Foreign companies with business activities in Norway will often need to relocate employees to work on local projects. In these global mobility processes, many companies are surprised by the complexity of the regulatory landscape, and the potential pitfalls that may delay or even jeopardize the assignment.
This checklist gives you an overview of the key steps a foreign company must take for employee secondment to Norway, helping you navigate the requirements efficiently and avoid unnecessary obstacles.
11-step checklist for employee secondment to Norway
1. Registration of company
Companies that send workers to work in Norway must register in Norway. Please note that if any of the workers operate through their own companies, each of these companies must be registered in Norway. At this stage, it is extremely important to register the correct company and the correct contact person / business manager to reduce the risk of delays.
Also read: How to establish a Norwegian brand of a foreign company (NUF)
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2. Visa and residence permit
Is there a requirement for a residence permit, entry visa, registration with the immigration authorities, or can an exemption be used? It is important to check which requirements apply to each individual employee before relocating employees to Norway.
Also read: Do you need a visa to work in Norway
3. Employment contracts
Check that the workers have employment contracts that comply with Norwegian labor law, including provisions on minimum wage and working hours. If necessary, prepare a separate contract for the work in Norway or addendums to the existing employment contracts.
Also read: Employment contracts, what do you need to include?
4. Reporting workers and contract
Report workers and the contract of assignment to the Norwegian tax authorities, preferably directly in the Assignment and Employee Register. Alternatively, submit form RF-1198 / RF-1199.
Also read: RF-1198 and RF-1199 reporting for foreign business in Norway
5. Apply for A1 certificate in the home country
If the workers are covered by social security in their home country and are to be exempt from social security contributions in Norway, an A1 certificate covering the entire stay in Norway must be applied for in the home country.
Also read: A1 form—national insurance when working abroad
6. ID check for workers
Workers need to meet at a Norwegian tax office to verify their identity and obtain a D-number / tax deduction card. As soon as they arrive in Norway. Failure to do so could cause issues related to payroll withholding tax, or in some cases HSE cards.
Also read: ID checks for foreign employees in Norway
7. HSE - cards
Workers engaged in construction, assembly, or installation projects, may need an HSE cards (ID cards) before starting work in Norway. Depending on the type of project this step is extremely important and should be addressed as early as possible. Missing HSE cards may, in some cases, jeopardize the progress of the project in Norway.
Also read: What is an HSE card
8. VAT Obligations
Before starting work or sending goods to Norway, assess the company's VAT liability in Norway. At this stage foreign companies should also check if they can and should include VAT on outgoing invoices. Determine the need for a VAT representative, evaluate if pre-registration in the Norwegian VAT Register is necessary, and confirm the application of the 'reversed charge' mechanism for relevant contracts.
Also read: Claiming VAT deduction in Norway through pre-registration
9. Tax (Company and Employee)
Assess the foreign company's corporate tax liability (e.g., establishing a permanent establishment) and the employees' individual tax liability in Norway. Determine whether the workers should be in the Norwegian PAYE Scheme, or whether to apply for an exemption from payroll withholding tax. For companies and employees from other Nordic countries, consider applying for an NT1 certificate in the home country.
10. A-melding (Monthly Reporting)
Ensure the monthly mandatory A-melding is submitted to the Norwegian Tax Administration. This report contains details on salary payments, other taxable benefits, and any taxes withheld for all employees working in Norway.
Also read: What is an A-report (A-melding)—essential for employers in Norway
11. Tax return
Ensure that both the company and the employees submit their annual Norwegian tax returns by specified deadlines if a tax return is required. Determine whether to apply from an exemption to submit a corporate tax return.
Also read: A brief guide to your Norwegian tax return
Employee secondment to Norway requires planning, ask for support in time
Failing to follow the rules and regulations set by the Norwegian authorities can lead to project delays and significant, unexpected costs. Because sending employees to Norway requires a thorough understanding of Norwegian compliance obligations, we recommend consulting legal counsel for guidance tailored to your specific situation before any employee secondment takes place.
With proper planning and the right support, you can reduce risks, avoid unnecessary expenses, and ensure a smooth assignment process.
NEED GUIDANCE ON SECONDING EMPLOYEES TO NORWAY?
Our experienced lawyers knows what it takes. Contact us today!
