Contractor working in Norway
Welcome to Cool Company, as an independent contractor working in Norway.
Cool Company provide an Employed Umbrella payroll solution in Norway, and we support contractors by processing payments, deducting taxes, and submitting these to the Norwegian Tax Administration.
Salary Calculator (in NOK)
Hva du får
11 148 NOK
11 148 NOK
Skatter, avgifter & pensjon
4 148 NOK
Cool Companys avgift 5,98%
1 196 NOK
- Ensure that you are entitled to work in Norway.
- Apply for a tax card document and submit this to Cool Company.
- Apply for a Norwegian Identity Number through the Norwegian Taxation Administration. Submit this to Cool Company.
- Register yourself in Norway.
Below you will find some information regarding being a contractor in Norway.
1. Ensure you are allowed to work in Norway
Note: All EU/EEA nationals are allowed to work in Norway
Firstly, to work legally in Norway, you will need a valid work permit. The process of obtaining a work permit can vary depending on your nationality and the type of work you will be doing. We recommend that you visit the Norwegian Migration Agency’s website for more information on how to apply for a work permit.
2. Apply for a tax deduction card and Norwegian identification number
Everyone who works in Norway must have a Norwegian identification number (D-number or national identity number) and tax deduction card.
The tax deduction card shows your employer how much tax to deduct from your salary. If you do not have a tax deduction card, your employer must deduct at least 50 percent of your income. Please note that Cool Company does not apply for the tax deduction card on your behalf. You’ll find the application here
If you don’t have a Norwegian Identity Number or D-number, then you will need to obtain one. In Norway, we use identification numbers to identify inhabitants. Many public and private sector organizations require you to have a Norwegian identification number for you to gain access to their services. There are two different types of identity numbers: a D-number and a national identity number.
Please note that salaries cannot be processed until you have obtained a Norwegian identity number or D-Number. When you apply for a tax deduction card, the Tax Administration may issue a Norwegian identification number for you. You can see whether they do it or not during the application process, and/or when you speak to the Norwegian tax administration.You’ll find more information about Norwegian identification numbers here
3. Register yourself in Norway
You must register no later than three months after your arrival in Norway, but this may vary depending on your nationality. As your employer during the assignment, we highly encourage you to do this upon arrival.
Please find the guidelines for your specific country here
4. General information about Norwegian taxation
If you live in another country and work in Norway, you are subject to regular taxation in Norway for income from work. This means employer’s National Insurance contributions, mandatory pension (OTP), and regular income tax. Regular income tax in Norway is on an average rate of 30%. Cool Company Norge AS cannot be used for you to avoid paying taxes. It is important that you apply for a tax deduction card, as mentioned in the section above, as the Norwegian tax rule states that your employer must deduct at least 50 percent of your income if no application has been sent it.
While we are happy to provide general information about working and living in Norway, we regret to inform you that we are unable to offer specific taxation advice. This is due to regulatory rules that prohibit us from providing such advice without proper licensing and authorization.
As a foreign worker in Norway, you can choose between two different ways of paying taxes. You must yourself check which way is most profitable for you.
PAYE scheme when you pay tax. Under this scheme, you are taxed at a fixed percentage that your employer deducts from your salary. If you do not wish to pay tax according to the PAYE scheme, you can opt out of the scheme and instead pay tax according to general rules. You cannot rejoin the scheme in that same year.
Under the PAYE scheme, the tax rate is fixed currently at 25% but you are unable to claim any deductions. Read more here
General tax in Norway is calculated according to a tax rate that varies based on how much you earn during the year. If you pay tax according to the general rules, you’ll receive a tax return in March/April of the year after the income year. The tax return is an overview of, among other things, your income.
If you’re an online user, you’ll receive your tax return online. You’ll be notified via text message or e-mail when it’s available. If you’re not an online user, you’ll receive the tax return by post. To make sure you do not pay too much, or too little tax, you must check that the information in the tax return is correct and submit the tax return to the Norwegian tax administration.
Social security is currently 14.1% of your income, which is mandatory to pay for when working in Norway. You can pay for social security in your home country with an A1 form, which is applied for in your home country, and unfortunately not something that Cool Company can assist you with.
Once you have received this application back, submit the document to email@example.com
OTP – Mandatory occupational pension scheme is a pension scheme for your employees. As an employer, you’re required to pay an amount corresponding to at least two percent of the employees’ salaries for their pension.
5. Billing & Time reporting
If your client requires an invoice from your umbrella company, these are created inside our online platform. Details of your client invoice requirements should be provided in the agreement you have with them along with the payment frequency or payment terms.
If your client or agency operates a self-billing process, please send remittances or timesheets to firstname.lastname@example.org.
Cool Company account
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