Tax In Norway

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Norway is complying with the country’s tax system. As well as paying tax in Norway, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income: 

If you’re working in Norway under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Norway for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Norway, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Norway through PAYE is left with the prospect doing everything themselves.

Do you know much about Norwegian Tax Law? Does Norway have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Norway can range from 1.4 to 15.4 percent on personal income, and a 23% general tax on gross income, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Norway, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax : 

Contractors in Norway are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Norwegian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Norwegian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Norwegian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Norway, many of whom are experts in tax and immigration laws. If you have any questions about tax in Norway, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Norwegian work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Norway but without the overhead of directly dealing with the Norwegian tax authorities. Get in touch with us today for some reliable advice on tax in Norway!

When Do You Need to Lodge Your Tax Return?: 
30th April
Tax Filing Deadline : 
30th April
Can you file it online? : 
Yes
Currency: 
Norwegian Kroner (NOK)
Tax-free Threshold in: 
None
Grossed Income: 
General Income Tax
Tax Rate: 
23%
Grossed Income: 
Bracket Tax on Personal Income
Grossed Income: 
169,000 - 237,900
Tax Rate: 
1.4%
Grossed Income: 
>237,900 - 598,050
Tax Rate: 
3.3%
Grossed Income: 
>598,050 - 962,050
Tax Rate: 
12.4%
Grossed Income: 
>962,050
Tax Rate: 
15.4%
How long does it take to set up: 
4 days
How much does it cost: 
NOK5,570 (electronically) – NOK6,797 (on paper)
Is it easy? : 
Starting a Business Rank: 19/190 (Source: World Bank)
How to File Taxes in: 

Step 1: Receive a Tax Return Form

In March/April, you will receive a tax return from the Norwegian Tax Authority if you work in Norway or on the Norwegian continental shelf. This gives an overview of your income, deductions, assets and debts for the last income year.

If you have not received a tax return before the end of April, complete and submit the form RF1281 – Tax return for individuals who have not received a pre-completed tax return.

Step 2: Verify the Pre-Filled Information

Check that the information is correct and complete. If so, you do not need to submit a tax return. If you need to make any changes, the deadline for making them and submitting the tax return is 30 April.

Remember to:

  • Check the information against monthly and annual documentation of your salary payments and tax deductions provided by your employer;
  • Check whether you are entitled to a deduction for various expenses from your taxable income;
  • Check that your personal details such as your address are correct;
  • Fill in your bank account details for any tax refunds; and
  • Complete Item 1.5.5 if you are a foreign employee and have worked for a foreign company in Norway, or have worked for a Norwegian or foreign company on the Norwegian continental shelf.

Step 3: Submit Your Tax Return

You can submit your tax return by post or online here.

Notes: 

2 Income Tax Bases: The general income tax base comprises your net income from all categories of taxable income i.e. employment, business, capital etc. The personal income tax base comprises your gross income from mainly employment, including benefits in kind, and pensions.

Personal Tax-Free Amount: Resident taxpayers are entitled to a personal tax-free amount. This amount varies depending on an individual’s tax class e.g. Class 1 applies to unmarried residents. 

Minimum Deduction: Taxpayers may claim a minimum deduction, which covers expenses associated with employment. Alternatively, a taxpayer may claim a deduction for actual expenses if these are higher. The deduction is 45% of the basis, the maximum being NOK97,610 and the minimum NOK4,000. Foreigners who become tax residents are also entitled to a standard deduction of 10% of taxable salary, the maximum being NOK40,000 for the first 2 tax assessments.

Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 

You become a tax resident in Norway when:

  • You stay in Norway for more than 183 days in one or more periods during any 12-month period; or
  • You stay in Norway for more than 270 days in one or more periods during any 36-month.

Residency takes place from the income year for which a requirement is fulfilment.

Am I taxed on my global income in: 

Residents are taxed on their worldwide income. Non-residents are taxed on their Norway-sourced income only.

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