Information about tax deduction - Iaeste

Tax residence
If you stay so long in Norway that your stay is not temporary
according to the above rules, you will be liable to tax in
Norway on all your capital and income pursuant to Norwegian
tax rules. You are then “tax resident” in Norway. You first
become tax resident in Norway from the income year in
which your stay exceeds 183 days. If, for example, you came
to Norway in October 2007 and stay here until June 2008,
you will be treated as having “limited tax liability” for 2007
and as “tax resident” for 2008.
Tax liability to both Norway and your home country
You may also have to pay tax in your home country on
income on which you must pay tax in Norway. In order to
avoid double taxation of the same income and capital,
countries enter into tax treaties with each other. Information
about whether there is a tax treaty between Norway and
your home country and its significance to your liability to
pay tax in Norway is available from the tax office. Your home
country’s tax authorities can also provide you with information
about such tax treaties.
If you are “tax resident” in Norway pursuant to both
Norwegian tax rules and the tax treaty, you will in principle
pay tax in Norway on all the capital and income you have.
If you are “tax resident” in Norway pursuant to the Norwegian
tax rules, but “tax resident” in your home country pursuant
to the tax treaty, you will be liable to tax in Norway on pay
from your Norwegian employer for work performed in Norway.
Are you an employee or self-employed/engaged
in business?
It is very important in terms of your rights and obligations
in Norway whether you are regarded as an employee or as
self-employed/ engaged in business. If you receive a fixed
wage or pay calculated on the basis of the work you perform,
you are deemed to be an employee. If you have independent
responsibility for the result of the work and your client can
claim compensation for defects in the work, you are selfemployed/
engaged in business.
The tax office will consider whether you are an employee or
self-employed/ engaged in business. If you believe that you
are self-employed, you must read the “Miniguide for foreign
companies, self-employed and employees” which is available
from www.skatteetaten.no
In the vast majority of cases, it is easy to decide whether
you are an employee or self-employed/engaged in business.
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