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Taxation in Norway

Income Tax

Taxation in Norway (in NOKs):

0 – 456, 400 0%
490,000 – 796,400 9%
796,400 and above 12%

Income tax and wealth tax are direct taxes in Norway. Income tax is paid directly, as a percentage of income, and wealth tax is paid on things you own, such as your house. Taxes are paid to the state and the local municipality. A premium is also paid to the social security system, to fund public hospitals, medical treatment, and other social benefits. VAT is the main form of indirect tax in the country, which is a tax levied on sales, within Norway and on import.

Anybody involved in conducting business in the country needs to register, charge and pay tax on products they supply. VAT in Norway is currently calculated at 12 to 24 % of net price. Those who are self-employed are required to add this tax to sales of services and merchandise. Once you gain employment in Norway, you must apply for a tax card from your local taxation office immediately.

It is important to establish whether you are regarded as an employee or as self-employed/engaged in business in Norway in terms of your rights and responsibilities. If you have a regular salary directly connected to the work you perform, you are considered an employee. If you have independent responsibility for the outcome of the work and your client can claim compensation for any errors in the work, you are deemed to be self-employed/engaged in business.

Your liability may be dependent on whether your employer is foreign or Norwegian; this does not relate to their nationality but instead on their place of residence or where the company is registered. If you don't know whether they are Norwegian or foreign, you must contact your local tax assessment office in order to find out.

Everyone in Norway has a tax deduction card. To obtain a tax deduction card, you must contact your local tax assessment office. You will need:

• A valid passport or travel document

• Residence or work permit

• Your employment contract with Norwegian employer

• Your Norwegian D-number or national identity number (if applicable)

• You must inform the tax office of your mailing address, and also a residential address in your home country if you plan to return there

National Identity number or D - number

When you apply for a tax deduction card, you are issued with a registration number, a D-number or national identity number. When you open a bank account in Norway, you must provide them with this number. You are required to use the D-number or national identity number every time you come to Norway to work.

National insurance

If you pay national insurance in your home country, you will not be required to pay national insurance contributions in Norway. Submitting the E101 form from the national insurance service of your home country will ensure you will not need to pay a national insurance contribution in Norway.

Tax returns

Everyone who works in Norway has to submit a tax return. This must be submitted to the local tax assessment office by 30th April in the year following the income year. You will get your tax return at the end of March or the beginning of April. Once you submit your tax return, you will receive a tax settlement notice.

National Insurance

If you are a Norwegian citizen, or live and work in Norway, you are entitled to membership with the Norwegian National Insurance Scheme. This scheme, which is government run, entitles members to pensions and benefits, such as those regarding accidents, illness, pregnancy, birth, single parent families. The National Insurance Scheme makes up the country's most important general insurance scheme, taking into consideration the family allowance insurance schemes the scheme provides.

Corporation Tax

The corporate tax rate in Norway is 28%.

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