Taxes for branches of foreign companies (NUF)
It can broadly be said that in case of a NUF that has been set up by a company abroad and of which is entirely managed and run in Norway, both the company and the NUF will normally be domiciled for tax purposes in Norway and therefore liable to pay tax to Norway for the whole business.
On the contrary, if both the enterprise and the board management takes place abroad, only the branch will be liable to pay tax to Norway on the business that is carried out through a permanent establishment in Norway.
However, the tax liability may be limited if the NUF is run from another country and does not have a permanent place of business or domicile in Norway. The tax treaties between Norway and the home country will therefore be crucial for the tax liability.
See further the section about the Tax Treaty
See also the section about Establishment in Norway
Taxes for Limited Companies
Companies and other businesses that are domiciled in Norway are subject to the ordinary tax liability.
Either you set up a NUF in Norway or a Ltd. Company, the deadline of submitting the taxes remains the same – 31st of May each year. The tax settlement will take place during the Autumn the same year as the tax declaration was submitted.
Limited Tax Liability
Companies and other businesses that are not domiciled in Norway and self-employed persons who are not resident in Norway may become liable for tax in Norway on income generated through activity that they carry on or participate in and which is operated or managed from Norway. They may also become liable to pay tax for the hiring of labour to Norway.
See further the section about Labour Hire and the Enterprise condition
Withholding taxes on employees payrolls
Many companies pay their employees salaries in their home country. When certain conditions are met, the foreign companies need to deduct Norwegian taxes on the salaries and report and pay the taxes to Norway for the work carried out in Norway. We have years of experience and good routines on how to carry out such reporting.
If, under some conditions, the employees are not due to pay taxes in Norway on their salaries, the salaries still need to be reported without the taxable amount. Our practice is then to apply for exemption of paying withholding taxes in Norway. When this is approved by the tax authority, our client can always be sure that they are staying compliant within the taxable field of the employees.
See further the section of Payroll & HR Services