Each year, law firms around the world are assessed and ranked by Legal 500. The rankings are based on feedback from clients and other market research. This year too, Brækhus is ranked as a Leading Firm.
In this year’s edition of Legal 500, a number of our lawyers, spread across various fields of expertise, receive recognition for their specialist skills.
Partners Alexander Mollan and Julius Berg Kaasin also achieve individual rankings and are ranked in the category ‘Next Generation Partner’. Alexander is recognised for his in-depth expertise in the field of TMT, and Julius is recognised for his expertise in the field of Intellectual Property.
We are pleased to observe that the fields in which we receive recognition by The Legal 500 represent core business areas for Brækhus. This underline our strong competence environments.
Highly competent, proactive and we were involved well along the way
Our experience with Brækhus is that they always seek the right expertise from the right person so that challenges and problems can be highlighted quickly. This means that the right solutions are chosen in a short time
A very nice, friendly, cooperative and resolutive team. They are always willing to help and support you in your cases, propose alternative ideas and solutions, and be honest and clear about your situation
An extremely high level of expertise, insight and experience that we as clients can capitalise on. Not least very quick responses to inquiries
The current Norwegian government lead, by Jonas Gahr Støre, has once again worked the night shift, and presented a hearing proposal on March 20 to tighten the rules for exit tax. The changes are proposed to take effect from today, Thursday, March 20, 2024.
The proposal involves relatively significant changes. Among other things, it will mean that the possibility of indefinitely postponed payment of calculated exit tax will be terminated, in addition to the introduction of exit tax on share savings accounts and capital insurance, as well as tax at death abroad.
This proposal is intended as part of the measures to stop the migration of wealthy individuals and capital, but it may well achieve the opposite; people will move out earlier than they otherwise would have. We must wait and see what the final result will be, both in terms of the final legal text and the effect the new rules will have on emigration.
Click here to read the government’s consultation document.
Corporate taxation expert from PwC becomes partner at Brækhus
We are delighted to welcome Kim Fosshaug as a partner at Brækhus from March 1st. Fosshaug joins Brækhus from the position as a Lawyer/Director at PwC.
Kim Fosshaug is an expert in national and international corporate taxation, with specialised knowledge in international taxation and in the financial sector. He assists national and international investment companies, financing institutions, and other financial sector entities with matters related to international taxation, regulatory issues, and EU/EEA law. He also offers advice on national and international tax and corporate law, including restructuring and reorganisations, and appeals.
– I am excited to be part of Brækhus and their renowned Tax and VAT team. Brækhus’s strong international profile and focus has been an important factor in my choice of Brækhus, says Fosshaug.
Partner Kim Fosshaug og Partner/Head of Tax and VAT, Nils Eriksen.
Brækhus’s Tax and VAT team is among the country’s leading tax law environments, which, unlike the “big four”, is audit-independent. The team provides advice at all stages of tax law and has extensive experience in national and international tax law, VAT, customs and excise duties, and cross-border taxation of individuals.
Brækhus assists Norwegian and international companies with establishment in Norway and abroad, and employees across borders through our well-known global mobility offering. For many of our international clients, Brækhus acts as a One-Stop-Shop – a single contact point for tax advice and all legal services.
– Tax is a strategically important area for Brækhus. We are very pleased to have signed Kim. With Kim on board, our already strong tax and VAT team is further strengthened,” says Nils Eriksen, Partner and Head of the Tax and VAT department.
Brækhus is ranked at the top in this year’s ITR World Tax
Brækhus has again achieved excellent rankings in International Tax Review World Tax for Indirect Tax, General Corporate Tax, Tax Controversy and Transactional Tax
International Tax Review World Tax has published this year’s edition of “The Comprehensive guide to the world’s leading tax firms”. We have received a top ranking for Indirect Tax (Tier 1), and very good rankings for General Corporate Tax (Tier 2), Tax Controversy (Tier 2) and Transactional Tax (Tier 3).
The rankings are based on extensive market analysis and feedback from clients and legal colleagues worldwide. We greatly appreciate the positive feedback we have received from both clients and peers, as these have been instrumental in achieving this recognition.
It is very inspiring that our clients recognize the work we do. This confirms that our strategy built on specialization and industry knowledge works
Our lawyers have been recognised in Legal 500 2023
Our lawyers have been recognised in the 2023 edition of Legal 500, a comprehensive global guide to law firms. Each year, Legal 500 evaluates and ranks law firms worldwide based on client feedback and market research. In this year’s edition, Brækhus has been ranked as a Leading Firm.
15 of our lawyers across 6 practice areas have been acknowledged in this year’s edition of Legal 500. Associate Partner Alexander Mollan has been named ‘Next Generation Partner’ for his expertise in the TMT (Technology, Media, and Telecommunications) practice area.
The recognized practice areas are fundamental to Brækhus’ core business, and we take great pride in being highlighted by Legal 500 for our strong expertise in these areas.
Our firm has been ranked in the following practice areas:
The rules on hiring from staffing companies is significantly tightened. The objective of the new restrictions is to limit the staffing industry’s scope and role, and to ensure full and permanent positions based on a two-party relationship between the employee and the employer. The changes support the main rule in the Working Environment Act that employees should be employed permanently.
The new rules will come into force on 1 April 2023, but with a three months transitional period for contracts already entered into.
The following changes have been adopted:
It is as a main rule no longer allowed to hire personnel for temporary work from staffing agencies.
In the event of a temporary need of labor (i.e. seasonal workers), it may be possible to hire temporarily if an agreement with the company’s union representatives allowing for hire of employees from staffing companies for temporary work. Such agreements will only be possible for companies bound by collective agreements with trade unions of a certain size.
Hiring of health personnel may, subject to further considerations, still be allowed.
Hiring of specialist workers performing advisory and consultancy services in clearly defined projects may, subject to further considerations, still be allowed.
Employees temporarily hired for more than 3 years continuously is given the right to permanent employment in the company which hired them (independent hiring basis)
The distinction between hiring of staff and engagements under service contracts is clarified more closely. A practical and legal guide on the matter will be prepared by the authorities.
The Norwegian Labour Inspection Authority (Arbeidstilsynet) is given extensive responsibility and authority to ensure compliance with the new regulations.
Please note that hiring employees from companies, whose main purpose is not to hire out labor is not affected by the restrictions. There are certain criteria which will have to be fulfilled and each specific case will have to be assessed closely before hire from such companies are carried out.
Furthermore, it will still be possible to make use of service contracts (i.e., subcontractors). The legal amendments also bring new provisions to clarify the distinctions between hiring of labor and service contracting. There are new additional factors to consider when assessing whether there is a hiring of employees or a service agreement (In Norwegian: entreprise). The rules lean towards defining more contracts as hiring of employees than before.
The new regulation intends not to introduce any new regulation for determining what is a staffing agency. As of today, in addition to typical agencies whose only business is lease of personnel, companies having its main revenue from lease of personnel will be covered. The same goes for companies with longer lease contracts and lease of personnel as separate business lines.
The new regulation will definitely create a need to look further into whether the company hiring out employees, is to be defined as a staffing agency. Further, it will be important to clarify if a classification as hire of personnel is likely and, if possible, to adjust contracts to avoid such a classification. Above all, the new situation needs to be addressed in order to avoid interruptions where previous used personnel are not able to perform work agreed. Change of model will also have an impact the tax situation for both the company and foreign employees used in Norway.
In what situations will it be possible to hire from staffing companies?
For temporary replacement of permanent employees during holidays, leave of absence, sick leave and similar situations.
Work training as for instance trainees.
For participants in Labor market schemes under the auspices of or in cooperation with the Labour and Welfare Administration (NAV).
For athletes, trainers, referees and other leaders within organized sports
Upon agreement with employees’ union representatives, if the company is bound by a collective agreement with a trade union of a certain size.
Options for companies in need of increased labor for a limited period:
Increase the number of permanent employees
Hire employees from companies which main purpose is not being a staffing company
Employ workers temporarily directly in the company
Divide the work by entering into construction agreements with clients.
These options will have to be assessed further based on the facts and circumstances of each individual case.
Special rules for construction work on construction sites in Oslo, Viken and former Vestfold county
A ban is introduced on hiring from staffing companies for construction work on construction sites in the aforementioned areas.
As of from 1 April 2023, it will be no possibility of hiring from staffing companies on construction sites in these areas as regards to the construction work. A transition period of 3 months applies to already concluded contracts.
The terms “construction work” and “construction site” are defined in separate regulations.
Our team is here to discuss these matters with you. Please do not hesitate to reach out to us.
Brækhus’ Tax Practice has again received good rankings in ITR World Tax.
As in previous years, we have received good rankings for Indirect Tax (Tier 2), General Corporate Tax (Tier 3) and Tax Controversy (Other notable). We would like to thank clients and peers for the recognition of Brækhus.
Nils Eriksen, who heads our Tax Practice, is “highly regarded”, with his 30 years of indirect tax and extensive international experience. Nils has recently co- authored the commentary to the Norwegian VAT Act.
“It is inspiring that our clients recognize the work we do. This confirms that our strategy built on specialization and industry knowledge works”, says Nils Eriksen.
Each year, the leading ranking firm Legal 500 assesses and recommends law firms around the world. All rankings are based on feedback from clients and market insights. In this year’s ranking, Brækhus is once again ranked ‘Leading Firm’.
15 of Brækhus’ lawyers from five different practice areas are recommended in the 2021 edition of the Legal 500 ranking. This year, Senior Lawyer Alexander Mollan is ranked as ‘Rising Star’ for his expertise within TMT (Technology, Media and Telecommunications). We are pleased to see that the practice areas Brækhus is recommended for, are core areas of our business where we have specialist competencies.
Senior Lawyer Alexander Mollan is ranked as ‘Rising Star’ by The Legal 500 for his expertise in Technology, Media, and Telecommunications.
Brækhus is ranked in the following practice areas:
Brækhus Advokatfirma is professional with dedicated advocates of the highest standards.
The Brækhus team is always one step ahead, ready to support their clients. Their advice is always provided in a context that makes it obvious they have deep insights into their clients’ needs.
Very strong at understanding our business as a client. Proactive and seeking closure.
Brexit for British businesses and employees – important information
The United Kingdom officially left the EU on 31 January 2020. A withdrawal agreement with Norway until 31 December 2020 has secured that much has remained the same, but from 1 January 2021 special regulations applicable only for EU/EEA citizens and businesses will in general no longer apply for British citizens and businesses operating in Norway. Here is important information relevant to British businesses or individuals operating and working in Norway.
Immigration
The freedom of movement for EU/EEA citizens to the UK, and UK citizens within EU/EEA, ends from 1 January 2021.
British citizens and their family members who want to live, work, or study in Norway after 31 December 2021 must apply for a residence permit under the ordinary immigration regulations applicable for nationals from countries outside the EU/EEA.
British citizens who are temporarily posted workers to Norway by their UK employer (service provider) will lose their rights to work in Norway from 31 December 2020 and must have a valid residence permit to continue the assignment from 1 January 2020. This also applies to workers who started their work assignment in Norway before 1 January 2021, and the assignment cannot be continued until a residence permit has been issued. They can stay in Norway until they have received an answer to the application but cannot work.
The requirements for obtaining a residence permit for non-EU/EEA citizens include minimum requirements for both wages and the employees’ skilled competence.
The current waiting time for processing the application is indicated to 8 weeks.
Exemptions:
British citizens and their family members who already have a right of residence in Norway as an EU/EEA citizen before 1 January 2021 will uphold the right after the transition period has ended.
British citizens employed by and working for a Norwegian employer, while commuting between the workplace in Norway and the place of residency in the UK (frontier workers), will retain the right of residence under the EU/EEA regulations scheme also after the transition period ends if the right were established by 31 December 2020.
A new type of residence permit will be issued for these individuals, and a portal for registering for the new resident permit will open on 4 January 2021. The application must be submitted by 31 December 2021. Meanwhile, they can continue to stay and work in Norway.
British citizens employed by an employer in another EU/EEA state can still work in Norway under the simplified EU/EEA scheme if they have a valid resident permit/ work permit in the EU/EEA state where they are employed.
For some specific work activities, the requirements for a work permit may be lifted. This depends on the nature of the work and how long the employee stays in Norway each time. For instance, if specific requirements are met, a residence permit may not be necessary for offshore workers.
British citizens will be able to travel for holidays and other short trips for up to 90 days within a 180 day period without a residence permit or visa. Work is in general not allowed during such visits.
Please note that various restrictions upon entering Norway are currently in place due to Covid-19.
Employer payroll reporting obligations
Brexit does not have any impact on British’ employers payroll reporting obligations for their workers in Norway, these remain the same after the transition period ends.
Social security
The EU / EEA rules and regulations for coordination of social security will not apply for cross border work between Norway and the UK from 1 January 2021.
An exemption has been agreed for employees already posted to Norway or the UK before 1 January 2021. A1 forms issued for these individuals will be valid until their end dates and can be prolonged within the current EU /EEA regulations. This requires that no significant change to the employees’ contract or other circumstances relevant for the initial issuance of the A1 form occurs.
For employees posted after 31 December 2020, Norway and Britain have agreed upon a temporary agreement on social security. This is mostly based on the old social security agreement from 1990, and have provisions regulating which of the two countries’ social security scheme a cross border employee should be covered by. Employees who are posted by their employer in the UK can through this agreement apply for the continuance of UK social security, and thereby be exempt from paying social security contributions to Norway, for assignments up to 3 years maximum.
Further clarification on specific details for the application processes is not yet in place.
Income tax
Income tax is not part of the EU/EEA agreement but rather regulated by the state’s domestic tax regulations. The tax treaty between Norway and the UK is not affected by Brexit. There are, however, several provisions of the domestic tax law that allows more beneficial taxation for citizens or corporations resident within the EU/EEA states. Once the transfer period ends on 31 December 2020, the following changes are likely unless any exemptions are granted:
Corporate tax:
Dividends paid from Norwegian companies to UK companies will be subject to withholding tax.
The temporary payment deferral of exit tax for cross border transfer of assets and liabilities will no longer apply. Losses related to exit to the UK will no longer be deductible, and tax credits in Norway will not be granted.
UK resident companies may not render and receive group contributions with tax effect.
Companies resident in the UK will be treated as third-country when applying the Norwegian CFC rules.
Upon cessation of tax liability to Norway, UK companies will have to settle their tax depreciation accounts. This also applies to UK resident companies that merge or demerge with a Norwegian company.
Personal income tax:
The 90% rule will no longer be applicable for UK individuals with limited tax liabilities to Norway.
Employees who are commuters for tax purposes must expect an increased frequency of home trips to the UK to maintain the commuter status. Unmarried employees who do not live with children they support in the UK must expect to have on average a home trip every three weeks. If the frequency of home trips and other requirements for commuter status is not met, the employee will not be able to claim a tax deduction for accommodation and home trips, or alternatively, if this is paid by the employer, it will be taxable.
Payments of capital insurance from an insurance company in the UK will be taxable for tax residents in Norway.
Individuals moving from Norway to the UK with latent taxable gains on shares subject to exit tax must furnish adequate security for the tax amount upon cessation of Norwegian tax residency.
Personal taxpayers living in the UK will not be able to open a Share Savings Account in Norway after 31 December 2020. Furthermore, it will no longer be possible to invest in British shares through the Share Savings Account after 31 December 2020. Existing investments in British shares can remain on the account.
VAT
On 18 December 2020 Norway adopted a Regulation on VAT registration by representative to prevent negative consequences for businesses established in the United Kingdom as a result of Brexit. The regulation entered into force with immediate effect.
In effect the regulation treats businesses established in the United Kingdom, with no place of business in Norway, but required to be VAT registered in Norway, on equal footing with businesses established in the EU/EEA also after the transitional period ending on 31 December 2020. The implications of this are that there is no requirement for such businesses to change their current registration. Neither will Norwegian VAT representatives be jointly and severally liable for VAT amounts or meeting VAT related bookkeeping requirements.
The regulation applies only to businesses established in the United Kingdom and already VAT registered in Norway either directly or through a VAT representative on 31 December 2020. From 1 January 2021, businesses established in the United Kingdom with no place of business in Norway, will therefore have to register through a Norwegian VAT representative who will be jointly and severally liable for the VAT amounts and meeting VAT related bookkeeping requirements. The Ministry of Finance has, however, announced that they will initiate work with a view to further change the relevant VAT legislation in this area. Bearing in mind the “reciprocity principle”, and that the United Kingdom is not requiring Norwegian established businesses to register through a VAT representative in the United Kingdom, we would not be surprised if such upcoming changes would mean that Norwegian VAT representative requirements for businesses established in the United Kingdom would be abolished also for such businesses registering after 31 December 2020. We would welcome such changes as soon as possible.
Other
It is a requirement that the general manager and at least half of the board members in private limited companies, public limited companies and cooperatives registered in Norway is either resident in Norway or both citizens of and resident in an EU/EEA State. From 1 January 2021 British citizens resident in the EEA or the United Kingdom and EU/EEA citizens resident in the United Kingdom will not meet the legal requirements mentioned above. Those affected may however apply for an exemption from the rules. The Ministry of Trade, Industries and Fisheries has prepared a standardized application form, which may be sent by e-mail to the Ministry postmottak@nfd.dep.no.
The ministry will seek to process all applications before 31 December 2020. Depending on the outcome of the free trade agreement negotiations, the government will also consider amending the legislation to extend EU/EEA treatment to the UK.
