ACCOUNTING SERVICES
Business success and expansion in Norway is often hampered by a lack of accounting and tax knowledge, which can lead to a loss of trust with partners, contracts, fines and even lawsuits against the Norwegian Tax Administration.
Our professional accounting services enable our clients to run their business in Norway without the headache of losing the trust of their partners and the time and money to deal with accounting problems.
We provide complete accounting services from the initial documents to the annual financial statements.
Audits
We help our clients choose an audit firm when an audit obligation arises. We suggest selecting audit companies with whom we have been working for years and have gained their trust: Deloitte AS, Ernst&Young AS, Nitschke AS, Plus Revisjon AS and other Norwegian auditors.
Financial accounting system
We use Visma, one of Norway’s most advanced and popular accounting systems, which allows us to:
- generate and export payroll and tax returns to the Altinn e-filing system,
- send and receive e-invoices,
- export payments to the bank,
- generate annual financial statements.
- Customers can access the data recorded in the accounting system for their own internal analyses,
- provide data to the authorities in electronic format.
Communication with authorities
We represent our clients’ companies on behalf of the clients and communicate with the Norwegian Tax Administrator, the Labour Inspectorate and other institutions on all issues related to the organisation of business activities, accounting and tax matters.
Recommendations
We will gladly share our clients’ contacts so you can ask them directly about their experience of working with us and the quality of our services.
When operating in Norway through an NUF branch, you need to have both Lithuanian and Norwegian accounting and tax knowledge. Companies in Norway often faced the challenge of correctly adapting and harmonising the labour, accounting and tax laws of both countries, identifying the country where they need to pay personal income tax, social contributions and corporate income tax.
Incorrect assessment of the circumstances and payment of taxes in the wrong country (e.g. Lithuania instead of Norway or vice versa) can lead to double taxation. The tax authorities in the other country may decide that the tax has been calculated and declared in the wrong country and demand payment, even though the tax has already been paid in another country (e.g. Lithuania). This is a common situation when companies’ accounts are kept by accountants who do not have accounting and tax knowledge of both countries – Lithuania and Norway – and who have no experience in keeping NUF’s accounts. We have all heard sad examples of Lithuanian companies that have successfully done business in Norway having to close down their operations after suffering reputational and financial damage due to inaccurate Norwegian accounting, declarations and taxes paid to the incorrectly identified country. Correcting several years of data in both Lithuanian and Norwegian accounts, filing new returns, paying additional taxes and recovering taxes already paid in the wrong country is time-consuming, resource-consuming, and reputational in the eyes of partners.
As accounting and tax specialists in both Lithuania and Norway, with higher financial education in both countries, we specialise in (NUF) accounting. Managing tax risk in business is one of the most complex tasks for which we have the necessary expertise, knowledge and experience.
We provide answers to complex questions posed by our clients:
- In which country, Lithuania or Norway, do VAT, personal income tax, social contributions, corporate income tax become payable?
- How to correctly assess the taxable and non-taxable income of projects in Norway?
- How to correctly transfer costs incurred by a company in Lithuania in relation to NUF activities in Norway to NUF accounting?
- How to calculate the correct corporate income tax in Lithuania and Norway on income earned in Norway?
- How to correctly declare NUF’s income, expenses and corporate income tax paid in Lithuanian and Norwegian tax returns?
- When and to whom is the tax liability on wages and Lithuanian per diems due?
- Are Lithuanian daily allowances also considered as daily allowances in Norway?
We work closely with specialists from our Accounting Department in Lithuania to:
- explain Norwegian accounting principles and the tax declaration and payment procedures,
- help harmonise Lithuanian and Norwegian labour law, accounting and tax legislation,
- assist in the correct declaration of income earned in Norway, expenses and taxes paid in Lithuania,
- prepare the necessary documentation for employment relations in Norway, employment register, safety and tax cards, etc.
Employee tax refunds
We assist our clients’ employees in filing their annual tax returns and recalculating their taxes after correct application of the annual tax-free income levels and the benefits due to foreign employees.
Audit
We assist our clients in the selection of an audit firm in the event of an audit obligation. We suggest selecting audit companies with whom we have been working for years and have gained their trust: Deloitte AS, Ernst&Young AS, Nitschke AS, Plus Revisjon AS and other Norwegian auditors.
Communication with authorities
We represent our clients’ companies on behalf of the clients and communicate with the Norwegian Tax Administrator, the Labour Inspectorate and other institutions on all issues related to the organisation of business activities, accounting and tax matters.
Other compulsory registers
In addition to accounting services, we help our clients to manage all their HR documents in Norway, contract register, HMS cards, tax cards, etc.
Recommendations
We will gladly share our clients’ contacts so you can ask them directly about their experience of working with us and the quality of our services.
- How to correctly identify the country – Lithuania or Norway – where the obligation to pay personal income tax and social contributions arises.
- How to correctly declare wages related to work in Norway in both Lithuania and Norway.
- We will apply for an exemption from Norwegian personal income tax on wages and salaries if the activities of the company and the nature of the employee’s work in Norway meet the criteria for being exempt from personal income tax.
- We will arrange the employees’ tax cards and annual income tax returns in the event of a liability to pay personal income tax in Norway.
- We will register the start and end of the employee’s employment in Norway and other necessary registers.
- We will order the HMS safety card, which is compulsory for all employees working on construction sites.
- You have not carried out any taxable activities in Norway in the last 12 months (no sales of goods/services in Norway).
- If you are a VAT payer in Lithuania or another country.
- The goods or services purchased from Norway were intended for the purpose of carrying out your business activities in Lithuania or another country.
- We explain to employees in plain language the Norwegian procedures for filing annual tax returns and calculating taxes, and what social security benefits apply to an employee whose salary is taxed in Norway.
- We check, correct and submit the correct annual income tax return.
- If the employee has been exempted from taxation in Norway, we provide this information and the necessary documentation in the annual income tax return.
- If the employee’s personal income tax was paid in Lithuania and taxed in Norway by the Norwegian Tax Administration at the end of the calendar year, we help the employee to recover the tax overpayment in Lithuania.
- If the employee’s wages were taxed in Norway, we help the employee to apply Norwegian tax credits and recover part of the income tax paid.
- We handle other personal documents and benefits of employees in Norway: tax card, child benefit, sickness benefit, maternity/paternity benefit, etc.
Having worked in the Norwegian market for more than 15 years, we have accumulated a wide range of experience in business organisation in Norway, in addition to accounting and tax knowledge. We have a deep understanding of the business environment and can assist our clients with other business-related issues in Norway:
- Occupational safety
- Business and staff insurance
- Staff recruitment
- Hiring employees
- Pensions
- Permits and licenses
- Norwegian banks
- Acquisition, transfer and disposal of assets
- Communication and submission of documents to authorities
- Contract issues,
- Managing debt recovery processes.
We are always by our client’s side in all day-to-day Norwegian business matters. We become part of the client’s team in finding the best solutions for the business.
We pay particular attention to companies new to the Norwegian market, seeking to understand their new business environment.
Communication with authorities
We represent our clients’ companies on behalf of the clients and communicate with the Norwegian Tax Administrator, the Labour Inspectorate and other institutions on all issues related to the organisation of business activities, accounting and tax matters.
Other compulsory registers
In addition to accounting services, we help our clients to manage all their HR documents in Norway, contract register, HMS cards, tax cards, etc.
Debt management
We advise on debt collection and management, and prepare the necessary documents for the process.
Assessment of the accounting process and tax liability
If you want a “second opinion” in assessing the accounting that you, your chartered accountant or another accounting firm keeps, we have the knowledge and experience to ask you key questions about the nature of your business, your accounting and your tax affairs, so that we can assess the quality of your company’s accounting.
Contact us and take the opportunity to get a second opinion or a solution offered by an external service provider.
