{"id":27,"date":"2024-12-05T17:01:35","date_gmt":"2024-12-05T17:01:35","guid":{"rendered":"https:\/\/acconor.com\/en-int\/?p=27"},"modified":"2025-04-28T16:00:44","modified_gmt":"2025-04-28T16:00:44","slug":"permanent-establishment-in-norway","status":"publish","type":"post","link":"https:\/\/acconor.com\/en\/permanent-establishment-in-norway\/","title":{"rendered":"Permanent Establishment in Norway"},"content":{"rendered":"\n

A permanent establishment (PE)<\/strong> for foreign companies arises when business activities are carried out through a fixed place of business<\/strong> in Norway, either fully or partially. In general, the activity must be conducted for a sufficient period of time<\/strong> to trigger a PE. In most cases, the existence of a PE leads to corporate tax liability<\/strong> in Norway.<\/p>\n\n\n\n

Examples of situations that may create a permanent establishment:<\/h4>\n\n\n\n
    \n
  • Presence of local management<\/li>\n\n\n\n
  • Establishment of an office<\/li>\n\n\n\n
  • Local production facilities or a factory<\/li>\n\n\n\n
  • Retail store or other physical sales outlet<\/li>\n\n\n\n
  • Participation in construction and\/or assembly projects lasting more than 12 months<\/strong><\/li>\n\n\n\n
  • Individuals (e.g. agents) acting on behalf of the company with authority to conclude contracts<\/strong><\/li>\n<\/ul>\n\n\n\n

    Exemptions and tax treaty considerations<\/h4>\n\n\n\n

    Under several bilateral tax treaties<\/strong>, certain auxiliary or preparatory activities<\/strong> may be exempt from creating a PE. These may include:<\/p>\n\n\n\n

      \n
    • Use of premises solely for storage, display, or delivery<\/strong> of goods<\/li>\n\n\n\n
    • Facilities used only to collect information or conduct preparatory market research<\/li>\n\n\n\n
    • Fixed places of business used solely for support functions<\/strong> that are not part of the core business operations<\/li>\n<\/ul>\n\n\n\n

      National law vs. tax treaties<\/h4>\n\n\n\n

      Whether or not a foreign company has a PE in Norway is assessed under both:<\/p>\n\n\n\n

        \n
      • Norwegian domestic tax law<\/strong>, and<\/li>\n\n\n\n
      • The relevant Double Taxation Agreement (DTA)<\/strong> between Norway and the company\u2019s home country<\/li>\n<\/ul>\n\n\n\n

        In some cases, a PE may be triggered under one set of rules but not the other. It’s therefore important to review both the local tax code and applicable treaty provisions<\/strong>.<\/p>\n\n\n\n

        Recommendation<\/h4>\n\n\n\n

        If your company is planning activities in Norway and is unsure whether these could create a permanent establishment, it is strongly recommended to:<\/p>\n\n\n\n

          \n
        • Seek professional tax advice<\/strong>, or<\/li>\n\n\n\n
        • Apply for a binding advance ruling<\/strong> from the Norwegian Tax Administration (Skatteetaten<\/em>)<\/li>\n<\/ul>\n\n\n\n

          This can help you avoid unexpected tax liabilities and ensure compliance from the outset.<\/p>\n","protected":false},"excerpt":{"rendered":"

          A permanent establishment (PE) for foreign companies arises when business activities are carried out through a fixed place of business in Norway, either fully or partially. In general, the activity must be conducted for a sufficient period of time to trigger a PE. In most cases, the existence of a PE leads to corporate tax […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-27","post","type-post","status-publish","format-standard","hentry","category-doing-business-in-norway"],"_links":{"self":[{"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/posts\/27","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/comments?post=27"}],"version-history":[{"count":2,"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/posts\/27\/revisions"}],"predecessor-version":[{"id":59,"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/posts\/27\/revisions\/59"}],"wp:attachment":[{"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/media?parent=27"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/categories?post=27"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/acconor.com\/en\/wp-json\/wp\/v2\/tags?post=27"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}