Directors' fees and remuneration associated with holding office
Concerns directors' fees and remuneration associated with holding office
Brief information about directors' fees and remuneration associated with holding office
Specify directors' fees and remuneration associated with holding office.
Concerns fees and remuneration as a member of, for example, a:
- board of directors
- committee of representatives
- committees
- board
Also concerns fees and remuneration to:
- councillors
- mayors
As part of commercial activity
In some cases, directors’ fees can be received as part of an enterprise for the recipient. Such remuneration is treated as a benefit gained through work, even if the office was held as part of commercial activity. This applies to both public and private sector activity. Fees paid to members of municipal councils, ministerial committees, foundations, etc. must be specified here.
Abroad
Special tax rules apply when an income recipient is resident abroad for tax purposes. All work in connection with board posts is considered to be carried out during the board meeting(s). The country in which the person is resident for tax purposes must be specified, as this can be of importance for the tax liability.
From 2019, a new scheme has been introduced with withholding tax on wages for foreign workers. The withholding tax scheme also applies to people who live abroad and receive board fees and other similar remunerations from Norwegian companies. See more information on the scheme here.
The information you must provide
Amount | NOK x |
Type of salary or benefit | Cash benefit, directors’ fees and remuneration associated with holding office |
Subject to withholding tax | Yes |
Basis for employer's national insurance contributions | Yes/No |
Tax and contribution rules | If relevant |
Additional information: |
|
Resident for tax purposes | Country code |
Amount
Specify the gross amount.
Type of salary or benefit
Specify “cash benefit” and “directors’ fees and remuneration associated with holding office”.
Subject to withholding tax
The benefit must always be specified as subject to withholding tax.
You do not deduct withholding tax if the amount to be deducted is less than the minimum thresholds for withholding tax.
Basis for employer's national insurance contributions
You must calculate employer’s national insurance contributions on this benefit.
Exemption:
You don't have to calculate employer’s national insurance contributions when the income recipient:
- is covered by the national insurance legislation of another country in accordance with a convention or the EEA Agreement
- is a foreign employee who is not a member of the Norwegian National Insurance scheme and who works on the Norwegian continental shelf or in Norwegian territorial waters
In some cases, the employee has a confirmation of a membership that is being maintained by their national insurance authority (A1 or another form). The Labour and Welfare Administration’s division for membership and contributions to the Norwegian National Insurance Scheme, NAV Medlemskap og avgift, will consider all documentation, register any exceptions from membership in the National Insurance Scheme and the relevant periods of exception, as well as whether the exception applies to all or parts of the National Insurance Scheme. Registered exceptions from membership in the Norwegian National Insurance Scheme are sendt electronically from NAV to the Tax Administration.
Only exceptions registered with the Tax Administration will allow the employer to omit calculation of employer's national insurance contributions for an employee.
The Tax Administration may assess employer's national insurance contributions if there is no exception registered for the employee, and if the reported salary or benefit is not included in the taxable basis.
The employer or the employee can contact NAV regarding questions about whether an exception from the membership in the National Insurance Scheme is registered.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rules:
This tax and contribution rule concerns:
- income recipients who are covered by the Svalbard Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Svalbard” for salary and other benefits.
You must also specify "Svalbard" for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Svalbard regarding trade union fees, premium for pension scheme, National Insurance premiums and education and development fund premiums and portacabin rent.
This tax and contribution rule concerns:
- income recipients who are covered by the Jan Mayen Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Jan Mayen and the Norwegian dependencies” for salary and other benefits.
You must also specify “Jan Mayen and the Norwegian dependencies” for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Jan Mayen and the Norwegian dependencies regarding trade union fees and premium for pension scheme.
See also the detailed information concerning Jan Mayen and the Norwegian dependencies
This tax and contribution rule concerns:
- seafarers who are entitled to a special deduction (seafarer's allowance) from their salary and other benefits,
- when it is earned through work on-board a vessel in service.
If the income recipient fulfils the relevant conditions, you must specify “special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
Jan Mayen and the Norwegian dependencies and special allowance for seafarers
Does not apply when the income recipient is resident abroad for tax purposes.
If you submit an a-melding for a tax-free organisation, you can use the following tax and contribution rule:
If you submit an a-melding for a tax-free organisation (tax-free companies, associations and institutions referred to in Section 2-32 first paragraph of the Tax Act), you can specify “tax-free organisation” for the salary or benefit.
If you do this, you won't need to consider whether the income recipient will pass the reporting obligation threshold of NOK 10,000 during the year. The specification must be used from the first krone and for payments throughout the whole year.
See also the detailed information concerning tax-free organisation
Additional information
- Resident for tax purposes
If the income recipient is resident abroad for tax purposes, you must specify the country in which the person is resident for tax purposes.
Correcting errors
MAGNET_EDAG-114 Invalid value |
MAGNET_EDAG-114B Invalid value for this calendar month |
MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
MAGNET_EDAG-230B Invalid value |
MAGNET_EDAG-243 Information on earnings period is invalid |
MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
NAV uses information concerning salary and benefits to calculate unemployment benefits and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments.
According to the National Insurance Act, the income must always be included when calculating the basis for sickness benefit, etc. This applies if the fee does not lapse in the event of illness, etc. and must not be replaced by a National Insurance benefit. Depending on any attendance obligation, for example, a board fee could continue to accrue if the director takes sick leave or goes on parental leave. This must be considered in each individual case.
The Norwegian Tax Administration uses information concerning salary and other benefits to assess income. The amount is aggregated with other benefits and transferred to the tax return.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.