Tax deductions in Norway are made through a special form. It is possible to fill it in electronically and send it to the Norwegian Tax Office (norw. the tax authorities). However, it is worth knowing how to prepare for this activity and how to get the maximum tax refund.
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Tax deductions in Norway - how to prepare?
Tax deductions in Norway must be made using a special form. You can do both onlineas well as the traditional way. Electronic completion of the form requires logging in to the system of the Norwegian Tax Office. To do this, you need to enter your ID using:
- MiniID,
- bankID,
- Mobile BankID,
- BuyPassId,
- mobile BuyPassID,
- Comfides.
It is worth remembering that the obligation to settle the tax occurs when your last year's income exceeded 55 NOK or the tax is higher than 000 NOK. Otherwise, you can apply for a tax exemption. To this end, you are obliged to fill in the appropriate form. You can calculate yourself what tax you are obliged to pay - just use a special calculator available at the website of the Norwegian Tax Office.
Tax deductions in Norway
Your tax deduction in Norway may differ from year to year. One of the most frequently used allowances is the standard deduction of 10%. You can apply for it as long as you have not been employed in Norway for more than 2 years. Additionally, if your spouse or spouse is entitled to this relief, you are both obliged to choose the same form of tax settlement.
10% Standardradrag - what does it result from?
The standard tax deduction is 10% of all income from the employment relationship. However, this amount may not exceed PLN 40. NOK. To calculate the amount of the deduction, both the gross salary and the allowances you are entitled to are taken into account: cash bonuses, benefits in kind and any excess reimbursement of expenses. As part of this write-off, you can deduct:
- tax deductible (norw. minstefradrag),
- tax-free amount (norw. personfradrag),
- eligible contribution to a public pension fund or a private pension fund,
- the part of the contribution for trade unions entitled to a write-off.
IMPORTANT! You are not entitled to the 10% basic tax relief no other tax deductions in Norway!
IMPORTANT! Employees who work in Norway temporarily for less than 6 months are entitled to a 10% discount all the time. Even if they work for more than two years. This applies, inter alia, to seasonal workers who perform professional activities in Norway, e.g. only in the summer season.
Pendler status
Any foreigner who commutes to the Norwegian workplace can obtain the pendler status. He is also entitled to specific tax deductions in Norway. Such status may be obtained by a person who:
- works and commutes to work outside the actual place of residence. The place of permanent residence must be regularly visited and located in one of the EEA countries,
- has family in their home country that is part of the EEA. In this case, the pendler status must be documented e.g. with a birth certificate, marriage certificate, etc.
Also read: Taxes in Norway 2018 - what has changed? >>>
The pendler status allows you to deduct from your tax in Norway any expenses related to food, accommodation, travel expenses etc. It is worth noting that in 2018 the regulations regarding the pendler status changed. Depending on the conditions in which the accommodation is provided, there will be different options for deducting the expenses related to the residence from tax in Norway. In addition, the accommodation costs will only be deductible for two years.
Learn more about a lonely pen >>>
People who have been living in Norway for 3 years
If you are not entitled to pendler status and basic tax deduction and you have been permanently resident in Norway for at least 3 years, you can deduct other actual living expenses:
- interest on the loan, even if the liability was incurred in Poland (>>> read more <<),
- parental allowance, ie NOK 25 for one child, NOK 000 for the second, etc. The expenses must be documented. In the case of a disabled child, for example, costs of specialist care can be deducted,
- discount for single parents bringing up children up to the age of 18,
- payment to an individual pension fund,
- interest on the debt (both in Poland and Norway),
- a special write-off related to some medical costs (norw. særfradrag),
- a copy of donations to non-governmental organizations,
- cost of getting income,
- tax-free amount,
- eligible contribution to a public pension fund or a private pension fund,
- the part of the contribution for trade unions entitled to a write-off.
- write-off for payments to the housing savings program for youth.
Tax deductions in Norway
To sum up - tax deductions in Norway include various forms of settlement with the Tax Office. Depending on the adopted form, the available reliefs differ. You can get the pendler status when you have a wife and / or children in Poland and visit them at least 3 times a year. You are entitled to the standard 10% deduction if you work in Norway for up to two years and want to deduct 10% of your employment income. In other cases, you are subject to ordinary settlement.
