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 to the payment of the social security contributions.
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.
Are there any gift, wealth, estate, and/or inheritance taxes in Norway?
There are no gift or inheritance tax in Norway for 2017.
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 his/her worldwide wealth. 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 NOK 1 400,000. .
The state wealth tax is 0,15 percent of net wealth above NOK 1 480 000.
Taxable amounts are rounded down to the nearest thousand.
Marginal rate on wealth tax is 0.85 percent (0.7 percent + 0,15percent).
Are there real estate taxes in Norway?
The municipalities may levy a real estate tax. It is payable by the owner of the property, irrespective of his/her 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.
Are there sales and/or value-added taxes in Norway?
There are value added taxes, VAT, which is a general tax levied on sales within the country 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 he/she supplies. 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.
Is there a requirement to declare/report offshore assets (e.g., foreign financial accounts, securities) to the country’s fiscal or banking authorities?
If the employee is considered tax resident in Norway, he or she will have invoked a global tax liability. All income and wealth (assets) has to be declared in the Norwegian tax return.
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