Double taxation UK/Norway

  • Thread starter matteo.trombetti
  • Start date

M

matteo.trombetti

Hello,

I am an employee working for a UK Company. My Company from time to time
sends some of its employees across the world as site representative but
they do receive their income in the UK only.

Now I am in this situation and I've been sent to Norway for a period
ranging probably from 2 wks to 1 mth and I've been asked to pay income
Tax in Norway.

I don't like this at all given the high taxation rate in Norway and I
don't feel that it's fair anyways, because I'm an UK employee under any
respect.

Do you think I am liable for paying taxes in Norway for this month?

Thank you in advance for any suggestions!

Matteo
 
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T

tim \(moved to sweden\)

Hello,

I am an employee working for a UK Company. My Company from time to time
sends some of its employees across the world as site representative but
they do receive their income in the UK only.

Now I am in this situation and I've been sent to Norway for a period
ranging probably from 2 wks to 1 mth and I've been asked to pay income
Tax in Norway.

I don't like this at all given the high taxation rate in Norway and I
don't feel that it's fair anyways, because I'm an UK employee under any
respect.

Do you think I am liable for paying taxes in Norway for this month?
If the Norwegian taxation system allows this, then yes.

It is theoretically possible for someone going the other way
to be liable to UK tax. The test in the UK is if the work
being done (in the UK) is their normal job that they do at
home.

Double taxation doesn't mean that you don't have to pay
tax in another country, it means that you deduct the tax
already paid in the first before paying the Tax due in the
second. With this method you end up paying an amount
of tax which is equal to whichever country charges the most.

Of course, someone coming this way won't actually
have to pay any more, all that happens is that HMRC get
some money that would have gone to the Norwegian
revenue.

It is usual in the circumstances you describe (moving
very temporarily to a high tax county) for the company
to indemnify you from the foreign tax, but obviously
your company is not this generous.

It is also common for countries not to bother collecting
the piddly difference in tax that will accrue from a two
week stay of an averagely paid employee. Perhaps
the Norwegians decide otherwise. The UK certainly
assess a tax bill on some Very High Earning foreign
visitors and have a whole department specially for this.

tim
 
T

T S Skogvold

Hello,

I am an employee working for a UK Company. My Company from time to time
sends some of its employees across the world as site representative but
they do receive their income in the UK only.

Now I am in this situation and I've been sent to Norway for a period
ranging probably from 2 wks to 1 mth and I've been asked to pay income
Tax in Norway.

I don't like this at all given the high taxation rate in Norway and I
don't feel that it's fair anyways, because I'm an UK employee under any
respect.

Do you think I am liable for paying taxes in Norway for this month?
Probably. If you are such inclined, you can have a look at the
Norwegian tax law at <URL:
http://www.lovdata.no/cgi-wift/wiftldrens?/usr/www/lovdata/all/hl-19990326-014.html>,
in particular this section <URL:
http://www.lovdata.no/all/tl-19990326-014-004.html#2-3> that pretty
much states that you are liable for most incomes originating in
Norway, no matter what. From the way I read the text (I am not a
solicitor) your situation seems clear - you are liable for tax to
Norway from your income.

The Norwegian equivalent of the Inland Revenue (Skatteetaten) has some
information in English on their website. See for example <URL:
http://www.skatteetaten.no/Templates/Brosjyre.aspx?id=28978&chapter=28980#kapitteltekst>.

See also <URL:
http://www.skatteetaten.no/Templates/Emne.aspx?id=7429>.

Being a Norwegian national working in Norway I have previously had
good help from the Central Office Foreign Tax Affairs who would deal
with your case. They can be contacted on +47 51 96 96 00 or
(e-mail address removed), and should be able to tell you what you
should expect...
 
A

axel

I am an employee working for a UK Company. My Company from time to time
sends some of its employees across the world as site representative but
they do receive their income in the UK only.
Now I am in this situation and I've been sent to Norway for a period
ranging probably from 2 wks to 1 mth and I've been asked to pay income
Tax in Norway.
I don't like this at all given the high taxation rate in Norway and I
don't feel that it's fair anyways, because I'm an UK employee under any
respect.
Do you think I am liable for paying taxes in Norway for this month?
Possibly. That would depend on Norwegian tax laws.

The question I would ask is how you managed to bring yourself
to the attention of the Norwegian tax authorities.

I suspect that it might be social security (a tax under a different
name) which might hit you hardest.
Thank you in advance for any suggestions!
At the end of the Norwegian tax year make a claim for
a refund if you only worked there for a month.

Axel
 
S

s_pickle2001

tim said:
Double taxation doesn't mean that you don't have to pay
tax in another country, it means that you deduct the tax
already paid in the first before paying the Tax due in the
second. With this method you end up paying an amount
of tax which is equal to whichever country charges the most.
No. You get credit for foreign taxes automatically in most civilized
countries. Double taxation treaties determine what kind of income is
taxable where, so that each piece of income is taxed in only one
country.
 
M

Mac

Hello,

I am an employee working for a UK Company. My Company from time to time
sends some of its employees across the world as site representative but
they do receive their income in the UK only.

Now I am in this situation and I've been sent to Norway for a period
ranging probably from 2 wks to 1 mth and I've been asked to pay income
Tax in Norway.

I don't like this at all given the high taxation rate in Norway and I
don't feel that it's fair anyways, because I'm an UK employee under any
respect.

Do you think I am liable for paying taxes in Norway for this month?

Thank you in advance for any suggestions!

Matteo
I've been working in Norway on a month on month off basis for the past
seven years - working offshore for a UK survey company, I can assure
you that the Norwegian tax department take no prisoners!

You will have to pay Norwegian tax - not only that, if you return to
the same site, they will consider you a "commuter" and tax all your
travel expenses irrespective of whether your company provides you with
air tickets etc.... this tax only applies to folk living outside Norway
- residents don't have to pay.

Cheers

Mac
 
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T

tim \(moved to sweden\)

I've been working in Norway on a month on month off basis for the past
seven years - working offshore for a UK survey company, I can assure
you that the Norwegian tax department take no prisoners!

You will have to pay Norwegian tax - not only that, if you return to
the same site, they will consider you a "commuter" and tax all your
travel expenses irrespective of whether your company provides you with
air tickets etc....
I'm not sure that I understand this.
I don't see how you can be taxed on remuneration not received.
No, I'm not suggesting that the tickets are not remuneration.
I'm suggesting that what you have written above includes the case:
"even if your company don't provide you with these expenses"
is that really what you meant?

tim
 

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