Everyone who works in Norway or on the Norwegian continental shelf, unless persons taxed under the PAYE Scheme, is liable to submit a tax return to the Norwegian Tax Administration.
The Norwegian tax year runs from 1 January to 31 December. The tax return must be completed by 30 April the year following the income year. The tax return provides an overview of your income, deductions, wealth and debts.
The deadline for submitting personal tax returns 2022 is 30 April, 2023.
Make sure you include all deductions and earnings in your annual income tax return to Norway. Leaving out information may lead to increased tax, penalties or fines. In this guide, we will highlight various issues that foreigners working in Norway or on the Norwegian continental shelf should pay careful attention to.
When you come to Norway to work you will usually become member of the mandatory Norwegian National Insurance Scheme from your first day of work. EEA citizens are obliged to pay National Insurance contributions when working on board Norwegian vessels. However, exceptions may apply due to bilateral agreements between Norway and other countries. You can be exempted if you work on board a foreign-flagged vessel.
If you work onshore for a foreign employer, you may be allowed to maintain membership of the National Insurance Scheme in your home country. If so, you may be exempted in Norway.
From 2019, a new and simplified tax scheme is available for foreign workers in Norway. The scheme is called PAYE (Pay As You Earn). Most foreign workers will fall under this scheme the first year they work in Norway.
All you need to know: New tax scheme in Norway – PAYE
Work assignments across borders are common, but it can be a problem to recruit personnel with the right qualifications for positions abroad. One reason may be the uncertainty related to tax rates in a foreign country. Tax issues could cause doubts for employees offered international assignments.
The solution to the problem is named hypothetical tax or hypotax.
If you have foreign income and/or wealth, that has not been previously declared to the Norwegian Tax Administration, you can avoid penalties and punishment by using the voluntary correction process (tax amnesty).
More information: Tax amnesty
Make sure you do not forget to include any deductions or earnings in your tax return. Leaving out information may lead to increased tax, penalties or fines. Here are some of the most common situations that may lead to a wrong assessment for foreigners working in Norway or on the Norwegian continental shelf.
From the income year 2015 a new way of reporting to the Tax Administration has been implemented in Norway. The reporting system is named a-message. Foreign employers may not have sufficient knowledge of the Norwegian tax system. If your employer fails to submit correct information in the a-message, the information sent to the tax administration may be incorrect or incomplete.
As an employee, it is your responsibility to make sure that a tax return is submitted with all the correct details, even if your employer has provided incorrect or incomplete information. Due to recent changes in the Tax Administration regulations, the threshold for imposing penalty tax and fines has decreased significantly for the income year 2016 going forward compared to earlier years.
Foreign entertainers, including sportsmen, can benefit from the Foreign Artists Taxation Act. According to the Foreign Artists Taxation Act, the current tax rate is 15 percent.
If the entertainer’s stay in Norway exceeds 183 days in any 12 month period (or exceeds 270 days in any 36 month period), the entertainer will be taxed as a resident in Norway with ordinary tax rates.
The basic rule is that individuals working in Norway become subject to Norwegian tax from day one. However, a tax exemption may be granted. When working in Norway, it is important to identify your tax obligations globally, rather than only focusing on the salary earned in Norway.
Find out more: Taxes in Norway - employee taxation
You have a duty to give correct and complete information in the tax return. When you receive your tax assessment from the Norwegian Tax Administration it is important to check that all the information in the tax assessment is correct. If incorrect, you can change the information already submitted.
Find out how to control and correct your self-assessment: Check and correct your self-assessment
Working abroad? Avoid paying double social security contributions by submitting the A1 form. A1 is an official EU form confirming that a person is still a member of the home country's social security.
Find out more: National insurance when working abroad – how and when to use the A1 form
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