Many cross-border enterprises coming to Norway for short- and long-term installation or construction projects. ECOVIS has summaries some of the major obligations for enterprises performing installation, building and other construction work in Norway.
- Organization number
A company that carries commercial activity in Norway must register with an organization number. All other reporting obligations must be reported by referencing the organization number.
- VAT Obligation
Obligation for VAT-registration will occur when your company has sold goods or services over NOK 50 000 during the last 12 months, if the revenue is VAT-liable in Norway. After the VAT registration, the company is obliged to file VAT declaration every two months.
- Payroll (A-melding)
Your company is obligated to report A-melding for employees who receive salaries when working in Norway. A-melding is normally handled as part of payroll process.
If an EU company is registered as a branch office without permanent establishment in Norway and only post its employees to Norway temporarily, it’s possible to apply for A1 certificate form from country of origin to avoid double paying social security contribution in both home country and Norway. For other countries having a social security agreement with Norway, it’s also possible to apply for a similar certificate.
- Report in Assignment and Employee Register (RF-1198/RF-1199)
An assignment given to a foreign subcontractor must be reported in Assignment and Employee Register. All assignment with a value over NOK 20 000 must be reported. The report is divided in two parts – the client must report in RF-1199 and the subcontractor must report in RF-1198.
- Company tax return
A company that carries commercial activities must submit annual tax return. Tax return must be submitted before 31 May each year. Should a company be not tax-liable in Norway, this must be specified in the tax return.
- RVO fee
All companies in building and construction industry must pay an annual membership fee, which is 0.02% of the company’s annual salary expenses. The minimum amount is NOK 250 per year. You will receive an invoice each year.
- Work permit
A non-EU citizen (including British citizen) must obtain a work permit when working in Norway.
- ID-check for EU citizen
An EU citizen is not required to obtain a work permit. However, the person must physically visit a local tax office to perform ID-check. An appointment is needed before the visit.
- D-number/national ID-number and Tax card
A foreign worker must apply for a D-number and tax card. This can be done together with ID-check. D-number is a temporary identification number that the person can use when interacting with different authorities. Should the person be permanently moving to Norway, he/she should apply for a national ID-number instead.
- HSE-card (Health, Safety and Environment Card)
All employees working on a construction/installation site must obtain HSE-card. Please be noted that HSE-card belongs to the employer and the card must be returned to employer when an employee leaves the company.
- Personal tax return
Depending on personal situation, a foreign worker might need to submit a personal tax return in Norway. Deadline for submission is 30 April each year. For those who is in PAYE tax-scheme, they do not need to submit tax return.
Other compliance topics
- Minimum wage
In building and construction industry, minimum wage is regulated. Information can be found here: https://www.arbeidstilsynet.no/en/working-conditions/pay-and-minimum-rates-of-pay/minimum-wage/
- Tax-liability/Permanent Establishment (PE)
When performing a project in Norway, your company might face the question on whether your business activities constitute a permanent establishment (PE) in Norway. PE means that the company has a fixed place of business in Norway, which will give the tax-liability for the company. You should look into the tax treaty to find out whether your project will constitute a PE.
- Audit obligation
On a general note, a company is subject to the audit obligation when one of the following conditions are met:
- Sales revenue over NOK 6 million
- Assets on balance sheet over NOK 23 million
- Average number of employees over 10 full-time equivalents
Get in touch with ECOVIS to ensure your compliance in Norway so you can focus on your core business.
ECOVIS is a leading global consulting firm with its origins in Continental Europe with over 9000 employees in 80 countries. In Norway, ECOVIS assists international companies with compliance and global mobility, from company registration through work permit application, legal advice, house finding, VAT returns, tax advisory, accounting to annual tax declarations.