Labor hire or the Enterprise Condition?

Understanding when you hire out labour in Norway or when you have an Enterprise-relationship with your Norwegian client, is difficult. We give you the tools in order to understand this division.

When hiring out labour, your employees are taxable to Norway from day 1. When there exist an Enterprise-relationship, the employees are only taxable to Norway if the project last more than 183 days during a calendar year or a 12-month period (depending on what is said in the country’s tax treaty).

However, the employees salaries need to always be reported in Norway for the work done in Norway, with our without the taxable amount.

As a routine, we always apply for the exemption of paying withholding taxes to the tax authority for our clients in order to make sure that the employees are freed from paying such taxes.

Remember that if you suddenly are considered of having a permanent establishment, the employees WILL BE taxable from day 1, and you need to reverse the already reported salaries and report them again with the taxable amount.

In any case, the taxes you pay in Norway, will need to be credited in your home country during the reporting of your enterprise’s tax declaration. (referring to the country’s tax treaty of avoiding double taxation)

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Our team has experience with companies in different branches - worldwide. We speak multiple languages and are passionate about helping customers within the area of accountancy and advisory, when settling and doing business in Norway.
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