FAQ

To open a company in Norway, you must register with the Brønnøysund Register Centre and obtain an organization number. Then, you need to choose a legal form for your business, submit the necessary documents, and meet the financial requirements. It is also advisable to seek advice from an accountant or lawyer specializing in Norwegian tax law.

The simplest form of business in Norway is a sole proprietorship (ENK – enkeltpersonforetaket). It has a relatively low entry threshold, allowing one person to run a business. There are no additional start-up costs. The formal requirements are relatively low, but it is still important to comply with tax and registration regulations.

In Norway, there is a Value Added Tax (VAT – moms) with a standard rate of 25%. However, there are also reduced rates for certain goods and services, such as 15% for some types of food. Businesses are required to pay it to the Norwegian Tax Administration every two months, which means 6 times a year.

The income tax rate in Norway is progressive and depends on the level of income. In 2023, the rates ranged from 22% to 45%. This means that the higher the income, the higher the percentage of income tax. Additionally, for sole proprietorships, apart from income tax, the entrepreneur also pays an 11% “trygdeavgift” – the Norwegian equivalent of social security contributions.

Yes, as the owner of a sole proprietorship in Norway, you can pay income tax advances at specific intervals to avoid unexpected tax burdens. The amount of the advances depends on the estimated income. An ENK company can make 4 advance payments per year. Moreover, these payments can be adjusted if, for example, during the year you realize that your income has increased or significantly decreased.

In the case of a limited liability company (AS), it is also possible to pay tax advances, which are typically set as two payments in the first half of the year. The Norwegian Tax Administration (Skatteetaten) usually calculates the amount of these advances based on the previous year’s income. New companies have the option to report their estimated income at the beginning of the year.

The responsibilities of an employer in Norway include maintaining detailed records related to employees, such as employment contracts, payroll reports, payment of occupational injury insurance, and mandatory occupational pension insurance (OTP). Employers must also ensure safe working conditions and comply with Norwegian employment regulations.

A “skattetrekk” bank account is a special bank account in which employers in Norway hold income tax advances deducted from their employees’ salaries. It is a mechanism for collecting and transferring income tax to the Norwegian Tax Administration. Importantly, once money is transferred to this account, it cannot be transferred back to the company’s account—transfers can only be made to the tax authority.

The employer’s tax, known as “arbeidsgiveravgift,” is approximately 14.1% (as of 2023) and is mandatory for employers in Norway. The rate varies depending on the zone (sone). The standard and highest rate is 14.1%, but municipalities located farther north in Norway may have reduced rates of 5.1% or even 0%.

A company must be registered with the Norwegian Tax Administration (Skatteetaten) as a VAT payer once it exceeds an annual turnover of 50,000 NOK. After surpassing this threshold, the company is required to charge and pay VAT on its sales. Importantly, VAT must be added to the first invoice that causes the turnover to exceed this limit.

Yes, a spouse can help in running a business in Norway, but it depends on the specific legal form of the company. In a sole proprietorship, the income from the business must be divided between the spouses in their individual tax returns (skattemelding). In a limited liability company (AS), each spouse must be registered as an employee and receive a salary.

Fixed business expenses may include office rent, insurance, software and service subscriptions. If the company uses a business vehicle, this also includes fuel, tolls, and repairs. Other costs may include the purchase of tools or work clothing.

Yes. When running a business in Norway, it is possible to deduct car-related expenses. The rules differ for sole proprietorships and limited companies. The type of vehicle also matters. A Varebil class 2 (commercial van with green plates) allows VAT deductions, while a passenger car (personbil) does not. In a sole proprietorship, you can either use a mileage log (kjørebok) or purchase a car under the business. In both setups, it's important to note that private use of a company car leads to reduced deductions or, in the case of a limited company, taxation of the employee or owner for the benefit of using the company vehicle.

Of course, it is possible. However, you must follow customs procedures and ensure proper documentation. For such a purchase to be considered a business expense, it must be declared at the border with TollEtaten, and you must have the invoice issued to the company. If you use an external carrier, you will also need transport documents such as SAD or CMR.

Altinn is an online portal in Norway that allows businesses, individuals, and institutions to report tax information and access various online services, such as submitting tax returns or registering companies.

UDI (Utlendingsdirektoratet) is the Norwegian Directorate of Immigration. It is a government agency responsible for matters related to immigration and the regulation of foreign nationals in Norway, including issuing visas and work permits.

A skattekort is a document issued by the Norwegian Tax Administration (Skatteetaten) that determines how much tax will be deducted from an employee’s salary. It takes into account factors such as income, tax deductions, and other elements affecting the tax burden. For newcomers, there is an option to use the kildeskatt 25% scheme. This means that 25% tax is withheld from the salary, and there is no refund or additional payment when filing the annual tax return.

Yes, as an employee in Norway, you can change your tax card (skattekort) if your financial or personal situation has changed. You can do this online via the Altinn portal or by contacting the Norwegian Tax Administration.

Feriepenger are funds allocated for employee vacation in Norway. They amount to 10.2% of the employee’s annual gross earnings and are accumulated throughout the year.

An employer in Norway is required to pay holiday pay (feriepenger) to the employee before a specified deadline, usually between May 1st and June 30th. This date may vary depending on a collective or individual agreement with the employee. Often, employers settle feriepenger when the employment relationship ends. It's important to note that feriepenger paid in the following year is exempt from tax withholding, meaning the employee receives 100% into their bank account (this does not apply to employees under the kildeskatt scheme). However, if holiday pay is paid within the same year, it is subject to tax withholding according to the employee's skattekort.

The HMS card (Helse, Miljø og Sikkerhet – Health, Environment, and Safety) is a Norwegian card that confirms an employee or company complies with workplace health, environmental, and safety regulations. Byggekort is a specific type of HMS card issued to construction workers. It confirms that the person has the required qualifications and has completed safety training for construction sites. Renholdskort is the HMS card for cleaning staff. It grants workers access to facilities where certain hygiene and safety standards must be met. Having the appropriate HMS card, such as a byggekort or renholdskort, is often mandatory on many construction sites and workplaces in Norway to ensure safe and legally compliant working conditions.