FAQ about Norwegian Tax

Common FAQ fallacies

My current accountant tells me as I pay UK Corporation Tax, I don’t have to pay tax in Norway.

False in virtually every circumstance. You can avoid having to pay Norwegian Corporation Tax in some circumstances if you are able to take certain protective steps. If you don’t protect yourself you will get a punitive tax bill from Norway, and if you don’t take action in advance, you may not be able to reduce it to the correct level. Ill-informed advice of this sort is potentially very dangerous and likely to be very expensive for you.

All Norwegian taxes can be offset against UK liabilities, so I’ll have the same tax bill regardless of where I pay the tax.

Not all liabilities can be offset, and you can find yourself paying tax in Norway that you cannot offset against UK liabilities. Early advice is essential to avoid unnecessary costs.

I can offset my mortgage interest against my Norwegian tax.

True, to a certain extent but you need to understand the qualifying conditions and the limitations which we have detailed for you.

I’m never going back to Norway, so I don’t need to worry about paying tax there.

Utterly wrong. We have a good working relationship with the UK Inland Revenue team who pursue Norwegian tax debts in the UK, and we can tell you that they act as fiercely for foreign tax debts as they do for UK liabilities.

If I work in Norway through my own Norwegian limited company, I’ll be better off financially.

Generally, this is wrong and you are actually likely to be worse off overall, due to the complexities of the Norwegin tax system, and your possible exposure to the Wealth Tax in Norway. However, this can work for some people, especially if you intend to live in Norway permanently.

If I work in Norway through my own UK limited company, I’ll be better off financially.

Generally, this is correct and you are actually likely to be better off overall. BUT, there are some simple steps you must take early on to establish the best outcome for you. If you don’t get the right advice before you sign the contract, it is usually too late. In these circumstances, please contact us at the earliest opportunity.

My Norwegian tax return shows that I have overpaid tax. When will I get this back?

In most cases, the refunds are manually checked in detail before any release of the overpayment. Currently, the repayments are made in bulk towards the end of September or in October.

Umbrella companies

Speak to us about how we can meet your umbrella company needs in delivering up to 30% more income for Norwegian based contractors by simply applying the existing rules.

We know how to maximise your income across the various jurisdictions and we are not afraid to give you personal advice on how to maximise your position.

No bull, just straight talk and straight advice from chartered accountants who are there to look after your interests.

FAQ next steps

Contact us today to discuss what we can do for you or your company.

Obviously, we can also manage all your UK PAYE liabilities, and can deal with some other jurisdictions and double tax agreements – contact us for more details.