Taxation of international executives
Are there social security/social insurance taxes in Norway? If so, what are the rates for employers and employees?
|Type of insurance||Paid by employer||Paid by employee||Total|
|Social security contribution||14.1%||8.2%||22.3%|
An individual working in Norway is subject to Norwegian social security contributions. The normal rate for the employer is 14.1 percent on gross earnings. The employee’s contribution is 8.2 percent based on gross wages.
There are three exceptions from Norwegian social security membership and payment of social security contributions that can come into force.
Conditions are strict and the employee needs to have a similar and satisfactory coverage as governed by the Norwegian social security scheme. An application must be filed towards Norwegian social security body.
In Norway, there is a mandatory occupational pension. This is paid by the employer and the minimum rate is 2 percent of gross income. Exceptions can be granted under certain conditions.
There are no gift or inheritance tax in Norway for 2020.
An individual resident in Norway for tax purposes on 1 January in the year following the income year is subject to net wealth tax on their worldwide wealth, please see below Non- resident individuals are only subject to wealth tax on certain property in Norway, generally on real estate and on assets connected to a permanent establishment or fixed place of business in Norway.
The municipal wealth tax is 0.7 percent of wealth above NOK1,500,000.
The state wealth tax is 0.15 percent of net wealth above NOK1,500,000. Taxable amounts are rounded down to the nearest thousand.
Marginal rate on wealth tax is 0.85 percent (0.7 percent + 0.15 percent).
The municipalities may levy a real estate tax. It is payable by the owner of the property, irrespective of their residence. The tax is computed on the assessed value of the property using a rate varying from 0.2 percent to 0.7 percent. The tax is payable on installments that are decided by the local authorities.
There are value added taxes, VAT, which is a general tax levied on sales within the country/jurisdiction and on import. Value-added tax is levied on goods and services, and applies to all stages in the chain of production and distribution. Any person engaged in trade or business is required to register and to charge and pay VAT on goods and services they supply. Value-added tax on inputs purchased by the registrants is deductible in the VAT accounts. Value-added tax is thus not a tax on the registrants but a tax on final consumption.
Are there unemployment taxes in Norway?
Are there additional taxes in Norway that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
Please contact KPMG Law Advokatfirma AS for additional information as there are some additional taxes that may be applicable depending on the actual circumstances.
If the employee is considered tax resident in Norway, they will have invoked a global tax liability. All income and wealth (assets) has to be declared in the Norwegian tax return.
All information contained in this publication is summarized by KPMG Law Advokatfirma AS, the Norwegian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Norwegian Income Tax Rates Act, the Social Security Act and Immigration Act, and subsequent amendments.
© 2021 KPMG Law Advokatfirma DA, a Norwegian member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.