|Fixed costs are:
||Variable costs are:
First of all, you must pay income tax - 22% on the company's profit, in addition, after exceeding the thresholds established for the tax year, the Norwegian entrepreneur must add specific amounts to interest on the excess. It is compulsory to pay social security contribution - 11.4% and VAT, if the company is registered in the register of payers. When an entrepreneur employs at least one employee, he must pay an employment tax of 14.1% on the amount of gross wages.2. What is the output tax in Norway?
Input tax is value added tax - calculated on the value of goods and services sold - paid to the tax office.3. What is input tax?
Input tax is value-added tax - added to the value of taxable goods and services - which can be deducted in the VAT return.4. What services are not subject to Norwegian VAT?
Financial, insurance, health and cultural services are not subject to VAT - this means that if you are operating in one of the listed industries, you are not required to register in the register of payers and issue invoices with input VAT.5. Who is required to have a tax identification number in Norway?
In Norway, every registered business must have a tax identification number (Organisasjonsnummer).6. What is a tax identification number used for in Norway?
A tax identification number (Organisasjonsnummer) is necessary to deal with the formalities of running a business - it is used to identify legal entities, pay insurance premiums, advance tax payments or VAT.7. How do you obtain a Norwegian identification number?
You can get a tax identification number (Organisasjonsnummer) after registering your business with the Enhetsregisteret.8. What is a double taxation agreement?
The Double Taxation Agreement (dated September 9, 2009) is about defining the rules of cooperation between Norwegian and Polish entities so that taxes are paid in only one of the countries. It also aims to prevent income tax evasion.9. Who is affected by limited tax liability in Norway?
Limited tax liability applies to those who stay in Norway for no more than 183 days in a year or less than 270 days in three consecutive years, in which case only income received from a Norwegian employer is taxable in Norway (all income must be reported in the tax return in the home country).10. Who is a tax resident in Norway?
To be a tax resident, you must be in Norway for more than 183 days in a year or more than 270 days in three consecutive years, in which case all income is taxable, and all income earned is shown on your Norwegian tax return. You can also show ties to Norway, such as the fact that you own an apartment, bank account or business in the country.11. What deductions can be made on the Norwegian tax return?
Deductions depend on the tax credits that are available and used - taxpayers can deduct, among other things, travel expenses (e.g. airline tickets), housing rental costs, kindergarten costs, loan interest, etc.12. Can the deadline for filing a tax return in Norway be postponed?
To extend the deadline for filing a tax return, you must file an application stating the reason for the delay - this can be done through Altinn.no.13. The tax base is calculated on net or gross turnover?
Income tax in Norway should always be calculated on income calculated in net amounts.14. Is it possible for an entrepreneur to deduct the tax-free amount in Norway?
The tax-free amount (Minstefradrag) applies only to employees (104,450 NOK for a full year of work) - this means that an entrepreneur cannot take advantage of this particular deduction. Business owners have the option to deduct Personfradrag - on income less than NOK 52,450 the entrepreneur does not have to pay tax.15. How much is Norwegian income tax?
Income tax is 22% on the company's profit - but once you exceed the tax thresholds established in Norway, you must pay an additional percentage on the excess income.
The tax thresholds in Norway for 2021 are:
Income tax in Norway is calculated by the office on the basis of the income declaration for the next year submitted by the entrepreneur (either after the start of the business or at the beginning of the year) - 22% for income tax and 11.4% for social security contributions. Income tax is paid in the form of advance payments on specific dates.17. What does the amount of income tax in Norway depend on?
The amount of income tax depends on the income and the period for which the entrepreneur has worked in Norway - the amount of tax payable is also affected by the tax credits to which you are entitled.18. When is the deadline for paying advance payments for Norwegian income tax?
Advance payments for income tax (in four installments) should be paid on the dates specified by the office:
An entrepreneur should file a tax return by May 31 - the return (Skattemelding) should show income earned and tax deductions applied.20. What are the consequences of not filing a tax return in Norway by the deadline?
Failure to file a tax return will result in the office charging the tax due for payment - an entrepreneur who fails to meet his tax return obligation will receive a financial penalty for failing to meet the required deadline.21. What fees are payable by an entrepreneur in Norway who employs employees?
An entrepreneur who employs workers should pay employment tax - Arbeidsgiveravgift of 14.1% to 0% (depending on the zone). You should also pay Feriepenger - 10.2% of the gross salary amount and mandatory pension insurance OTP (Obligatorisk tjenestepensjon) - at 2% of the gross salary amount. Entrepreneurs in Norway also have to reckon with the possible costs of sick leave (the company pays the employee for the first 16 days of benefits), training (including HMS training) or work clothes.
MVA (Merverdiavgift) is the tax on goods and services, or VAT, in Norway. VAT payers should put the abbreviation MVA after the company's organizational number on their invoices.2. What is the abbreviation MVA used for?
The abbreviation MVA should be placed after the organizational number on invoices issued by a VAT-paying company.3. Who is obliged to pay VAT in Norway?
In Norway, the obligation to pay VAT applies to companies with a turnover of more than NOK 50,000 in a consecutive twelve-month period - you must then register your business in the VAT register.4. How can you report your business to the VAT payers' register in Norway?
Notification of the business to the VAT payers' register is done by filling out the Samordnet registermelding DEL 2 form and sending it to the office together with the invoices issued by the company for NOK 50,000 in sales (inclusive) - you can also apply through the Altinn.no portal.5. How long does it take to register for VAT in Norway?
It takes about a month to register your business as a VAT payer.6. How much is the VAT rate in Norway?
The amount of Norwegian VAT depends on the type of goods / services:
Advance payments for VAT in Norway must be paid on the dates specified by the office:
You can file your VAT return electronically via Altinn.no within certain deadlines.9. How is Norwegian VAT calculated for imported goods?
For imported goods, the amount of Norwegian VAT is calculated on the amount of purchase of the goods.10. How often is VAT settled in Norway?
VAT must be settled every two months on the dates set by the office - April 10, June 10, August 31, October 10, December 10, February 10. Businesses whose income does not exceed NOK 1,000,000 have the option to settle once a year.11. Can Norwegian VAT be settled once a year?
Businesses whose income does not exceed NOK 1,000,000 have the opportunity to settle once a year - an appropriate application must be submitted to the office by the end of January.12. Should an AS company also settle tax in Norway every two months?
AS company (with income not exceeding NOK 1,000,000) has the option to pay tax once a year - by the end of January, the appropriate application must be submitted to the office.13. Who is a VAT attorney in Norway?
A VAT attorney represents a company in tax matters and is responsible for calculating and paying VAT on behalf of a foreign company that does business with a Norwegian contractor - an attorney can be a company or a person with a Norwegian permanent personal number.14. Is it possible to recover VAT for goods purchased prior to registration of the business in the payer's register?
It is possible to recover VAT on goods purchased prior to registration of a business in the payer's register - you should submit an appropriate application to the office.15. How can VAT be recovered for goods purchased before registering the business in the payers' register?
An entrepreneur who wants to recover VAT for goods purchased before registration of the business in the VAT payers' register should, together with the first VAT return, submit a return for the period before registration of the business as a VAT payer.16. How can VAT be recovered for goods imported from Poland?
When the vendor has issued an invoice to the entrepreneur with input VAT, one should insist on issuing a corrected invoice - after receiving a zero invoice, the company will receive a refund of the overpaid VAT.17. What to do when the office charges too much VAT?
When the VAT charged by the office is too large, you should re-check the tax return sent to the office and possibly appeal the office's decision with the reasons for the request.18. How to check if a company is a Norwegian VAT payer?
A company registered in the VAT payer register will be marked on www.brreg.no - in the foretak/selskap field, enter the name of the company, if it displays: Registrert i Merverdiavgiftsregisteret, the company is a VAT payer.19. What is a zero invoice?
A zero invoice is an invoice without input VAT - issued by foreign sellers (for imported goods) and for exports of goods abroad in Norway.20. How to file a tax return online?
You can file a tax return using Altinn.no - you need to fill out form RF-0002, based on the completed application the system will calculate the amount of tax to be paid (field avgift å betale) or to be refunded (field til gode).
The tax breaks that apply in Norway are Standardfradrag, pendler status and ordinary settlement.
Note that as of 2019, the 10% relief is eliminated.
Standardfradrag is a tax deduction (10%) - the write-off cannot be greater than NOK 40,000.3. Who can benefit from the Standardfradrag write-off?
The Standardfradrag write-off is available to those who have been working in Norway for no more than two years - the duration of stay is documented with, for example, a registration certificate.4. What documents are needed to settle the 10% relief?
When settling the Standardfradrag, you must fill out a preliminary tax return (Skattemelding) marking the relief and stating the amount of the deduction - the office verifies whether the deduction is legitimate and sends the taxpayer the final amount of tax to be paid (Skatteoppgjøret).5. What does it mean to have Pendler status?
Pendler status is granted to individuals who meet certain conditions, including that they regularly visit family in their place of permanent residence - this type of relief allows for the deduction of expenses such as travel to the home country or the cost of renting an apartment in Norway.6. Who can benefit from Pendler status?
Pendler status can be used by a person who has a family (spouse/children) in the home country - a marriage certificate and proof of joint registration with the family must be presented to confirm this fact. Regular visits to the home country can be proven with airline tickets, bus tickets or from boat trips.7. What can a person with Pendler status deduct?
A person with Pendler status can deduct the cost of renting an apartment, electricity bills (in a rented property) or travel to the home country - the person taking advantage of the deduction should show copies of rent or electricity bills, a rental agreement or confirmations of travel to Poland.8. What documents are needed to settle as a Pendler?
To settle as a Pendler, a set of documents must be provided:
Ordinary settlement is a type of tax deduction in Norway that can be used by people who are not eligible for other deductions - you can deduct childcare costs (kindergarten, day care center), commuting expenses or interest on a loan.10. What documents are needed to make an ordinary settlement in Norway?
To file an ordinary settlement you must have: