Our expert: Karolina Strzelczyk
Consulent, translator at PoliNor Tjenester AS
Tax in Norway
I'm sure each of you sometimes wonders what our taxes are spent on. The tax we pay is used to fund public services such as healthcare, running hospitals, education and transport. In addition to covering community expenses taxes should contribute to financial equalization among the people of Norway.
Direct taxes (indirekte skatter) and indirect taxes (direkte skatter)
Taxes and fees constitute the majority of the revenues of the state, communes and counties. There is a difference between direct and indirect taxes:
See our next article:Transferring the unemployment benefit from Norway to Poland
Direct taxes
It is income tax and property tax. Income tax is the tax we pay on money from salaries, activities, interest on bank deposits, and so on.
Different taxes include indirect taxessuch as VAT (merverdiavgift). This is the tax we pay when buying goods and services. This means that some of what we pay for goods or services is paid to the state.
Skattekort, or everything about the tax card
People with a permanent number personal receive information about the tax card for the next calendar year automatically. The basis for the tax card is based on income, debt, assets from the previous year. However, the Tax Office (skatteetaten) does not know everything about you, so it is worth comparing the information in your tax card with the annual statement from your employer, NAVu and / or bank.
Tax in Norway
Foreign workers who own temporary D-number must apply for a new tax card every year. You can do it efficiently by logging into the website of the Tax Office, sending the application by post or submitting the application directly to the Tax Office in your place of residence.
Tax by table, percentage or withholding tax?
The employer pays tax according to your tax deduction card. Most people with permanent employment are charged tax according to the table. People who have more than one employer or receive additional benefits can switch to tax according to percentage - it will be more advantageous for them. Kildeskatt, i.e. withholding tax, is payable to new foreign employees with a temporary personal number.
Tax in Norway. The basis for calculating the tax
To calculate income to the tax base for 2020, the Tax Office takes information about your earnings for the month of November 2019 and multiplies this by 12, or your income from November 2018 to October 2019. In addition, there is a percentage change in wage income, as predicted in the National Budget ( Nasjonalbudsjettet) for 2020 (3,6%). The Tax Office uses the option that gives you the highest income.
In some cases, it happens that the Tax Office calculates too low or too high income, so it is important to control the information contained therein and make any changes.
Do you need help or would you like to know more? Contact us!
PoliNor Tjenester AS
Tel. + 47 69 01 79 71
We also invite you to our office at:
Statsminister Torps vei 1A
1738 Borgenhaugen
