Foreign labor
The main rule in Norway is that companies and businesses that provide labor are liable to pay tax in Norway on this income.
If Norway has entered into a tax treaty with the country in which the company/entrepreneur is resident, there is normally no tax liability in Norway. However, the situation is different if the rental business has a permanent establishment in Norway.
The Norwegian Tax Administration determines whether assignments from foreign contractors are considered as hiring out of labor.
The following is decisive in the assessment of whether it is a hiring out of labor:
- The client decides the tasks
- The client has the responsibility
- The client is responsible for the workplace
- An hourly rate has been set for the assignment
- The client owns the materials and tools used
