Artikkel

Foreign entities with employees working remotely from Norway should prepare 

Deloitte Advokatfirma

During the pandemic foreign companies have often allowed employees to work remotely from Norway. Temporary “COVID-19” reliefs are expected to cease from year-end.

January 2022

The compliance implications of allowing remote work from Norway have been limited during the income years 2020 and 2021 since Norwegian authorities have offered temporary reliefs from Norwegian compliance obligations during the pandemic to ease the administrative burden on foreign companies. These reliefs are expected to cease from year-end

Corporate taxation

Norwegian authorities have offered temporary relief from corporate taxation for foreign companies with employees working in Norway provided that the activities would not normally have been carried out from Norway. Such income has been defined as not taxable according to Norwegian law, which also implies that no corporate tax declaration is required for the foreign company.

The temporary relief is expected to cease from 1.1.2022. This implies that foreign entities should consider whether allowing remote work from Norway could imply a risk for Norwegian corporate taxation as well as a corporate tax filing obligation from 1.1.2022.

Reporting obligations

Norwegian authorities have offered temporary relief from Norwegian payroll reporting and tax withholding obligations for foreign companies with employees working in Norway during the pandemic. The relief applies for foreign entities with employees working here from the home office due to the COVID-19 pandemic and who have worked abroad for the foreign company prior to the pandemic.

The temporary relief is expected to cease from 1.1.2022. This implies that foreign entities should consider whether allowing remote work from Norway following this date could imply a risk for Norwegian payroll reporting and tax withholding requirements.

Who should prepare?
  • Foreign entities with employees working remotely from Norway

Please reach out to us if your company would like assistance in evaluating your remote workforce.

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