Today’s tax puzzler from a client

Tax puzzlerTax puzzler from a client

Today’s tax puzzler proved to be quite a challenge to disentangle and communicate to the client, but we got there for the client.  This might give you some flavour of what we can do for our clients.

  • The client is a UK national now living and married in Norway
  • The client has a UK company which is registered as an NUF in Norway
  • The client is tax resident in Norway
  • The client has a contract in a mainland European EU country which is going to be delivered in that country over the next 12 months
  • The contract is in Euros and the expenses are in Euros

Questions:

  • Does the company have to register for VAT/MOMS?
  • What payroll taxes will be due and in which country/countries?
  • How much will the net income be after payroll, corporate and personal taxes?
  • Can we manage all the compliance issues for him in all the jurisdictions?
  • And our solution to this tax puzzler mustn’t affect his entitlement for benefits and pension in Norway

A bit of a challenge, but we got there, and have a happy client as a result.

The compliance is not overly onerous, but it needs to be right from the outset, and we can help him through the multilingual maze.  We will register his company for MOMS, and register his company in the EU country with their tax authorities.  We have identified a highly tax efficient solution for the taxpayer delivering all he requires, with the option to increase the tax cost to increase his Norwegian pension entitlement if that is what he prefers.

We also identified where a small international tax saving would be outweighed by the compliance costs, and have recommended that the cost be carried by the company rather than pay us €1,000 to save €400.

We like a challenging tax puzzler from our clients.