Yet another Contracting in Norway thread :o/

[Consult]

Hi Everyone,
Happy New Year to you all!

Long time lurker, first time poster.

There is a UK IT Consultancy that is working for a client in Norway. They have offered me a "six month SUBCONTRACTING contract" working four days a week in Norway (four days worse case, could be less). Mine is a one director UK Ltd Company.

From what I have read (1) there's no point using the UK Ltd in Norway, best to work as an employee of a Norwegian umbrella (2) my whole day rate will be subject to Norwegian taxes (so not the salary I pay myself from my UK Ltd but the full day rate, ouch).

My question is I have seen mention of doing things differently, paying less Tax or paying tax back in the UK and not Norway, if (1) you are subcontracting to a UK firm or (2) you are a two director UK Ltd Company. Does anyone know if there is any truth to these statements and can point to some documentation? When I say "seen mention" I mean statements in spurious threads, nothing more tangible.

I intend to seek independent advice from a Norwegian accountant but thought I would post here also.

Cheers Everyone

[simes]

IT Contracting in Norway: Money & Tax

While 10 years out of date, it may answer something.

I was looking at contracting in Amsterdam, but was always put off by the (comparative) excessive taxation. Thast said, an opportunity has arisen whereby if you are somehow linked to a UK base, invoicing via your LtdCo and subsequent taxation remains in country.

In this case, my Sub or intermediary contractor is UK based, hence the above. You might need to ask if this is possible in your scenario.

Best.

[Consult]

Simes thanks for the link and information.

That said, an opportunity has arisen whereby if you are somehow linked to a UK base, invoicing via your Ltd Co and subsequent taxation remains in country.

The only thing I could find in the link was in regards to Social Security and remaining in the UK NI scheme. My potential sub/intermediary is certainly a UK based consultancy.

[Sue B]

Hi there,

I would be happy to assist on a more technical level if you want to get in touch, however, the general advice for working in Norway is local tax (yes, unfortunately, on all your income, as it is treated as salary rather than dividends) but you may remain in the UK NI scheme with the application of an A1 Certificate.

It doesn't matter where any intermediary / subcontractors are based, basically tax liability is decided by "where do you live, and where do you work". UK and Norway. If the end client to whom you deliver your services has permanent establishment in Norway then the income is deemed to be Norwegian sourced and therefore taxable there first.

You will get a foreign tax credit in the UK but only to the value of your UK income tax liability. You cant mismatch income for tax relief purposes.

Hope this helps.