Sending Oil and Gas workers to Norway?
Prepping workers for a contract in Norway and other parts of Europe can be tricky so here are a few pointers to help! Before the tips, here’s the low down on Norway. The country discovered oil and gas in close by waters and has extensive reserves of petroleum and natural gas making this an attractive place of work for professionals. It holds the top spot for the world’s largest producer of oil and gas outside of the middle east! Norway has always been a shipping nation and has one of the largest fleets in the world. Its hydroelectric plants generate about 99% of its electric power, which is more than any other country in the world…!
Now you can see why the country is so rich in resources and attracts specialist workers from all over the globe to work there. So what is needed to work there?
If a worker is a citizen of an EU, EEA or EFTA country then they don’t require a residence permit to live in Norway, but they will have to register themselves. If planning to work more than three months, registration must be carried out with the guidance of the Norwegian police. Workers must have a basis for residency and will need to prove that that will not be a burden to the public welfare service. If they are not an EEA national the worker should apply for a residency card. Residency cards are free of charge and are indefinite so no need to renew later on. After five years EEA nationals can apply for a permanent right of residence and if not an EEA national they can apply after three years providing they have completed tuition in the Norwegian language.
EEA nationals do not need a work permit to be employed in Norway. Skilled workers not from the EEA who wish to come to Norway before they have been granted a residence permit can apply for an entry visa. They should have a concrete offer of employment from an employer in Norway in order to do so. Whilst the entry visa does not allow the worker to work in Norway it does allow them to stay whilst the residence application is being processed.
Getting to grips with the taxation system in a different country can be very daunting and Norway is certainly no exception with quite a complex taxation system but do not worry Futurelink are experts on working abroad and here to assist.
Norwegian tax on ordinary income is 22% although for contract workers in the areas of Finnmark and Nord-Troms this is 18.5%. If the contract duration exceeds over 183 days in Norway the worker is then classed as a resident and they will have to pay tax on their worldwide income. If they do not reside in Norway for more than 183 days then they are not considered a tax resident and only have to pay tax on income earned in Norway. Before starting work in Norway the worker must apply to the local tax office for a tax deduction card and this will be given to the employer.
It’s always good for workers to be well prepared to ensure that they are abiding with the legislation rules. To speed up the process, workers may be asked to submit an A1/E101 form (if they are self-employed) to their national insurance department in their home country. If this is not done the worker will need to pay a contribution of 8.2% of their salary if they are an employee and 11.4% if they are self-employed. Usually, as an Employer, companies will pay 14.1% Contribution.
If the worker becomes a resident in Norway then they’re immediately entitled to healthcare benefits, there is no qualifying period, this includes free maternity services and hospital care. Employed and self-employed are compulsorily insured for sickness cash benefits.
Paying Workers Overseas
Here at Futurelink, we can pay workers in a number of currencies including Euros, Dollars and Pounds, which reduces the likelihood of bank charges as well as conversion to a second currency. Most contract workers going overseas favour our Gross Payment Solution. It means they are not taxed at source and avoid paying too much tax. Typically, workers pay tax in the country they are deemed resident in.
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