Tax Bill from Norwegian Tax Authority

[BlasterBates]

OK thanks, so it seems one man band UK limited companies are not recognised.

Anyone had any success in negotiating with interests charges with the Norwegian govt.

I would contact a Norwegian accountant, at least they can confirm that you should be paying tax and secondly they might at least be able to get the bill down. Hopefully you have a contact in Norway who can make a recommendation and have some telephone conferences.

You also probably need the help of a UK accountant to make sure you're not taxed twice.

[TimTyler]

Don't pick the answer you want to hear. There is no tax error in this situation.

Would seem so.

[Lance]

Nope.

Tax rules in Norway, even if using a UK Ltd are complex. A search on here or Google will reveal that. You may have got lucky, but you may want to set aside some cash for an unexpected bill.

If this does happen you may be entitled to some tax back from HMRC. It's probably worth a check/call with HMRC to see what double-tax arrangements are in place.

[TheCyclingProgrammer]

If this does happen you may be entitled to some tax back from HMRC. It's probably worth a check/call with HMRC to see what double-tax arrangements are in place.

I do believe there is a treaty in place so if UK Ltd is liable to Norweigian corporation tax it should be able to offset the UK CT. But I'm no expert on these matters...OP definitely needs to speak to both a UK accountant who has experience in this area and ideally a Norwegian one too (or perhaps a UK accountant based in Norway).

[Lance]

This is just not true I'm afraid, there is no EU/EEA tax harmonisation, would you work in say Australia or Canada and assume you pay no tax there?

People get confused about the four freedoms meaning UK Ltd means UK tax anywhere in EU. It doesn't.

and Norway is not EU as I found out with a server in my luggage

[stek]

Tax Bill from Norwegian Tax Authority

and Norway is not EU as I found out with a server in my luggage

Yes but it is EFTA and adopts EU rules including the four freedoms much like the UK will do on Brexit.

[Sub]

I am a UK resident and in 2012 i worked in Norway for approx 30 days making about 100,000NOK.

Anyway the contract was between my UK limited company and the company i was contracted to in Norway.

The tax bill they have sent is addressed to me and after speaking to them they seem to totally ignore the UK limited company.

Is this correct and is there any way of showing to them that a UK limited company does not have to pay tax to the Norway.

Thanks

You haven't mentioned which tax they want to collect - is it income tax? If it is, means that you we've been treated as person working directly to your client (as employee). If you have agreement between two companies covering the deal and you can proof that money were paid into company account, you should be OK.

And there is no such thing as "one man band LTD", same rules are applied to all LTD regardless of number of employees/directors.

[TimTyler]

You haven't mentioned which tax they want to collect - is it income tax? If it is, means that you we've been treated as person working directly to your client (as employee). If you have agreement between two companies covering the deal and you can proof that money were paid into company account, you should be OK.

And there is no such thing as "one man band LTD", same rules are applied to all LTD regardless of number of employees/directors.

Yes it is income tax they are chasing me for. I have the contract that was an agreement between both companies. Obviously it has my signature on but in the role as director.

[stek]

You haven't mentioned which tax they want to collect - is it income tax? If it is, means that you we've been treated as person working directly to your client (as employee). If you have agreement between two companies covering the deal and you can proof that money were paid into company account, you should be OK.

And there is no such thing as "one man band LTD", same rules are applied to all LTD regardless of number of employees/directors.

WRT to last bit I think you'll find if the company has shifted its operations to another country it falls under that country's tax regime no matter how short the period.

So the OP may also find the NO tax man will want some corporation tax too.

[TimTyler]

WRT to last bit I think you'll find if the company has shifted its operations to another country it falls under that country's tax regime no matter how short the period.

So the OP may also find the NO tax man will want some corporation tax too.

In the 2013 treaty (can't find 2012) but i "presume" it wouldn't be remarkably different.
Company hasn't shifted its operations

https://www.gov.uk/government/upload...-_in_force.pdf

Article 4
Resident
1. For the purposes of this Convention, the term “resident of a Contracting State” means
any person who, under the laws of that State, is liable to tax therein by reason of his domicile,
residence, place of management, place of incorporation or any other criterion of a similar
nature, and also includes that State and any political subdivision or local authority thereof.
This term, however, does not include any person who is liable to tax in that State in respect
only of income or capital gains from sources in that State.

3. Where by reason of the provisions of paragraph 1 an individual is a resident of both
Contracting States, then his status shall be determined as follows:
a) he shall be deemed to be a resident only of the State in which he has a
permanent home available to him; if he has a permanent home available to him
in both States, he shall be deemed to be a resident only of the State with which
his personal and economic relations are closer (centre of vital interests);

Article 7
Business Profits
1. Profits of an enterprise of a Contracting State shall be taxable only in that State unless
the enterprise carries on business in the other Contracting State through a permanent
establishment situated therein. If the enterprise carries on business as aforesaid, the profits
that are attributable to the permanent establishment in accordance with the provisions of
paragraph 2 may be taxed in that other State.

As i never moved permanently to Norway they wouldn't be seeking a cut of corporation tax.