Net salary arrangement, calculated tax for work performed in Norway
Concerns calculated tax for employees with a net salary arrangement.
Brief information concerning calculated tax
Specify calculated tax for employees with a net salary arrangement.
Calculated tax is the difference between the gross up basis and the grossed up amount.
Important information
A net salary arrangement is when:
- an employee has entered into an agreement with an employer concerning fixed net paid salary and other benefits, and/or
- the employer has undertaken to pay, in full or in part, the employee's tax and national insurance contributions
You must report all salary and other benefits covered by the net salary
agreement with the tax- and contribution rule “net salary”
The information you must provide
| Amount | NOK x |
| Type of income | Cash benefit, calculated tax |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax- and contribution rule | Net salary or Net salary for seafarers |
Additional information: |
|
| Table number | Gross up table number |
Amount
Specify the difference between the grossed up amount and the gross up basis.
How to calculate the difference:
| Grossed up amount (total gross allowance) Total net benefits paid, foreign tax paid* and calculated tax |
|
| - | Basis for grossing up Total cash benefits, payments in kind subject to withholding tax, expense allowances subject to withholding tax and foreign tax paid* |
| = | Difference |
(*) When foreign tax paid is included in the gross up
See also the overview of gross up tables
Type of salary or benefit
Specify “cash benefit” and “calculated tax”.
Subject to withholding tax
The benefit must always be specified as subject to withholding tax.
You do not deduct withholding tax if the amount to be deducted is less than the minimum thresholds for withholding tax.
Basis for employer's national insurance contributions
You must calculate employer’s national insurance contributions on this benefit.
Exceptions:
You can only omit to calculate national insurance contributions when the income recipient is not a member of the Norwegian National Insurance Scheme. This applies, for example, when the income recipient:
- is comprised by the national insurance legislation of another country according to a social convention or the EEA Agreement
- is a foreign employee who is not a member of the Norwegian National Insurance Scheme and who works on the Norwegian continental shelf or in Norwegian territorial waters
In some cases, the employee has a confirmation of a membership that is being maintained by their national insurance authority (A1 or another form). The Labour and Welfare Administration’s division for membership and contributions to the Norwegian National Insurance Scheme, NAV Medlemskap og avgift, will consider all documentation, register any exceptions from membership in the National Insurance Scheme and the relevant periods of exception, as well as whether the exception applies to all or parts of the National Insurance Scheme.
Registered exceptions from membership in the Norwegian National Insurance Scheme are sendt electronically from NAV to the Tax Administration.
Only exceptions registered with the Tax Administration will allow the employer to omit calculation of employer's national insurance contributions for an employee.
The Tax Administration may assess employer's national insurance contributions if there is no exception registered for the employee, and if the reported salary or benefit is not included in the taxable basis.
Tax- and contribution rule
Specify the relevant tax- and contribution rule:
This tax and contribution rule concerns:
- income recipients who are covered by a net salary agreement
The employer will then cover the tax due on the agreed salary or benefit, which means that the total net benefits will have to be grossed up in order to determine the correct gross income.
If the income recipient fulfils the relevant conditions, you must specify "net salary" for salary and other benefits.
This tax and contribution rule concerns seafarers who:
- are subject to a net salary agreement, and
- who are entitled to the special allowance (seafarers' allowance) from salary and other benefits earned through work on-board vessels in service.
If the income recipient fulfils the relevant conditions, you must specify “net salary and special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
Additional information
- Table number
Specify the gross- up table number (specify 0000 for foreign employees who are part of PAYE scheme for foreign workers)
Earnings period (voluntary)
You can specify the earnings period for all types of salary and other benefits in the a-melding. Both the start date and the end date of the earnings period must fall within the same reporting month.
See also the explanatory information concerning the earnings period
When you must submit reports
Specify calculated tax in the calendar month in which you paid the net salary and other benefits
Correcting errors
| MAGNET_EDAG-114 Invalid value |
| MAGNET_EDAG-114B Invalid value for this calendar month |
| MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
| MAGNET_EDAG-230B Invalid value |
| MAGNET_EDAG-243 Information on earnings period is invalid |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
NAV uses information concerning calculated tax to calculate unemployment benefit, and to check benefits such as sickness benefit, parental benefit, disability benefit, and advance payments of child maintenance.
The Norwegian Tax Administration uses information concerning calculated tax to pre-enter the tax return, and for control purposes.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
