Tax Declaration In Norway: Step By Step Guide
Filing your tax declaration in Norway doesn’t have to feel like a trek across a Nordic glacier.
With the right information and tools, it can be as smooth as gliding through the serene fjords.
This guide is designed to demystify the process, providing clear, step-by-step instructions to ensure you navigate the Norwegian tax system with ease and confidence, whether you’re a long-time local or a newcomer to the land of the midnight sun.
Let’s dive in!
Is It Mandatory To File A Tax Declaration In Norway?
Yes, everyone who works on the Norwegian continental shelf or in Norway must file a tax return with the Norwegian Tax Administration, except those taxed under the PAYE Scheme.
The tax year in Norway runs from 1 January to 31 December. The tax return must be submitted by 30 April following the income year.
Tax return overviews your earnings, deductions, assets, and debt. You must verify that the data on the tax return is accurate to ensure you pay only a little tax.
In Norway, the tax rate is based on an individual’s income. The general income tax rate is 22% of net wages in 2022. A progressive bracket tax is applied if the annual income reaches gross NOK 190,349 or the monthly income exceeds gross NOK 15,862.
Can You Claim Taxes Back In Norway?
The information the Norwegian tax authorities have obtained about you from your employer and other reporting-responsible businesses is detailed in the pre-completed tax return. You will need to review the pre-filled tax return and make changes.
Workers from other countries should pay close attention to any details missing from the pre-filled tax return. If you have overpaid taxes or are entitled to deductions or credits, you may be eligible for a tax refund in Norway.
If you have overpaid taxes, the Norwegian Tax Administration will determine your ultimate tax obligation and issue you a bill or a refund.
How To Get More Taxes Back From Norway?
The taxable expenses and deductions many international employees are eligible for must be added. As a result, we advise that you carefully review the pre-completed tax return and seek advice if you have any questions regarding the reporting.
Deductions
You may be eligible for various deductions when completing your tax return. You must claim these deductions on your tax return because they are typically not provided automatically. Deductions lower the total tax imposed.
Some of the deductions listed below may be applicable when you file your tax return:
Standard Deduction For Foreign Workers Who Live And Work Overseas On the Continental Shelf
A general income deduction is the standard deduction for foreign workers who live overseas and work on the continental shelf. With a cap of NOK 40,000, the deduction is 10% of gross employment income.
However, if you choose to take the standard deduction, a variety of other deductions no longer apply. These include costs like travel costs and mortgage/credit card interest.
The costs will be tax deductible if you use that deduction. In other words, you must decide between taking the standard deduction or your actual expenses.
Sick Leave And Benefits
A taxpayer who becomes ill typically receives sick pay from their employment or the national insurance program. Since sick pay replaces regular pay, it is typically taxable in Norway.
Taxpayers who spend a brief period in Norway are exempt. If you stay for fewer than 183 days or if you work abroad, your stay is considered transitory.
In these situations, receiving sickness benefits is only taxed in Norway if the recipient physically resides there. This implies that your income won’t be subject to Norwegian taxation if you receive sick pay while residing outside of Norway.
You must include this on your tax return. Your employer needs to certify the claim.
The claim should include the following in the confirmation:
- sick leave duration
- the earnings during the sick leave period
Seaman’s Deductions
If seafarers spend at least 130 days at sea during the tax year, they can claim the seaman’s deduction.
The deduction, which is related to the kind of salary that the employer has disclosed to the tax office, must be claimed on the tax return. The maximum special deduction for sailors is NOK 80,000, equaling 30% of the revenue generated while working aboard a ship in service.
Documentation about the seaman’s deduction need not be forwarded, but you must be able to provide proof of the number of days spent at sea if the tax office requests it.
The following information should be in the documentation:
- the length of time you spent onboard,
- the type of ship, its name, and its shipping region, as well as
- the money made during the time for which the allowance is being requested.
The shipping firm must supply the documentation for seafarers on board a ship in operation.
Foreign Mortgage Or Credit Card Interest
For interests in Norway, local employees are eligible for a deduction. You can be eligible for foreign interest deductions if you’re a foreigner.
Any interest paid to a credit institution in Norway or abroad and interest paid on debt or mortgage are included in the deduction.
Only if more than 90% of the total revenue comes from work performed in Norway can foreign employees who reside in another EU/EEA nation claim a deduction for interest payments made abroad.
The amounts on your tax return will often be pre-filled if the interest payments are made through a Norwegian bank. We advise you to verify the quantities are accurate at all times. You must do so if the item still needs to be filled out.
While you do not need to send any supporting paperwork, you must be prepared to do so if the tax office requests it.
The following should be included in the documentation:
- With authorization from the creditor, debt, and interest on debt are disclosed.
- You need proof that you have yet to claim a deduction for the interest on debt in the nation where your resident/vacation property is located if you own a residence there.
Child Care Costs
You can deduct childcare costs if you provide for children under twelve.
The costs may be connected to:
- Child care
- Childminder
- After-school supervision programs and sports initiatives
If the aforementioned involves a diversion to your place of employment, transportation to and from there, remuneration for rendering childcare services
A deduction of up to NOK 25,000 for one child and an extra NOK 15,000 for each additional child is allowed for legitimate costs related to childminding and childcare. The deduction’s joint maximum is for spouses.
You must complete it yourself if it still needs to be filled out. You can only supply supporting documentation, but remember that you must be prepared to provide it if the tax office requests it.
The following information should be in the documentation:
- who received the payments (name and address)
- the sum received
You are eligible for a deduction if your annual expenses total more than NOK 10,000 and are made through wage deductions or bank transfers. You must be able to provide bank statements or paystubs as proof of payments.
How To File A Tax Declaration In Norway?
Electronic Income Tax Assessment
Filing your tax return in Norway using an online tax program is simple and quick. These computer programs are made to walk you through the procedure, assist you in figuring out your taxes, and ensure you’re utilizing all allowable deductions and credits.
Use A Tax Return Online Software
According to Norwegian tax authorities, the entire tax system will eventually be electronic. Over the past few years, tax return cross-checking has replaced personal service and management.
Self–assessment has been implemented, and the taxpayer must establish the right amount of tax to be paid. Any anomalies between the information on your tax return and the information stored by the tax authorities may be found by electronic crosschecks.
The tax authorities could ask for additional information in response to such anomalies. Tax authorities may even notify the taxpayer before a potential fine for filing erroneous or insufficient information in specific circumstances.
Use the tools and assistance the Norwegian Tax Administration offers.
Use A Tax Consultant
Hiring a tax consultant is an excellent alternative if you have complicated tax situations or would prefer professional advice and knowledge when paying your taxes in Norway. Employ a tax expert to guarantee adherence to Norwegian tax regulations.
Use The Official Norway Tax Authorities Online Form
The official online form the Norway Tax Authorities provides is a simple and secure way to file your tax return. Individuals can file their tax returns electronically through a platform offered by the Norwegian Tax Administration (Skatteetaten).
How to utilize the official online form is as follows:
Register Or Log In
Use your credentials to log in if you have already used the online system. You must create an account if you are new to the system. Follow the signup instructions and enter the required personal data.
New Tax Return Start
You can start filing your tax return once you log in. Look for the choice to open an existing tax return or to begin a new one.
Fill Out The Online Form
You can navigate the online form’s many sections, which include those that ask about your income, deductions, and other financial information. Give precise and comprehensive information.
Use Credits And Deductions
You can list deductions for work-related, extraordinary, and unusual expenses on the web form. Make careful to file all applicable deductions and credits.
Examine And Confirm
Review your supplied data carefully to verify correctness before completing your tax return. Make any alterations or additions that are required.
Your Tax Return Must Be Filed
When satisfied with the data and computations, submit your tax return online using electronic filing.
Documents Needed For Your Tax Return In Norway
Your tax return form (if received), PIN, income statements, evidence of deductions, and pertinent cost receipts are often requested papers. Keep track of all transactions that may affect your tax liability.
Consider the following possibilities if you require assistance filing your taxes:
Dealing With Double Taxation And Tax Treaties
To prevent double taxation, it is crucial to understand the tax agreements between Norway and your own country.
Learn about the provisions of the tax treaty before requesting relief from double taxation. To avoid twice paying taxes on the same income, include any overseas tax credits in your Norwegian tax return.
When Is The Norwegian Tax Return Deadline?
The tax return must be submitted annually, and any necessary adjustments must be made by April 30. You still have time to make changes and file the tax return if you find mistakes or get additional, delayed information.
Even after the deadline, you may make changes and submit the document as often as necessary. Before we ask for paperwork, you are not required to give it to us.
The pre-completed information accessible as of the deadline must be included in tax returns filed by April 30 to be considered timely.
How Long Does It Take To Get Your Tax Refund In Norway?
In Norway, processing times for tax refunds can differ. Depending on the complexity of your return, it usually takes a few weeks to a few months. You can monitor your refund’s progress through the Norwegian Tax Administration’s online portal.
Standard Processing Time
After the filing deadline, which is usually April 30th, if your tax return is simple and no problems or discrepancies are found, you should anticipate receiving your tax refund within a few weeks to a few months.
Complex Returns
Your tax return may take longer if it is more complicated, has unique deductions, or needs further verification by the Norwegian Tax Administration. Processing complicated returns may take several months.
Date Of Submission
The timing of your tax return submission also impacts how quickly it is processed. A quicker refund might be obtained by filing earlier in the tax season when the tax authorities are less busy.
Verification And Auditing
The processing time may be significantly increased if the tax authorities need to validate the data on your tax return or perform an audit. The completion of an audit may take many months or longer.
Payment Method
The method you pick to pay for your tax return may affect how quickly you get your money. For instance, receiving a physical check is usually quicker than direct bank transactions.
Communication
Sign in to the Norwegian Tax Administration’s web portal to track your tax refund’s progress. This portal offers details on the status of your tax return and any refund-related changes.
Conclusion
As we conclude this guide to tax declaration in Norway, remember that mastering this process is a key part of life in this beautiful, orderly country.
With these insights, you’re now well-equipped to handle your tax obligations with the same tranquility that embodies the Norwegian spirit. Here’s to managing your taxes as effortlessly as Norway embraces its stunning natural beauty!
Tax Mastery!
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