Tax for branches of foreign companies (NUF)
An NUF is a branch of a foreign company. For each individual company, a decision must therefore be made as to whether the enterprise or the NUF will be domiciled for tax purposes in Norway or in the enterprise’s home country.
Tax affinity
In simple terms, it can be said that in the case of an NUF which has been set up by a company abroad and which is entirely managed and run in Norway, both the enterprise and the NUF will normally be domiciled for tax purposes in Norway and therefore liable to pay tax to Norway for the whole of their business.
The Norwegian Tax Administration on Foreign limited companies
If the enterprise is domiciled abroad and the board management takes place abroad, only the branch will be liable to pay tax to Norway on the business that is carried out through a fixed place of business in Norway. This also applies to manpower enterprises which are run at their own expense and risk in Norway.
However, the tax liability may be limited if the NUF is run from another country and does not have a fixed place of business or domicile in Norway. Tax treaties between Norway and the home country will also be of importance for the tax liability. You should therefore familiarise yourself with any tax treaties.
Calculating tax
The tax calculation for NUFs which are liable to pay tax to Norway will depend on the organisational form of the foreign company. In the case of foreign companies with limited liability (corresponding to a private limited liability company, for example), tax must be calculated at the rate of 22% of the profit in Norway. However, the tax, which is known as 'advance tax', does not have to be paid until the year after that in which the profit was earned.
IIn order for an NUF to have their tax calculated for the first income year, an "Application for change to/claim for advance tax for non-personal taxpayer" has to be submitted through Skatteetaten.no.
The same form must be used if you wish to alter your advance tax, e.g. because of changes in your income.
In the case of NUFs which have also submitted a tax return previously, the advance tax will be calculated based on the most recent assessment.
Payment
Tax must be paid in two equal instalments during the first six months after the income year. The deadlines for these instalments are 15 February and 15 April.
If the amount of tax that has been paid is expected to be too low relative to your income, with the result that you may incur underpaid tax, you can pay an additional advance by 31 May.
Summaries of how much tax is to be paid are distributed by the Norwegian Tax Administration via Altinn in January. Make sure that the contact details for the NUF are up-to-date in Altinn, so that you can receive an e-mail notification when they become available.
You will be sent a payment form with an account number and a KID number. Payment must be made to the Norwegian Tax Administration, or alternatively to the International Tax Collection Office. If you wish to pay an additional advance, you must generate a KID number on the Norwegian Tax Administration's website. You will also find the account number for payments there.
Generate KID numbers for tax for businesses
When the tax return is processed, any underpaid tax will be calculated. You will be sent a payment slip if any underpaid tax is outstanding.
Reporting
The tax return for the branch must be submitted to the Norwegian Tax Administration by 31 May.
Norwegian-registered foreign enterprises (NUFs) are required to submit their tax return using an accounting system or an annual settlement system, similar to private limited liability companies (AS).
Some foreign NUFs, which fall under the EEA regulations, may have their license for annual reporting programs covered by the Norwegian Tax Administration.
To fall under this regulation, the company must
- Be domiciled in an EEA state
- Have a turnover of less than NOK 5 million
- Have temporary activity in Norway
Contact the Norwegian Tax Administration via the contact form and select the category 'Norwegian-registered foreign enterprise' if this applies to your business. In the contact form, you must provide the name and email address of the representative of the company with signing authority.
Branches which had no turnover during the income year or which were registered towards the end of the income year must also submit a tax return.
