Given their close proximity and strong business ties with the UK, the Scandinavian countries of Norway and Denmark are two locations we frequently see UK companies operating in.
But what some companies may be unaware of is that when undertaking such work, whether this be offshore or onshore, and whether or not connected to oil and gas projects, the UK company and its employees may have a Norwegian or Danish tax liability to report and pay. In addition, there will be considerations as to whether that overseas tax paid can be relieved against home country taxes, to minimise double taxation. There are often situations where no tax needs paid but there is still a tax filing obligation.
Failure to submit returns and pay resultant liabilities can incur significant penalties and give rise to other associated issues. If your company has worked in either Norway or Denmark (or in Norwegian or Danish waters) during 2017, then we recommend action is taken now, as the Corporate Tax reporting deadlines are fast approaching.
Here at AAB, we are experts in advising companies that have, or are considering, work in overseas locations and in particular, Norway and Denmark. On a daily basis, we assist companies in assessing what their obligations may be and support them in making all necessary tax filings and payments, ensuring the process is as seamless and painless as possible.