Pay As You Earn
(PAYE, Norw. kildeskatt) - 25%
PAYE is a payroll withholding tax scheme for foreign employees.
In 2019, a new tax scheme, PAYE (kildeskatt), was introduced for foreign employees in Norway.
It was primarily intended to apply to non-Norwegian employees who do not have tax residency in Norway, and to those members of the management boards of Norwegian companies who reside abroad and receive remuneration for holding their posts.
The basic principles of the new scheme are as follows:
– Fixed tax rate of 25% (including Norwegian National Insurance (NI), unless an employee proves, e.g., presenting an A1 form, that he is exempt from paying NI in Norway. If an employee is not a member of the Norwegian Social Security System, the tax rate is 16.8%).
– No need to file a tax return and wait for its result.
– No possibility to claim any relief or deductions.