FAQ

  • 1. Holiday pay

    What is holiday pay?
    Holiday pay is money accrued on tax liable pay to compensate for the loss of income when you take holidays.
    What is the holiday pay rate?
    The minimum holiday pay rate is 10.2%, although most employees accrue 12%. For example, if you earn NOK 50,000 in one month and your holiday pay rate is 12%, you will accrue NOK 6,000 in holiday pay towards future holidays.
    Is holdiday pay paid every month?
    No. Employers are not allowed to pay holiday pay on an ongoing monthly basis. Holiday pay is settled the following calendar year or at the end of your contract / employment, whichever comes first.
    What happens the first year of employment?
    As holiday pay cannot be settled in the current calendar year, you will not receive any holiday pay the first year.

    If i am paid monthly, will i recieve both wages and holiday pay at the same time?

    No, holidays are unpaid. If you receive a monthly wage, then any holidays you take are deducted from your wages. Normally the full holiday pay allowance (21 or 25 days) are deducted in May or June at the same time as the previous year's holiday pay accrual is paid.

    Do older workers get more holiday pay?

    Yes, from the calendar year you turn 59 you will accrue an additional 2,3%, and from the year you turn 60 you get 5 additional holidays.

2. Expenses

What are business expenses?
Business expenses can be refunded if you are undertaking a business trip on behalf of your client, ie you are going somewhere else than your normal place of work in Norway. Business expenses can not be refunded for trips between your home and your place of work.
What are commuter expenses?
Commuter expenses can be refunded / payrolled for candidates that have to stay away from their normal home to work. In order to qualify as a commuter, you must have access to your home at all times, meaning you cannot rent it out. As a general rule, your home must be larger than the dwelling you occupy in Norway and you must go home at regular intervals.
What expenses can be refunded?
The three most common refunds are travel, accommodation and food (per diems). If you have to purchase equipment in order to undertake your job, then we may be able to payroll these as expenses, subject to Norwegian law.
Are expenses tax free?
Yes, business and commuter expenses are tax free, however tax free amounts are capped for per diem allowances.

Do i need reciepts?

Yes, you need receipts for all expenses except from per diem allowances.

Do I need to sign an expense claim?

Yes, by law you must sign a detailed expense claim. We will prepare the claim for you and you sign digitally.

3. taxes

How much tax do i have to pay?
It depends on which tax scheme you are on. There are two schemes; the normal progressive tax scheme and a fixed rate expat tax scheme (PAYE).
the progressive tax scheme
Most people are on the progressive tax scheme. On the progressive tax scheme, your tax rate increases along with your income. Tax on income can there fore range from 0% to 47,4% on your highest income. On the progressive tax scheme, you may be able to receive tax-free expenses.

the expat tax scheme (PAYE)

You can be on the expat tax scheme if your annual income is lower than NOK 725 050 and you havenot been a tax resident for more than one year. Being a tax resident is not necessarily the same as paying income tax in Norway. If you exceed the threshhold of NOK 725 050 during the calendar year, you will be placed on the progressive tax scheme and it will be backdated to January 1st. It is therefore important to monitor your income to avoid unpleasant surprises.

Which tax scheme is best for me?

Assuming you are eligible for both schemes, and assuming you have no expenses, and assuming you are in Norway for all 12 calendar months, you will benefit from the expat tax scheme if your income is higher than NOK 667 650. But do remember that your income cannot exceed NOK 725 050.

Do i have to complete a tax return?

Not if you are on the expat tax scheme. If you are on the progressive tax scheme, then you will receive a pre-completed tax return. If you don't change it or if you don't file it, then you will accept the pre-filled version. The government will use the tax return to assess your taxes. If you have overpaid, then you will get money back. If you have underpaid, you will get a tax bill.

Will i get help with taxes?

We will advise you on which tax system might be best for you.