- Overview: Norway
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Norway
Getting your business up-and-running in Norway can be challenging, especially if you do not speak the native language. Establishing your own business entity in Norway is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Norway, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Norway, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in Norway
Navigating the Norwegian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Norwegian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Norway without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Norway. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in Norway
Employment related taxes
Personal income tax (PIT). (step tax) is levied on income from employment and pensions, and no deductions are allowed.
Taxable income generally includes salaries and wages, bonuses, directors’ fees, benefits in kind, annuities and pensions, whether the benefit is earned over a period of time, occasionally or on a single occasion. Most allowances and fringe benefits are considered taxable income.
Directors’ fees. Nonresident and resident directors are taxed on directors’ fees from Norwegian companies. Directors’ fees are taxed in the same manner as employment income.
The scheme is financed by the individual’s and employer’s social security contributions in addition to grants from the state and the municipalities.
The rates are determined by the Parliament in the annual decrees on contributions to the National Insurance Scheme.
Tax resident employees. Individuals resident in Norway are subject to tax on their worldwide income. Nonresidents are taxable on Norwegian source income only. Wages and remuneration may be considered Norwegian-source even if an employer has no permanent establishment in Norway.
After emigrating from Norway, an individual continues to be considered a resident for tax purposes if the individual, or someone closely related to him or her, maintains a home in Norway. After emigrating from Norway, an individual who does not maintain a home in Norway is considered to be a resident if the individual stays in Norway for more than 61 days per income year.
Special rules may apply to individuals working on the Norwegian Continental Shelf.
Non-tax resident employees. Nonresidents are also subject to tax at the same rates that apply to residents on the following amounts: – Income from, and capital invested in, activities carried on or managed either in Norway or on the Norwegian Continental Shelf:
- Income derived from providing employees for principals who are carrying on activities in Norway
- Income derived from, and capital invested in, real and movable property located in Norway
- Fees paid to foreign entertainers and artists for performances in Norway Nonresidents may also be subject to Norwegian taxes if they participate as general partners or limited partners in businesses carried on in Norway.
Nonresidents are subject to tax if they engage or participate in business or other economic activities carried on or administered in Norway.
- Moving expenses from a foreign country/territory to Norway when the move is initiated by employment in Norway.
- Business expenses
- Special regulations apply for commuters.
Payroll Cycle in Norway
Unless otherwise agreed, salary shall be paid at least twice a month. However, it is most common to agree on a monthly pay. Usually, the wage consists of a basic salary along with numerous benefits, as well as overtime payment based on the employee’s overtime the previous month. The wage may also depend on the performance of the employee. As a main rule, the employer is not entitled to deduct from wages.
Non-payroll taxes in Norway
The general VAT rate is applies to all supplies of goods and services not qualifying for another rate or an exemption. A reduced rate applies to supply of food and beverages, excluding tobacco, alcohol, medication, and water from waterworks. The reduced rate is not applicable to the supply of food and beverages consumed in restaurants and other food establishments.
The reduced VAT rate applies to domestic passenger transport services and procurement of such services, domestic ferry services related to transport of vehicles, accommodation services, cinema tickets, museum and gallery tickets, amusement park tickets, and sports events.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Norway
Compensating your local and expat workforce in Norway and closely adhering to Norwegian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Norwegian labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Norway by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Norwegian laws. To get the latest updates on taxation in Norway and in 190 countries worldwide, contact Acumen’s team of global employment experts.