Tax advice needed on overseas employment

firebird1

Hello all you wizards,

When woking in Norway, do you pay Noggie tax or UK tax?

Jonbvn

I know numerous people who have worked in Norway in O&G and they have always had to pay Norwegian tax, which as you say is very high.

More info from the website. http://www.skatteetaten.no/Templates/Brosjyre.aspx?id=57467&epslanguage=NO

The key would seem to be whether you can claim you are employed or self employed.
http://www.skatteetaten.no/upload/Miniguide/Miniguide-engelsk.pdf

firebird1

Hi, I can see that.

But I am working for a UK company, and have done for many years.
and my wages are paid into my normal UK bank account, as normal with all tax and NI deducted, surly I dont pay norway tax as well. ?
Its just that for a few months I am here in Norway in an office block, instead of my normal office block in UK

Cook_County

I take it you are domiciled in South Africa.

You could however only benefit from the remittance basis by paying £30,000 a year.

A more logical answer would be to suffer Norway tax and break UK residence by being absent from the UK in full-time employment for a period including a complete UK tax year.

Your presence in Noray may form a permanent establishment of the UK entity for Norwegian corporate purposes and/or expose you to Norwegian payroll taxes.

You need to take advice locally.

simpywimpy

you could always use an umbrella company offshore such as commercial consultancy services in guernsey. Then decide later which is the cheaper tax option for you.

Cook_County

simpywimpy wrote: »

you could always use an umbrella company offshore such as commercial consultancy services in guernsey. Then decide later which is the cheaper tax option for you.

You could - but only if this was legal in Norway and didn't create a PE of that entity in Norway and increase your social security and payroll costs...

obsessed_saver

Cook_County wrote: »

A more logical answer would be to suffer Norway tax and break UK residence by being absent from the UK in full-time employment for a period including a complete UK tax year.

Slightly off topic, so when you break the UK residence by being away for the whole tax-year - let's say I left the UK March 31st 2008. Would I still be liable to pay tax in the UK in the 2008/09 tax year? Even though I'm no longer in the country?

Cook_County

obsessed_saver wrote: »

Slightly off topic, so when you break the UK residence by being away for the whole tax-year - let's say I left the UK March 31st 2008. Would I still be liable to pay tax in the UK in the 2008/09 tax year? Even though I'm no longer in the country?

It depends.

Firstly, you have to settle somewhere else - which may well tax you - then; secondly if you have met that first test you'd still pay UK tax on UK source income but you'd only escape UK tax on gains if you remain absent for 5 UK tax years.

Almost_Redundant

I think if i was in your situation, i'd employ the services of a tax advisor.