There are upcoming changes to Norwegian company legislation that may impact foreign companies registered in Norway. The Norwegian “Foretaksregisterlov” (Company Register Act) regulates the registration and administration of businesses in Norway. This legislation ensures that companies are correctly registered and administered. It ensures that there is transparency and adherence to the necessary rules in the business sector.
Is your company registered with a Norwegian NUF?
For companies registered as NUF (Norwegian Foreign Company) there will be changes to the rules regarding company names. Previously, it was required that the foreign company name or an alternate name could be used in connection with the registration of the Norwegian NUF.
Starting July 1st., 2024, the requirements will be as follows:
- The designation “NUF” must be included in the registered name in Norway and placed at the end.
- The underlying company’s name (the juridical and foreign entity) must be part of the NUF’s name.
- It will no longer be possible to name a NUF with alternate or brand names that are not part of the legal company name.
The requirement for sole proprietorships to be registered in the Norwegian Foretaksregister (the Norwegian commercial registry) will be abolished.
The Extraordinary Employer’s Tax
The extraordinary employer’s tax, introduced in 2023, will be abolished on January 1st., 2025. This measure has been temporary. The aim is to increase tax revenues from companies with high salaries. The purpose has been to strengthen public finances.
The extraordinary employer tax rate is 5%. The rate is calculated on basis of the employee’s salary that exceeds NOK 750,000 per year per employee.
The standard Norwegian employer’s tax is 14.1%, making it 19.1% on salaries over NOK 750,000.
The Norwegian Withholding Tax Account (Skattetrækskonto)
The Ministry of Finance has initiated a proposal that withholding tax should be paid to Skatteetaten (the Norwegian Tax Administration). Without tax must then be paid simultaneously with salary payments. This means that the requirement for a withholding tax account will be abolished.
The Norwegian withholding tax account is a special and separate account. It is distinct from the company’s other accounts. The withholding tax account is reserved for the payment of taxes and employer contributions that the company withholds from the employees’ salaries. The purpose is to ensure that the funds withheld from the employees’ salaries are allocated and reserved for the state.
With the new proposal that withholding tax is paid directly to Skatteetaten in connection with salary payments, the requirement for a withholding tax account will be abolished.
