your passport with your new name.
If you do not have a European birth certificate, you should have it translated into English or Norwegian.
Persons arriving in Norway for less than 6 months will be issued with a temporary personal number and will be able to receive free medical services.
In order to book a doctor’s home visit, you will have to pay what is called a „deductible”, which is a non-refundable lump sum that also applies to people covered by the Norwegian insurance scheme. A home visit costs approximately NOK 170-200 during the day, and up to NOK 300 on public holidays.
Healthcare in Norway is free for pregnant women and children up to the age of 12. At the first visit, the GP refers the woman to a midwife – the gynaecologist is only involved in the management of the pregnancy if there are complications. A pregnant woman has the right to free interpreter services before, during and after the birth.
Persons working or self-employed (who pay insurance premiums – trygdeavgift) in Norway are entitled to child benefit for children up to the age of 18 (parents, legal guardians). Child benefit is granted one month after you arrive in Norway with your child, or one month after the child is born – the benefit can also be claimed if the child lives outside Norway.
FLAT IN NORWAY
More information about renting a flat in Norway: https://pol-nor.com/mieszkanie-w-norwegii.
Useful vocabulary can be found at https://pol-nor.com/mieszkanie-w-norwegii.
A home loan is intended for people in difficult financial and housing situations. In order to obtain such a loan, you can apply to a company that provides counselling services to help you obtain financing. The assistance of such institutions is often free of charge.
You can also apply for a home loan at the relevant municipality (startlån). To do this, you should seek assistance from the municipality’s loan officers, who will provide you with all the necessary information and help you to complete the application. You must make an appointment with the municipality in advance.
The oppussing – lån til oppussing loan is a product for renovating a flat, which can be consolidated with a mortgage after the renovation is completed and thus reduce the interest rate. The specific conditions for the loan depend on the bank in question, but it is necessary to provide an estimate of the renovation and to meet the agreed work deadlines.
To get a letterbox sticker, fill in the flyttemelding form available at www.posten.no – a sticker will be delivered by post.
For detailed information on Norwegian notaries, see: https://pol-nor.com/notariusze-w-norwegii.
CAR IN NORWAY
Bringing a vehicle from Poland to Norway requires customs clearance and payment of 23% tax on the value of the vehicle.
Importing a car as resettlement property requires several conditions to be met:
– resettlement can be made within a maximum of one year from the date of removal,
– the car must have served its owner in Norway for the last 6 months,
– the car may not be rented or sold for one year from the date of importation.
You can register for the Auto Pass system using the form available at: www.autopass.no/visitors-payment and https://svinesund.csautopass.no/csn/newUser and follow the instructions.
– the user lives permanently outside Norway and the caravan is not used for commercial purposes, – the user is in Norway temporarily (the caravan can be used for a maximum of one year, after which an application must be made).
If you are a Pendler, you are not obliged to apply for a trailer – you only need to carry proof of your status.