Installation/construction project compliance
A summary of the compliance demands a foreign construction company faces in Norway.
Project compliance has become more and more essential for companies coming to Norway. When you plan to start an installation/construction project in Norway, it’s important to understand the local regulations and potential obligations. Depending on the character of a project, your obligations can be very different.
A typical example can be that a company posts employees to Norway to perform short-term construction/installation/assembling work. From a view of project compliance, the following obligations might apply:
Compliance for companies
Registering a branch office (NUF) – In order to submit various statutory reports to the norwegian authorities, a foreign company is required to register e.g. a branch office and obtain an organisation number in Norway.
VAT – The services rendered in the project are VAT-liable when the total revenue exceeds NOK 50 000. The company is obligated to register for VAT and file bi-monthly VAT return.
RF-1198/RF-1199 – All assignments/projects awarded to a foreign Supplier must be reported in the Assignment and Employee Register, which is called RF-1198/RF-1199. This report includes information such as client, supplier, employees, project dates etc.
A-melding – Wages and taxes to the employees must be reported in the A-melding. This is a monthly report from the employer to various authorites. If the employer has A1 for the employees, national insurance (employer’s tax) is exempted in Norway.
HSE-card (Healt, Safety and Environment-card) – All employees working on construction site must have a valid HSE-card presented.
Compliance for employees
ID-control – Employees shall perform an ID-control at one of tax offices in Norway and apply for a tax deduction card.
Registration with the Police – If employees will stay in Norway for more than 3 months, it’s required to do a registration at the Police.
Work permit – In addition, work permit is required for employees from outside of the EU/EEA. More information can be found here: The Norwegian Directorate of Immigration
Personal tax return – Employees shall submit personal tax return when using a regular tax-scheme. No tax return is needed when using PAYE tax-scheme (Pay As You Earn).
For e-commerce companies that only sell goods/electronic services to Norwegian private consumers, the VOEC scheme might be relevant.
Latest posts
Outsourcing payroll management in Norway offers significant advantages for international companies, including ensuring regulatory compliance, reducing costs, minimizing risks, and accessing specialized expertise.
When it comes to receiving dividends from Norwegian companies, foreign shareholders should be aware of the associated tax considerations. In this article, we'll delve into the rules governing withholding tax deductions on dividends.
.png){kind=small}