OUR ACCOUNTANCY AND TAX SERVICES
We offer the following services:
- Book-keeping
- Payroll and expat services
- Preparation and submission of VAT returns
- Preparation of monthly, quarterly or yearly management accounts
- Preparation of accounts
- Completion and filing of online company tax returns
- Completion and filing of online individual tax returns
- Board secretarial and nominee services
- Tax advice for small/medium sized businesses and individuals
- Resident and non-resident tax advice
- IC Cards for workers
BUSINESS SET UP -NORWAY
In Norway you can set up the following form of business:
- Limited Company either Private or Public (AS or ASA)
- Partnership (ANS or DA)
All businesses have a legal requirement to keep full and complete books and records.
LIMITED LIABILITY COMPANIES – A/S
All Limited Companies must file accounts once a year with the Register of Business Enterprises in Norway. This must be done within 3 months of the company year end. These should be prepared by a Registered Accounting Firm. An Audit will not be required unless you meet certain levels i.e. an annual turnover greater than NOK 5M (£540,000 – € 640,000).
PARTNERSHIP
This can be between two or more individuals or companies but you do not have limited liability.
SOLE TRADER
This is when you trade as an individual.
MAIN TAXES IN NORWAY
In Norway there are two main kinds of tax:
- Corporate Tax
- Personal Income Tax
There may also be additional taxes based on income, such as Capital Gains Tax and Inheritance tax.
CORPORATION TAX
This is based upon the taxable profits of the business.
Maximum tax rates in Norway:
- Corporate Tax: 28%
- Tax as self –employed tradesman: 51%
- Taxation on profit: 28%
- Capital Tax: 1.1% (only for sole trader)
- Employers national insurance contributions: 14.1%
VAT
As a basic rule, a foreign business engaged in activities which are liable for VAT within Norway’s border must register in the Norwegian VAT register. If the foreign business does not itself have a permanent establishment for the operation in Norway, this should be done through a Norwegian VAT representative.
The foreign business is subject to Norwegian VAT legislation when the business is active within Norway’s borders, so that, as a rule, Norwegian VAT liability arises when the foreign VAT liability does not apply.
A foreign commercial undertaking may choose to register for VAT purposes in Norway through a representative, to enable the company’s Norwegian customers to take delivery in Norway of goods which have already been cleared by customs. In many cases, this is a simple and flexible way to make it possible to sell goods in Norway.
A foreign company having project-oriented activities with the Norwegian border has to file for a Norwegian VAT number. If the activities are planned for a period of less than a year or connected to a single project, this may be done through a VAT representative. If more permanent and continuous activities are planned (usually for more than 12 months), registration of a branch or subsidiary is necessary in Norway. The operation will be liable for Norwegian company tax, according to the wording in the tax treaty between Norway and the home country of your company.
All Norwegian businesses must register for VAT once their turnover exceeds NOK 50,000 (£5,400 or € 6,400).
VAT rules are highly complex and must be discussed with an accountant before a business commences. Please also observe that as Norway is outside the EU there will be local requirements to follow and other rules for reversal of charges.
PERSONAL INCOME TAX
The rates are as follows:
- Personal Income Tax: Maximum 47.8%
- Average 30-40%
- Including social security contribution: 7.8%
- Capital Tax: 1.1%
INHERITANCE TAX
The rate of Inheritance Tax stands at 10-15%.
USEFUL LINKS
http://www.brreg.no/english/ – Register of Business Enterprises in Norway (Companies House)
http://www.skatteetaten.no/en/internationalpages/ – Tax Authorities
http://www.arbeidstilsynet.no/artikkel.html?tid=99917/ – Labour Inspection (ID Cards)
Enquire About Our Accountacy & Tax Services
For further information, please contact us on +44 (0)208 421 7474 or fill in the form below: