Norwegian Tax

[Guest guest]

Hi Guys,

I'm sending this email in reference to something I read about recently

on the list about working offshore Norway (as a UK resident) and tax

liability.

The UK tax man and the Norwegian office based in Sandnes Nr Stavanger

have reciprocal agreements regarding tax, which basically means that if

you work on the Norwegian Continental shelf, you are liable for

Norwegian tax instead of UK tax. If for example you are a day rater and

having worked in Norway but paid you tax to the UK office and later

receive a letter for Norway requesting your tax, I know of seafarers who

have had to claim back the tax for the UK and send it to Norway. (and

add

the extra as Norway have a higher rate of tax)

Some UK companies who pay their staff through offshore bank accounts

will tell their employees that they are not liable for Norwegian tax,

but this is not correct, they can say this as they are operating from

offshore accounts which does not make them liable for any tax. The

individual is

responsible for paying his own tax, especially when he is being paid

gross.

I'm bringing this subject to light because I personnaly know of a couple

of guys who have had legal action taken

against them in the UK from the Norwegian tax office over unpaid tax on

salary earned whilst working off the Norway. They

adopted the attitude of 'well, I'm in the UK and the Noggie tax man

can't touch me'. They are both now on a tax repayment scheme as their

tax bills ran into thousands of pounds.

Some companies will increase salaries of their employees, because of the

higher tax whilst working in Norway so that their net pay is the same as

working off the UK sector, but these are far and few between.

The clients/vessel owners are required to report names and addresses etc

of

personnel to the Norwegian tax office, so even if your employing agency

does not do this, the client/vessel owner will, so they will have your

details. This is where some personnel think that there is a hole in the

system, so they will get away with it. Be warned.

If anyone is unsure about this, you can contact the Norwegian office on:

Central Office Foreign Tax Affairs, P.O. Box 8031, N-4068 Stavanger,

NORWAY

Tel: +47 51 96 96 00

They all speak good English at this office and are very helpful.

If anyone has any queries, feel free to drop me a line.

Regards,

Stew.

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