The Norwegian Tax Assessment Act is effective from 1 January 2017. In addition to some significant material changes regarding tax assessment, the legislation introduces a new compulsory fine for late filing or non-compliance. Many branches are now at risk of such fines.
Both resident and non-resident entities carrying on business in Norway are obliged to submit an annual income tax return (No: Skattemelding). The obligation applies even if the entity disputes its obligation to pay tax and also if the income is deemed not to be taxable to Norway pursuant to an applicable tax treaty.
An entity with taxable turnover on goods and services in Norway exceeding 50 000 NOK in a period of 12 months is liable to register in the Norwegian VAT register. All subjects registered must file a VAT return form six times annually (No: MVA-meldingen).
If an entity has employees in Norway, the employer must be registered in the Employers and Employees register. Information about employees and payroll must be submitted through a scheme each month (No: A-meldingen). Other reporting requirements may apply to foreign employees working on contracts carried out in Norway (and on the Norwegian Continental Shelf).
All forms should be filed through Altinn (a Norwegian electronic filing system). If the entity does not comply with the obligations above, the Tax Authorities may impose a compulsory fine. There may also be other sanctions such as discretionally assessment of tax and/or VAT, penalty tax and interests.
The fine for non-compliance of the tax return or VAT return form, is NOK 524 each day, limited to NOK 52 450. Late filing of information on third party-obligations (e.g. A-meldingen) are NOK 1 049 each day, also limited to NOK 52 450. All amounts are annually adjusted.
Some important deadlines are:
- 6 March 2017: Filing of A-meldingen for the previous month (February). Generally, the deadline is on the 5th each month with adjustments to weekends and public holidays.
- 10 April 2017: Filing of MVA-meldingen for Term 1 in 2017 (January and February). The deadlines for other terms are: Term 2: 10 June, Term 3: 31 August, Term 4: 10 October, Term 5: 10 December, and Term 6: 10 February 2018.
- 31 May 2017: Filing of Skattemeldingen for companies, branches and other entities.