midget1500

hi all

if you go to another country, i.e. norway and work there for less than 6 months in a calendar year do you need to pay tax on your earnings to their government?

cheers
steven

Brit_in_Japan

Depends on several factors. I recommend you look at the guides on the Inland Revenue website, but there are a few to wade through

There are issues like where will you receive payment ? If you receive payment in Norway for working in Norway, the Inland Revenue will not be interested in it (at least that's what they told me about working out here).

If you receive payment in the UK for the work, then it might be paid gross, or it might be paid to you net of Norweigen tax, deducted at source. Income received in the UK is liable to tax by the IR (dependent on you tax residency status). If you are only working abroad for 6 months, you will be treated as resident for tax purposes. But the IR does have tax agreements with many other countries so you won't get taxed twice, you will end up paying what you would have paid in the UK. More paperwork to fill in when you submit your income tax returns though.

stevencotton

I've lived and worked in Norway. Upon arrival you'll go to a police station and be registered, usually with a letter from your company (I went to Groenland police station in Oslo). Then you'll be paying lots of local taxes, I think I was on their version of emergency tax until it could be set up properly (I don't know all about Norwegian tax law). I got a rebate about a year later of 900 pounds, and I'd only worked there a month!

God reise

midget1500

hi guys

this isn't me, just looking for advice for someone else. basically he's worked in norway for short periods over the last few years (i.e. upto a few months, but home every other weekend etc). never worked more than 3 months there in a year. he's over there now working for only 3 weeks and has been told this time by the company accountants that they are informing the local IR people and will have to sign some forms and pay tax at their rate (50% v. our 40%).

he is in a partnership in a uk based company and most work is in the uk, just doing this contract work for another company. doesn't understand what is happening now.

cheers
steven

CharlesW

Hi. I have worked on the Norwegian continental shelf for a number of years. Previously I was on a UK contract and paid in the UK. I am still resident in the UK. I work offshore on a 2 and 3 rotation. Then as Brit in Japan says I was liable for UK tax. Norwegian tax was deducted at source and this was taken into account by the Inland Revenue under a reciprocal agreement.
Since Jan 2003 I have been on a Norwegian contract pald in Norway, and the Inland Revenue are not interested. However you will still have to declare it on your tax return, but it will not count towards income taxable in the UK.
My experience is that the level of taxation is roughly comparable. Agreed the top level of taxation is 50%, but this does include National Insurance. In the UK the top level of tax is 40% + 11% National Insurance. Anyway the rate is on a sliding scale, so overall I pay just over 30% tax to Norway. And the Norwegian salary is much better.
So yes you will have to pay tax to Norway for the periods you work in Norway, but it really is not a problem.

IanWatson

The way I understand it is that if there's dual taxation treaty with Norway and you're being paid in Norway you will pay tax in Norway.
If you're non-resident in UK for less than one complete tax year, when you return to the UK you must declare your foreign earnings - as UK domiciled tax payers must declare ALL income world-wide. The Norwegian tax is refunded and UK income tax is applied.
If you stay away from UK for longer than one tax year, you do not have to pay UK tax on the foreign earnings, as you became non-resident in UK.

When I lived in Holland (3 years) I paid Dutch tax with a 35% reduction for expatriate workers and continued to pay UK NI.


Edited to say if there isn't a dual-tax treaty and you return before the end of a complete tax period you could be liable for income tax twice - here and abroad.