Do I get paid more if I have a company?

Short answer: Yes!

When you get paid to your company account, you will receive the full amount, without any tax deduction and without any reporting to tax authorities. We also will not deduct an administration fee, because we are not administering the payment as salary.

This means that you will get the full invoiced amount to your company bank account, and thus, more money. 

However, the thing to keep in mind, is that you will need to take care of your taxes, VAT and reporting by yourself, in this case.

So you still need to pay taxes, including VAT if you are registered in the VAT registry. In addition, it’s quite common for freelancers who manage their own company, to invest in accounting systems and even an accountant to help them with their accounts and reporting.

Below, we have laid out some details to make it easier for you to decide what to do.

PayoutPartner provides two options:

• PayoutPartner Lønn - if you don't have or don't want to run your own company
• PayoutPartner Firma - if you have your own company and want to get paid directly

We recommend that you use PayoutPartner Lønn or PayoutPartner Firma based on your own needs and personal assessment. 

Here are the things you should think about before deciding to use PayoutPartner Lønn or PayoutPartner Firma:

1. How much will you earn as a freelancer per month?
   1. As a company (registered in the VAT registry), you have to submit a VAT report on Altinn every 2 months / annually
   2. You have to submit this report even if you earn nothing, for as long as your company exists
2. How much will you expense as costs?
   1. As a company, you can write off expenses easily
   2. Via PayoutPartner lønn, you can only write off expenses directly related to each specific job assignment
3. How much will you spend on an accountant?
   1. PayoutPartner Lønn costs are dependent on how much you invoice your customers
   2. If an accountant costs ~3000kr per month, check if PayoutPartner Lønn will be cheaper for you
4. Do I pay Employers Tax if I have my own company?
   1. If you have your own ENK, and you are paying only yourself - then no. You do not pay employers tax.
   2. If you have your own AS, then yes. You have to pay employers tax when you take out salary for yourself.
   3. If you are paying your employees (regardless of ENK or AS), you have to pay employers tax.
      1. There is an exception for spouses, but we recommend asking an accountant as these rules can change.

If you still don't know what to choose

How about choosing PayoutPartner Lønn today, and then taking your time to decide whether you want PayoutPartner Firma.

Both options are always available, and you can switch between them as much as you like.

Read more updated information here: https://www.skatteetaten.no/bedrift-og-organisasjon/avgifter/mva/