The validity of order regarding national insurance fee

Justices: Øie, Bull, Bergsjø, Arntzen, Thyness

A Norwegian employee in Malaysia was a voluntary member of the pension scheme under the national insurance. In a case regarding which national insurance contributions should apply to him, the Supreme Court first referred to his right, in the tax assessment, to choose between invoking the one-year rule in section 2-1 subsection 10 (a) of the Tax Act, which he had for the relevant income year, and the Tax Agreement between Norway and Malaysia. As in the lower instances, the Supreme Court found that "tax liable to Norway" in section 3 (c) of Regulations 27 January 2012 no. 73 – the National Insurance Contributions Regulations had to be interpreted in the same way as "tax liability" in the Tax Act. The employee was thus tax liable to Norway and was then to pay national insurance contributions at a low rate of 6.9 percent, not at a high rate of 23.6 percent, as asserted by the State. Considerations of objective, systemic considerations, national insurance practice or other policy considerations could not give any other result. The State's appeal against the Court of Appeal's judgment was dismissed.