In this article, we walk through how payroll automation works in practice, what benefits it provides, and how big companies can take the step toward a more automated and efficient payroll process.

Why do you need to automate payroll processes?

Automating payroll means using software that automatically calculates, validates and pays out salaries based on data from time tracking, absence systems, work schedules and agreed rates. Instead of a payroll employee manually extracting data and entering numbers into the system, automation allows the process to run on its own.

There are many advantages. Here are the most important ones:

Less manual work and reduced time spent

Many hours every month are consumed by routine tasks. Automation frees up time by taking over:

• importing workhours
• calculation of supplements and variable pay
• calculation of tax and the employer’s national contributions
• generation of payslips

By reducing manual work, the payroll team can focus more on quality assurance and advisory tasks instead of pure data processing.

Fewer errors and higher data quality

Payroll errors are costly both financially and in terms of employee dissatisfaction and extra work. Many companies experience that even small typing errors can create major ripple effects.

Modern payroll systems such as Tripletex, have built-in control mechanisms that automatically detect deviations and warn users before payroll runs are completed. This results in more accurate payments and fewer corrections afterward.

Better compliance

Regulations are constantly changing, especially relating to:

• tax calculations
• rates for travel and subsistence
• working time regulations
• HSE requirements and reporting deadlines

With a modern payroll system, you don’t need to monitor every change yourself. The system updates automatically according to current laws and regulations. This reduces the risk of mistakes and ensures compliance in an increasingly complex landscape.

Integration with other systems

Automation works best when the payroll system communicates with other tools in the company. A good system can integrate with:

• time tracking
• workforce or shift planning
• HR systems
• accounting systems
• banks (for payments)

This ensures smooth data flow without errors and saves the company even more hours every month.

Examples of payroll automation

Example 1: Time tracking flowing directly into the payroll system

A construction company with 25 employees uses a digital time-clock system. The payroll manager previously spent a full working day checking and entering working hours. Now working hours are transferred automatically including evening work, weekend and overtime.

Time saved: 5-10 hours per month

Effect: far fewer mistakes and significantly less post-work.

Example 2: Automatic handling of absences

A retail company with many part-time employees often struggled with errors in vacation and absence reporting. After implementing a modern HR system integrated with their payroll system, all absences are now automatically synchronized and updated.

Result: correct holiday pay, correct absence-related salary and far fewer manual checks.

Example 3: Automatic reporting to the Norwegian Tax Administration

Altinn reporting, A-melding and employer’s national insurance contributions can be time-consuming when done manually. With automation for example via Tripletex the correct reports are automatically sent to Altinn.

Result: several work hours saved each month and a drastically reduced risk of misreporting.

What can be automated?

Here are some typical payroll processes and their automated solutions:

Contact us

Do you have any questions about how to get started with payroll automation? Or do you need help finding the right tools for your company? We are happy to assist with advisory services, assessments and practical recommendations that make the transition both smooth and profitable.

Contact us today and we’ll find the most efficient path to a smarter payroll process.

The post Automation in payroll: save time and avoid mistakes appeared first on Leinonen Norway.

A brief introduction to VAT in Norway

VAT stands for value added tax and is called MVA in Norwegian. It is a tax on the purchase, sale, withdrawal and import of goods and services. All rules that apply for this tax are regulated in the value added tax law. It applies to the rules for when companies need to register in the Value Added Tax Register, how VAT needs to be calculated, what can give you a deduction and what VAT rates we have in Norway.

To be registered in the Value Added Tax Register a company needs to exceed NOK 50 000 in turnover within a year. When a company is registered there, you can add the abbreviation “VAT” (MVA) after your organization number, start invoicing with VAT and report VAT return. The reporting usually needs to be done every second month, but some companies do it once a year.

Value added tax was introduced in Norway in 1970, but the current value added tax law came into force on 1st of January 2010.

VAT rates

The standard VAT rate is 25% and applies for most goods and services. In addition, there is a 15 % rate for foodstuffs and beverages and 12 % on passenger transport, accommodation, cinema tickets, sport events, museums, etc.

In some cases we do not calculate VAT, but we differentiate between exemptions and exceptions. It sounds almost similar, but there are actually important differences between these 2 terms.

When we say that certain services are exemptions from VAT, we mean that a company doesn’t need to do registration in the Value Added Tax Register. This applies to health services such as doctors, dentists, psychologists and cultural services such as theatre and ballet performances.

For exceptions from VAT, we mean that we do not calculate VAT on the turnover and the rate is 0%. So you don’t need to add VAT on the sales invoices, but you still need to register in the VAT register and can claim VAT deductions on your expenses. Examples of exemptions are sale of used cars and books.

Frequent mistakes regarding VAT calculation

It is easy to make mistakes when you do VAT calculation and reporting. We have a lot of experience in correcting various errors and here are some examples.

Many companies (especially recently established ones) create a sales invoice with VAT before they have exceeded NOK 50 000 in turnover. In this case we recommend crediting this invoice and sending a new invoice without VAT.

Another mistake that comes up is that a company invoice without VAT, when it should have included VAT. In this case, you can also credit the entire invoice and send a new one with VAT. Alternatively, you can send a new invoice with only VAT without crediting the old one.

Many mistakes happens also when companies claim VAT deductions for things, they are not able to require deductions for. For instance, when hosting customers, VAT can not be deducted from the food expenses.

Using of wrong rate for expenses also happens, for example 25% instead of 12 % for passenger transport.

Another source of error is the reporting of remotely deliverable services purchased from abroad. VAT needs to be calculated and reported according to the so-called reverse charge. Our employees have a lot of experience with this type of reporting and will be happy to assist in such cases.

There are also many companies which make mistakes when they invoice international clients. The basic rule is that sales to foreign customers must be without VAT, but this requires that service or product is used outside of Norway’s borders. This means that if the customer’s delivery address is in Norway, the invoice must include VAT even though it’s a foreign customer!

Misunderstandings regarding exemptions and exceptions from VAT

Earlier in the article we presented the difference between exemptions and exceptions from VAT. So for instance healthcare or teaching services don’t need a VAT registration. However, the challenge comes when a company also work additionally with another type of activity which is not exempt from VAT. This activity provides a basis for calculating, reporting and paying VAT for the part of the turnover which is not exempt from VAT.

When it comes to exceptions from VAT, the rule is that the turnover gets a 0%-rate (for instance when selling books), and the company must be registered in the VAT register. Many people misunderstand these 2 terms and think that exemption is the same as exception, but that is not true. A company has the right to claim deductions on purchases, even if all turnover is excepted from VAT.

In addition, it is important to say that a company may have some turnover with VAT, some is exempted and some is excepted from VAT. It can seem confusing to most people, so it’s good to ask for professional advice before doing anything wrong.

Consequences of late VAT submitting and payments

It costs dearly to be late with the submission of the VAT return. If you do not report in time, a daily fine of NOK 672,50 will start running and the maximum amount can be up to NOK 67 250 (for 2026). Based on our experience, it usually takes some time before Norwegian Tax Administration will react. In this letter it usually says that enforcement fines will start one week after receiving the notice.

Interest on overdue payments will also apply and is 12,5 %.

Changes in the correction of errors in VAT return

A new VAT return was introduced in 2022. This made the way errors were fixed different than before. For VAT terms until the end of 2021, you should send an additional VAT return or a new correction for that term. This was done manually on skatteetaten.no. The new VAT return can be sent directly from an accounting program. If you have made a mistake and want to correct it, from 2022 you can reopen the period, make the change and send the new VAT return for the same term. But it is still possible to register a transaction in a new period as well.

Our experience with incorrect VAT reporting

After many years of experience we have seen lots of different cases of incorrect VAT reporting. It is often an employee in the company who has tried to do the reporting and without having enough expertise in the VAT regulations, things often go wrong. For instance we have seen a case where turnover which was reported was significantly lower than previously. It has been noticed by the Norwegian Tax Administration and the company had to go through a VAT check. Documentation was needed to be sent to control whether the report was correct. When it was discovered that submission was wrong, the company had to pay quite a big fine.

Conclusion

To summarize we would like to say that the regulations regarding VAT are quite complicated. To avoid mistakes, it is best to contact a professional accountant. We are ready to submit your VAT return!

The post Common VAT Mistakes in Norway and How to Avoid Them appeared first on Leinonen Norway.

COMPANY ESTABLISHMENT

Before undertaking business activity in Norway, it is necessary to choose which type of legal entity to form. Depending on how many employees will be in the company, how much risk you are willing to take and what future plans are, certain legal entities will suit you better than other. Therefore, an investor should pay special attention when determining the appropriate corporate form since this will help to achieve goals that are set while meeting all legal requirements.

The most common legal entities in Norway are:

• sole proprietorship (ENK),
• Norwegian branch of a foreign company (NUF)
• private limited company (AS).

The easiest way to start a company in Norway would be a sole proprietorship (ENK). This is because this legal entity doesn’t require a minimum share capital, and the process of registration is quick. The founder makes all decisions by him/herself and may use the profit after tax return is submitted. Note that the owner has a full financial risk.

Setting up business in Norway is easily done through the Brønnøysund Register Centre. Altinn is the official website that provides all the information for establishing and running a business in Norway. There you can find relevant information and guides about registering your business and operating in Norway.

It is interesting to notice that 68% of all companies in Norway have no registered employees. 16 % of all companies have 1 to 4 employees. So, 84% of all Norwegian companies are small, micro companies. Only 1% are the companies which have between 50 and 99 employees and 0,5% of the market are the companies with 100 to 249 employees. That means that the Norwegian market mostly consists of very small companies.

TAX AND VAT

As a standard, both local and foreign companies established as permanent entities and earning profits from Norway are liable to pay 22% Norwegian corporate tax on earnings. All companies are subject to the same Norwegian corporate tax rate. The tax is called “advance tax” and is usually paid in February and April the year after the profit was earned. Based on the last tax return, the final settlement is usually done in October the year after the accounting year. You can read more about it here.

Most Norwegian companies that sell goods and services must register for VAT, unless they sell something exempt (for instance health and cultural services, teaching) from VAT. Registration needs to be done after sales exceed NOK 50,000 during last 12 months. Other services can be exceptions from VAT (for instance export) the company still needs to do VAT registration and submit VAT reports. The standard VAT rate is 25%. The reduced rate for food and beverages is 15%. For passenger transport and tickets to cinemas, museums, etc. it is 12 % and for raw fish it is 11,11%.  Foreign businesses that have VAT-liable turnover in Norway must register in the VAT Register using the same rules as Norwegian enterprises.

ACCOUNTING

When do you have to register your company in Norway?
To start the business activity you need to get the organization number at the Norwegian Register of Business Enterprises. Let’s take a look on 2 most common legal entity types in Norway.

A PRIVATE LIMITED COMPANY (AS)

• minimum share capital 30 000 NOK is required
• accounting from A to Z needs to be done
• VAT report every 2 months needs to be submitted
• full accounting needed
• salaries must be reported in Norway
• risk limited in share capital in Norway
• employees pay tax in Norway
• highly trusted in Norway   

A Norwegian branch of a foreign company (NUF)

• VAT report every 2 months
• full accounting needed
• salaries have to be reported in Norway
• risk could reach the mother company in the home country
• in some limited cases it is possible to make an under 6 months installation project, where the company and employees pay tax to the home country
• poorly trusted in Norway, difficult to find clients or partners for cooperation

Private limited company and joint-stock company (AS)

A private limited company is the most common business form in Norway and is usually registered by small and medium businesses.  There are approximately 400,000 private limited companies in Norway out of a total 656 000 companies. With this type of legal entity, the minimum share capital is NOK 30,000 (approx. EUR 4,200).

Opening this kind of company is possible with one founder. General meetings and the shareholders make all the major decisions. It is also possible to have several board members and a managing director. The capital of such a company is divided into shares and the decision to transfer these shares can be taken only by the majority of the votes of the board members. It should be noted that when establishing a private limited company, you don’t need to have a board but at least a managing director needs to be appointed.

A joint stock company is a business form mainly for bigger companies. The required capital that is divided into shares cannot be less than NOK 1,000,000 (approx. EUR 83,000). The capital is divided into stocks and can be listed in the stock market. General decisions are made by the general meeting of the shareholders, whereas the daily decisions by the members of the management board.

A Norwegian Branch of a foreign company (NUF)

NUF is a Norwegian branch of a foreign company that is subordinate to a foreign company. The foreign company is responsible for the Norwegian branch, and they must follow Norwegian rules. The branch must assign a contact person or a managing director who has a Norwegian national ID or D-number, there is no requirement that the person must be a resident of Norway.

If you are planning to start a short-term project in Norway NUF might be a suitable choice. Whether NUF is liable to pay taxes to Norway must be assessed case by case. It is possible to pay taxes to the home country only in certain conditions. If an employee has been working in Norway for more than 183 days during the last 12 months, he or she is liable to pay taxes in Norway from the first working day.

Sole proprietorship (ENK)

A sole proprietorship is a company where a private person can register as an entrepreneur. The single-person business is the easiest and cheapest way to start a business in Norway. The main benefits of this form of business are that the registration process is quite quick, the registration price is low (NOK 3,883 for electronic registration), no share capital is needed and it is easier to take the profit out of the company since there is no need to report any salary as long as there is only one owner without any other employees. However, the entrepreneur does not have the same social benefits as the employee as he/she is not classed as an employee. Sickness benefits are lower, and there are no unemployment benefits. Tax liability must be paid in advance, 4 times a year. This could cause cash-flow problems in the starting phase. The owner has full personal liability, including all debts. This form fits best for very small businesses, where the risks are low.

For more information, please take a look here.

What we advise

In general, we recommend a private limited company (AS) in most cases for someone who wants to start a company in Norway. This is because such companies have a better reputation and are more trusted in Norway among clients and suppliers. We have a lot of experience working with private limited companies and can offer you valuable advice.

Audit
For small companies, the auditor is usually not necessary. The audit is only needed when yearly turnover exceeds NOK 7,000,000 NOK, balance sheet assets amount is more than NOK 27,000,000 and the average number of employees reaches 10. It is called “opting out of audit”.

Employees
In Norway, there is no general minimum wage except for certain sectors. You can find more information regarding these sectors here.

Starting from 1st July 2024 new requirements to the employee contracts have entered into force. These contain more detailed information regarding employees’ rights and obligations. An employment contract must always be written. Employees must apply for a tax deduction card, which shows how much their employer must deduct before the salary is paid. The tax deduction will be 50% of the salary if the employee does not have a tax card.

Prices for registration of a company
For AS registration, the Norwegian government agency charges NOK 7,912 (NOK 6,825 for electronic registration). Electronic registration is possible if board members have a Norwegian identification number. For NUF registration, the Norwegian government agency charges NOK 4,398. The Leinonen office charges a fixed price of 30,000 NOK (+25% VAT) for the establishment process, including the application for a D-number.

EMPLOYMENT

The Working Environment Act regulates working life in Norway. It contains information about the working environment, working hours, and everything else that is a part of the relationship between employers and employees. The purpose of the Working Environment Act is to ensure safe employment conditions and equal treatment in working life.

Foreign workers are liable to pay Norwegian taxes and social charges always if they stay in the country for more than 183 days for 12 months. Your employer will typically arrange the registration with the Norwegian tax office and secure the social security number. Self-employed workers will need to arrange their tax registration and Norwegian social security number by themselves. Norwegian tax will be deducted from the gross salary of the employer.

Termination of the employment agreement at the probation period by the employee or employer may be carried out by providing two weeks’ written notice. After the probation period, it is much harder for an employer to cut the agreement.

PAYROLL

When is salary paid
Unless otherwise agreed, the salary usually is paid once a month. The time of payment of salary shall be in the employment contract. When paying salary, the employer must provide you with a paycheck that describes salary, tax deductions and any other deductions and additional benefits (mobile, Internet, etc.) If you do not get this, you need to ask your employer.

Vacation
All employees are entitled to at least 25 business days of holiday each year. Business days includes Saturdays. Sundays are not considered working days. Normally, six business days will correspond to one week. The employee thus has a requirement of four weeks and one day of holiday each calendar year. The holiday pay rate in this case will be 10,2 % of last year’s income.

The tariff settlement 2000/2001 gave many workers a fifth holiday week. This extra holiday also increases the holiday pay rate from 10,2% to 12 %.

Employees who reach the age of 60 during the holiday year are entitled to 1 week extra holiday and a 12,5% or 14,3% holiday pay base. You decide for yourself when you take this extra holiday, but you must notify the employer at least two weeks in advance.

Holiday Pay
As we just mentioned, holiday pay is earned the year before you take out your holiday, and this is called the earning year. If you haven’t worked the year before, you have the right to take a holiday anyway. But then you are not entitled to holiday pay.

Not all payments are included in the calculation. For example, holiday pay shall not be calculated on payments relating to travel expenses, lodging, holiday pay paid during the earning year, or share of net dividends. Holiday pay from bonus and commission-based salary shall be calculated when this remuneration is a result of personal work effort.

Payroll Taxation
Every employee in Norway has an individual tax percentage or a tax card which the tax is calculated from. The percentage or the tax card depends on salary level. The tax is progressive. With low income, you get a lower tax, and thus with higher income, you get a higher tax.

Employers are demanded to deduct a deposit tax from Gross salary and pay only net salary to the employee. The deposit tax must each payroll be transferred to a special tax account and paid further to the tax authorities bi-monthly.

On salary, there are also employer’s national insurance contributions of 14,1% in general (some lower percentage in rural areas). Every employer is required to pay this tax bi-monthly to the tax authorities if there is payroll in the company.

A mandatory occupational pension scheme must also be added to each employee’s salary. The minimum is 2% of the employee’s salary.

A-REPORT
The A-report is a monthly report from the employer to NAV, Statistics Norway and the Tax Administration on employees’ salaries, working conditions and withholding tax, as well as the employer’s national insurance contributions and financial tax for the company.

Anyone who has employees, or pays salary or other benefits, must submit a notification. It is important to remember that even though the employee doesn’t receive any salary for some period of time, the A-report still needs to be submitted by the employer. It is called “0-message”.

The A-message contains information on salaries and benefits, in addition to the status of all working conditions

The due date for A-report is the 5th of the month after the payroll.

FOREIGN WORKERS

The citizens of the member states of the European Union and the European Economic Area have the right to work in Norway. Registration is not necessary for those who come from Sweden, Denmark, Island and Finland. Workers from other EU/EEA need to register themselves with the police during the first 3 months in Norway. You can find more information here.

As a general rule foreign workers living or working in Norway are obliged to pay taxes and contributions to the Norwegian social security system. It entitles to certain Norwegian social welfare benefits, such as unemployment benefits, basic healthcare in Norway, maternity and child benefits, and a Norwegian pension.

Note that if a foreigner works in Norway over 183 days during 365 days or 270 days during 3 years, he/she will have a tax obligation to Norway from the first day in Norway.

The post BUSINESS IN NORWAY appeared first on Leinonen Norway.

Start preparations early

One of the most common mistakes big companies make is underestimating the time required. Complex corporate structures, group contributions and international operations often mean that the tax return requires significantly more work than the annual financial statements alone.

A good approach is to start preparations at the beginning of the fiscal year. Create a clear timeline that includes:

• Reconciling the general ledger and subsidiary ledgers
• Reviewing temporary and permanent differences
• Collecting documentation from subsidiaries
• Communicating with auditors and tax advisors

By spreading the work over several months companies can avoid time pressure and improve the quality of the submission.

Ensure accurate and complete documentation

Big companies with substantial investments in fixed assets such as machinery, buildings or IT infrastructure must be able to document tax-related depreciation correctly. This includes maintaining records of acquisition dates, cost, depreciation rates and any differences between accounting and tax depreciation.

Example:

If the company has undertaken significant IT investments that are partly capitalized and partly expensed, these decisions must be well documented. Inadequate documentation may lead to questions from the Norwegian Tax Administration and in worst case, adjustments during an audit. A structured fixed asset register and clear internal guidelines are therefore crucial.

Review tax positions and assess risk

Big companies often have complex tax positions such as carry-forward losses or deferred tax. It is important to conduct a thorough review and ask questions like:

• Are prior years’ tax positions still valid?
• Are there ongoing disputes or uncertainties regarding the interpretation of tax regulations?
• Have there been changes in the business that affect tax obligations?

Example:

In the case of major reorganization or merger the right to carry forward losses may be affected. Such situations should be assessed early and documented carefully.

Use digital tools

For big companies efficient and integrated accounting systems are critical for managing the complexity of tax returns. By using Tripletex as your accounting platform the organization can consolidate accounting, documentation and reporting in a single system. This improves oversight and reduces the risk of errors.

Tripletex supports continuous reconciliation throughout the year, including automated bank reconciliations, structured fixed asset registers and clear handling of VAT and tax items. This makes it easier to identify tax discrepancies early, rather than discovering them only at the time of filing.

Example:

A big company with multiple departments can use Tripletex to ensure a uniform chart of accounts and consistent bookkeeping routines. When preparing the tax return, the accounting team can generate reports across the organization, simplifying both internal clarifications and communications with auditors.

Tripletex also integrates with payroll, project management and invoicing systems, ensuring the tax base is built on complete and up-to-date data. When the numbers have been quality-assured throughout the year, preparing the tax return becomes more efficient and less resource-intensive.

For big companies seeking greater control, traceability and efficiency Tripletex can be a good key tool in professionalizing the tax return process.

Finalize with quality control before submission

Before submitting the tax return a thorough quality control review should be conducted. This may include:

• Verifying figures against the financial statements
• Reviewing notes and attachments
• Internal approval at the appropriate level

A structured final review ensures that the tax return provides an accurate and comprehensive picture of the company’s tax position. Collaboration with auditors or tax advisors can further enhance the quality of assessments.

Preparing a tax return is more than simply completing the correct forms. For big companies it is a strategic process that requires planning, expertise and well-established routines. By starting early, ensuring proper documentation, involving the right resources and using available tools  the tax return can become an efficient and value-adding part of the company’s financial management.

Contact us

Do you have any questions about your tax return or need assistance in preparing your company for an efficient and accurate submission? Our team of experienced tax advisors and accountants helps big companies with everything from documentation to optimizing the use of digital tools like Tripletex.

Contact us today for a non-binding consultation and receive tailored advice for your organization.

The post Tax Return in Norway: How to Prepare appeared first on Leinonen Norway.

In this article we give you an overview of public holidays in Norway in 2026 and employee rights.

Public holidays in 2026

• The year starts as usual with New Year’s Day. January 1st is a Thursday.
• The next days off will be around Easter. Maundy Thursday falls on April 2nd and Good Friday on April 3rd. Some employees get the whole Wednesday or half a day off before Maundy Thursday.
• Easter Sunday is on April 5th, and Easter Monday is on April 6th. Many shops have shorter opening hours on the Saturday before Easter Sunday.
• In May, we have 5 public holidays, but for many employees only 3 of them will result in extra days off. Labor Day is on Friday, May 1st. Ascension Day is on Thursday, May 14th. Constitution Day is on Sunday, May 17th, which means many employees will not get an extra day off. Restaurants are usually open on Constitution Day, but many other companies remain closed. Pentecost is on Sunday, May 24th, and Pentecost Monday is on May 25th. Whit Saturday falls on May 23rd, and many shops have shorter opening hours that day.
• In December there are 2 public holidays. Christmas Day is on Friday, December 25th and Boxing Day on Saturday, December 26th. Christmas Eve is on Thursday, December 24th, and even though it is not a public holiday, many employees still get the whole day or half the day off. New Year’s Eve is on Thursday, December 31st, but it is a normal working day. Many companies still give employees half or the whole day off.

Legal entitlements for employees

Generally, employees have time off on all public holidays and Sundays (which are also considered as public holidays). However, there are still several exceptions for situations when an employee can and need to work on public holidays. The first exception allows work in those cases when the nature of the work makes it necessary. It can for instance be health institutions, security guards, newspapers, hotels and factories which operate 24 hours shift schedules.

The second exception applies to points of sale. For instance, cafes, restaurants, petrol stations, museums, kiosks and shops under 100 square meters. Finally, the exception applies to those companies which have a collective agreement (“tariffavtale”). It is possible to have an agreement to work on Sundays or other public holidays if there is a time-limited and special need for this.

Holiday pay and salary on public holidays

Many people wonder if holiday pay is affected by public holidays, so let’s take a look at this topic now. Holiday pay in Norway is earned the year before payment. The minimum rate is 10,2 % of the salary earned in the previous year, but many companies which have a collective agreement use a higher rate of 12 %. If you are employed in a company where the holiday pay rate is 10,2 %, that means you are entitled to 4 weeks’ holiday + one day each year. If the rate is 12%, it means you have a 5 week holiday. It is quite common in Norway that all accrued holiday pay is paid out in June instead of regular salary.  However, we must clarify that the calculation of holiday pay is based on so-called working days (Monday to Saturday) and this gives an average of 26 working days per month. 5 weeks’ holiday gives therefore 30 working days (5 weeks*6 working days= 30). When paying holiday pay, the employee must therefore be deducted 4 working days’ salary. If you have 4 weeks’ + 1 day holiday, that gives 25 working days. Therefore, with the 10,2 % rate on holiday pay, employees receive an addition corresponding to 1/26 of their salary.

Since the holiday pay is usually paid in June when we have no other days off, the calculation will be as we described above for these employees who have a fixed monthly salary. For hourly workers holiday pay is simply added to the salary for hours from the previous month and no deduction or addition is needed. It can also be useful to know the rules regarding salary on public holidays. If the employee has a fixed monthly salary, the payment will be the same regardless of how many public holidays there are in the month. The salary will therefore be the same if an employee works every single working day in a month when there are no days off and for instance in March when we have days off due to Easter or in May when there are often many days off each year. For an employee with an hourly salary, the situation is different. In this case employees only gets paid for the days they work. If an employee has a day off on a public holiday, there will not be any compensation.

Generally for companies which operate on public holidays, employees get a regular salary. However, many of these have a collective agreement and that means a compensation for a public holiday needs to be paid in addition to regular salary which is at least 50 % of the normal salary.

International Worker’s Day and Constitution Day

There are own rules which apply for International Worker’s Day and Constitution Day when they are on another day other than Sunday or another public holiday. In these cases, an employee receives full salary even if he or she doesn’t work that day, and this applies also to those who work on hourly basis. For example, if hourly employee works every Thursday and 1^st May falls on a Thursday, the employee has that day off, but still gets paid. The condition for receiving salary on this day when having a day off for hourly employees is that employee has been employed for 30 consecutive days before this public holiday. If employee works on a such day, the same compensation as on Sundays will be given, at least 50 % in addition to the normal salary. If 1^st May or 17^th May falls on Sunday, hourly employes who have time off will not be paid anything, while those who work will be paid the same as if they worked on a normal Sunday, both normal salary and Sunday compensation. Other compensations can also be agreed in the employment contract.

Employer’s obligations

Finally, we can mention some obligations that an employer needs to comply with when it comes to working on public holidays. If an employee work on a Sunday or another public holiday, the employee must usually have the following Sunday off. Exceptions to the rule can be made by written agreement with the employee. In these cases, it will be made an agreement based on the average calculation of Sunday and public holidays. In this case employee must have at least every 4^th Sunday off. In addition, employees who work on Sundays are entitled to get Sunday off either immediately before or after vacation.

Do you want to know more about public holidays and payroll in Norway? Please contact us here.

The post Public Holidays and Compensations in Norway appeared first on Leinonen Norway.

What is a tax deduction account?

A tax deduction account is a restricted bank account that employers have been required to use to set aside tax withheld from employees’ salaries. The purpose is to ensure that these funds are kept separate from the company’s regular finances, so that the money is always available when the tax must be paid to the Norwegian Tax Administration. The funds cannot be used for operational purposes, and the account has been strictly regulated.

The scheme has existed in Norway since the 1950s. As digital solutions have gradually replaced manual processes, the need for such a separate account has been deemed less necessary. Many companies have found the arrangement time-consuming and administratively cumbersome, especially when it comes to monitoring balances and meeting term deadlines.

What changes on 1 January 2026?

From 1 January 2026, the requirement to maintain a tax deduction account will be abolished. At the same time, the deadline for paying withheld tax will change. Currently, tax deductions are paid on the 15th of every second month, but starting next year, they must be paid no later than the first business day after each payroll run.

For employers, this means you will no longer store withheld tax in a restricted account until the term deadline but instead pay it continuously. This requires payroll systems and routines that support ongoing payments and full oversight of all payroll dates to prevent delays.

Key points in the new system

The purpose of this reform is to modernize and simplify tax collection. The tax deduction account scheme was created for a time with manual processes and limited oversight. Today, both reporting and payment follow-up are digital, and the Tax Administration can monitor withheld tax in real time.

Introducing direct payment will:

• reduce administrative burden for employers
• ensure faster payment of withheld tax to the Tax Administration
• eliminate the risk of misuse of funds set aside for tax
• simplify everyday operations by removing the need for an extra bank account

In short, a system that is no longer considered necessary in a digital collection model is being phased out.

What do you need to do?

The change will simplify processes in the long term, but employers should prepare well in advance. This includes:

1. Updating payroll and accounting systems to handle direct payment of withheld tax.
2.  Ensuring proper routines, especially for companies with multiple payroll runs each month, variable pay dates, or back payments.
3. Training employees and payroll staff in the new deadlines and reporting requirements.
4. Planning the closure of the tax deduction account after the final payment term for 2025, including any necessary application for release of funds.
5. Implementing internal controls to ensure that tax deductions are paid correctly and on time.

What happens if an employer does not pay withheld tax?

Even though the new system will simplify the process, failure to pay withheld tax on time remains a criminal offense. Late or missing payments may result in fines, and the general manager can be held personally liable and face imprisonment of up to two years. It is therefore crucial to establish routines that make timely and accurate payment easy, and to ensure that systems and staff are well prepared.

Contact us

Do you have questions about how this change will affect your company? We are ready to assist you in ensuring everything is in place before 1 January 2026. We can review your current payroll processes, check that your systems are updated, and provide practical guidance on how the new system works in practice.

Our goal is to make the transition as smooth as possible for your company and ensure that both management and employees feel confident in their daily work. Feel free to contact us to schedule a meeting and find the best solution for your organization.

The post The Requirement for a Tax Deduction Account Will Be Abolished from 2026 appeared first on Leinonen Norway.

By understanding the entire process, companies can gain better control and reduce surprises. It is essential to integrate the process properly into financial workflows and routines.

VAT Rate in Norway: Calculation Examples

In Norway, the standard VAT rate is 25% for most goods and services, while food and beverages are taxed at 15%, and passenger transport, cinema tickets, and room rentals at 12%.

Example: A company invoices a customer 100,000 NOK excluding VAT, the total invoice amount including VAT would be 125,000 NOK (at 25%). The company then has output VAT of 25,000 NOK that must be reported and paid.

At the same time, the company can deduct input VAT on goods and services purchased for business use. This ensures that the company only pays the net value added to the government, the difference between purchases and sales.

Example: A company purchases goods for 200,000 NOK, excluding VAT (50,000 NOK input VAT) and sells goods for 300,000 NOK, excluding VAT (75,000 NOK output VAT). The net VAT payable to the Norwegian tax Administration is therefore 25,000 NOK (75,000-50,000).

You can read more about this topic here.

VAT Registration in Norway: When and How

To charge VAT and claim deductions for input VAT, a company must be registered in the VAT Register.

Registration is mandatory once a company has had a turnover of 50,000 NOK or more within a consecutive 12-month period. Charitable organizations have a higher threshold of 140,000 NOK.

Registration is done via Altinn by submitting a Coordinated Register Notification (BR-1010). The company provides it’s organization number, turnover and the type of goods or services it will sell. The CEO or another authorized signatory must sign the form. The Norwegian Tax Administration (Skatteetaten) reviews the application, and once approved, the company receives confirmation of registration.

After registration, all invoices for sales must include VAT at the correct rate and the company’s organization number followed by the letters “MVA” (VAT).

Start-up companies expecting to exceed the threshold soon can apply for pre-registration. This is particularly relevant for companies in the start-up phase with significant costs, allowing them to deduct input VAT on investments. More information is available on Skatteetaten’s website.

VAT Return Submission

Registered companies must submit a VAT return to Skatteetaten every 2 months. Reporting is done electronically via Altinn, and the figures are drawn from the accounting system. We use Tripletex to submit VAT returns. The system is integrated with Altinn and automatically notifies when the return has been received.

The submission itself is relatively quick. The time-consuming part is bookkeeping and reconciliation. We quality-assure the calculations and provide a receipt, so you know whether you need to pay VAT to Skatteetaten or are entitled to a refund.

Once the VAT return is submitted, the company must pay any VAT owed by the deadline. If input VAT exceeds output VAT, the company receives a refund of the difference from the authorities. This is an important part of liquidity management. Good routines ensure VAT does not become an unexpected burden.

Contact Us for VAT Management & More

Understanding the VAT process is not just about complying with regulations – it’s about building good routines that strengthen financial control and liquidity. With the right structure, digital support, and expert guidance, VAT management can be both simple and value-creating.

VAT is not just a requirement. It is a key to better oversight, secure operations, and smarter financial management. We assist with VAT registration, bookkeeping and submission of returns to The Norwegian Tax Administration. Contact us to arrange a meeting and discuss how we can support your business.  

The post VAT in Norway – Understanding the Full Reporting Process appeared first on Leinonen Norway.

Automation and digitalization

In recent years, the accounting industry has undergone major changes, primarily related to automation and digitalization. Previously, accounting involved extensive manual processes: invoices were entered manually, receipts were scanned, and bank reconciliations could take hours each week.

Today, much of this work happens automatically. Modern accounting systems such as Tripletex collect invoices electronically, automatically match payments to invoices, and can even interpret receipts using artificial intelligence (AI).

Automation frees up time and resources that were previously spent on manual data entry and control. Instead, the accounting team can focus on analysis, insights, and advisory work. These tasks create real value for the company and provide management with a stronger foundation for decision-making.

The role of the accountant in big companies

In big organizations, the accountant today is far more than a “data entry clerk.” The role has evolved into that of a strategic partner, someone who helps interpret financial data, analyze profitability, and identify opportunities for improvement.

Modern accountants can answer key questions such as:

• How profitable is our company?
• Can we reduce costs without compromising on quality?
• Is now the right time to invest?

The answers to these questions can have a significant impact on the company’s development. A skilled accountant provides the confidence needed to make well-informed decisions based on accurate data and analysis.

Handling international operations

Many big companies in Norway operate across borders, which makes accounting work more complex. Tax and VAT regulations vary from country to country, making it crucial to work with an experienced accountant who understands international accounting standards and compliance requirements.

An accountant with experience from international companies or access to a global network can ensure that your accounts are handled correctly across jurisdictions. This is especially important when your business has subsidiaries, branches, or international projects.

Reporting

Big companies are subject to strict reporting requirements. To avoid penalties from The Norwegian Tax Administration and ensure an efficient finance department, it is essential to submit accurate annual accounts, tax returns, and other statutory reports on time.

A professional accounting team ensures that all reporting is accurate and that the company remains fully compliant with all relevant laws and regulations. Modern accounting systems also make it easier for management to extract detailed reports and KPIs, giving a clear picture of the company’s financial position. This is valuable both for internal decision-making and for external stakeholders such as investors and the board.

Internal control and risk management

For big companies, strong internal control is a vital part of the accounting process. When the transaction volume is high and multiple people are involved in financial operations, the need for consistent follow-up and compliance increases. A robust control system ensures that all financial activities are carried out in accordance with applicable laws, internal guidelines, and corporate values.

Risk management is about identifying potential weaknesses before they develop into major challenges. A professional accountant can help establish effective control routines, giving management better oversight and predictability. This builds confidence and trust both internally and among investors and business partners.

Contact us

Accounting for big companies is far more than bookkeeping. With the right combination of skilled professionals, automated systems, and sound financial management, accounting can help increase profitability, reduce risk, and make your company better equipped for the future.

We handle accounting from A to Z for big companies. From daily bookkeeping to financial control and strategic advisory services – we’ve got you covered.

Contact us today to schedule a meeting and discuss how we can work together.

The post Accounting for big companies appeared first on Leinonen Norway.

At the same time, it is also at this size that many leaders begin to ask the question: Should we continue to handle payroll in-house, or would it be more efficient to outsource it to a professional partner who can take responsibility for the process?

Payroll is more than a payment

For employees, payroll is the most tangible and visible part of the employment relationship. Even small errors in the calculation of hours, overtime, or holiday pay can quickly create dissatisfaction and weaken trust in the employer.

A payroll manager also has to deal with far more than the salary transfer itself. Monthly reporting through Altinn, pension schemes, insurance, HR-related tasks, GDPR, and data protection are just some of the elements that require follow-up. For a company with around 100 employees, this represents a considerable administrative burden.

Challenges for big companies

We find that many companies face the same challenges as they grow. When the business reaches around 100 employees, the solutions that worked well for 20–30 employees are no longer sufficient. Flexibility and automation are required. Tripletex is well suited for companies with around 100 employees. The system includes functions that automatically add fixed allowances and deductions in payroll runs, which simplifies the process considerably. When the volume increases, manual routines become vulnerable. A single incorrect entry can affect many employees at once and have major consequences. And when time and resources are spent on corrections and manual processes, it often comes at the expense of other value-creating work. Staying up to date on laws and regulations within payroll and HR is also time-consuming, and the risk of errors can be costly.

How can a professional partner assist?

With solid experience from working with big companies, our team knows what it takes to ensure quality in every single payslip. Employees get access to a dedicated mobile app for time registration, travel expense claims, reimbursements, and mileage allowances. They can also view their payslips in the app. As a manager, you get extended access so you can easily approve hours and travel expenses. This results in fewer errors and less manual work, which is especially important for big companies. With us, you get a dedicated contact person who knows your company and its needs. This gives you predictability as a manager, since you don’t have to explain the situation from scratch every time. At the same time, we work as a team, so another person with knowledge of your company can step in if needed.

Reporting the a-melding for 100 employees can be time-consuming. We have well-established routines and set up a plan together with you to ensure that unnecessary fees from The Norwegian Tax Administration are avoided.

We offer predictable pricing based on the number of monthly payslips. The service can easily be scaled up or down as needed without unexpected costs. For us, it is not just about delivering a service. We want to be a long-term partner that helps strengthen your company’s operations and profitability. When payroll is always correct, employee satisfaction and trust are also strengthened. This gives the company a stronger reputation and greater attractiveness as an employer.

Contact us

Payroll for big companies is a task that requires accuracy, experience, and reliable systems. There is no room for mistakes, and there is no room for inefficient processes that steal unnecessary time from you as a leader. When you work with us, you get a professional partner who manages the entire payroll process from A to Z. Contact us today, and we will be happy to have a no-obligation meeting about how we can make payroll simpler, safer, and more efficient for your company.

The post Payroll for big companies appeared first on Leinonen Norway.

It is, however, a misconception to view the reduced tax as a gift from the state. The tax is not waived, only deferred. In Norway, income tax is calculated on the total income earned during the tax year, including December earnings. The final settlement takes place after submitting the annual tax return the following year. Therefore, whether the employer withholds half the advance tax in November or December, the total annual tax remains the same. For the remaining months, slightly higher deductions are made.

The “half tax” arrangement applies to employees on fixed salary, hourly wages, piecework or commission. It covers regular salary, permanent allowances and payments in kind. However, variable payments such as bonuses and overtime are taxed in full. Employees taxed under the 25% flat withholding tax scheme PAYE (“kildeskatt”) are not covered by this arrangement – for them, the normal withholding applies every month.

If you are concerned about paying too little tax during the year, you can ask your employer to withhold the full tax advance in December. This way, you avoid the risk of underpayment when the final tax assessment is made.

You can find more information here.

The post HALF TAX IN DECEMBER appeared first on Leinonen Norway.