Construction and assembly projects - Consultant guideline
A large number of our clients are coming to Norway for a construction or assembly project. We therefore know the requirements that companies in Norway are confronted with.
One important aspect is to distinguish between a service or construction contract and hire of personnel. Another is to evaluate taxability in Norway, for both employees and the company - therefore it is for example quite important to check whether there it is carrying out a (responsible) order - or staff rental.
A Norwegian corporate tax return must be submitted in any case. This also applies if the company's income – generated in Norway – is not taxable to Norway.
Permanent establishment for construction & assembly projects
In many - but not all - tax treaties there is agreed a 12-month period. This means, that a construction or assembly project is considered as a permanent establishment in Norway if it lasts longer than 12 months. When applying the set of rules, Norway basically follows the explanations of the OECD model commentary on Art. 5 (3). Any project in Norway should be considered separately in the light of the tax treaty. An individual evaluation of the tax position at project start is recommended.
Our services
- Start-up evaluations
- Identification of adequate company legal form
- Evaluation of tax position and risks
- Preparation of annual accounts
- Payroll services
- VAT compliance and filings
- Tax returns
- Preparation of annual accounts
- Application of HSE cards
- Other required administrative works
