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Everyone who has capital or income from work performed in Norway must submit a tax return. The due date for filing your tax return 2017 is 30 April 2018.

The tax percentage in Norway depends on the income. Income tax for 2018 is 23 % of net wages, but if the income exceeds gross NOK 169,000 per year or gross NOK 14,083 per month, a progressive bracket tax is levied. Your tax rate depends on which bracket your income is considered to be within.

You can find more info on tax rates here.

Deductions

When filing your tax return, you can be entitled to receive several deductions. You will have to claim these deductions on your tax return as they will normally not come automatically. Deductions reduce the tax amount levied.

Here are some of the deductions that may be relevant when filing your tax return:

1. Tax class

Some taxpayers can enter a different tax class if their spouse earns less than a minimum rate per year.

In Norway, taxpayers are entitled to receive a personal allowance. The personal allowance is a tax-free amount used when calculating tax on ordinary income (net income). The size of the personal allowance is determined by the tax class you are placed in. The personal allowance in class 2 is higher than in class 1.

You can get a higher personal allowance if your spouse is assessed under the same income as you.

If you are married and your spouse earned less than NOK 44,751 during 2017, you are entitled to claim tax class 2. The deduction must be claimed on your tax return.

For 2017 you do not need to send documentation related to this deduction (new tax office practice), but please notice that you must be able to present documentation of your spouse's income and certificate of marriage when asked to do so by the tax office.

Please also note that tax class 2 for spouses is no longer in use from 1 January 2018. The new regulations will however not affect your tax return in 2017.

2. Sick pay/sickness benefits

If a taxpayer becomes sick, he or she will, in most cases, receive sick pay from either their employer or the national insurance scheme. Sick pay is generally taxable to Norway as this is a substitute for your regular salary.

An exemption is granted to taxpayers that stay in Norway temporarily. Your stay is evaluated to be temporary if you stay less than 183 days or if you work offshore.

Sick pay is in these cases only taxable to Norway if the concerned person stays physically in Norway for the period he or she receives sickness benefits. This means that if you receive sick pay and stay outside Norway, the income will not be taxable to Norway. This must be claimed on your tax return. 

For 2017 it is no longer necessary to send documentation related to this kind of claim (new tax office practice), but please note that you must be able to present documentation of your stay outside Norway for the specific period when asked to do so by the tax office.

More information: A brief guide to your Norwegian tax return

3. Seaman's deduction

Seafarers are entitled to claim seaman's deduction if they have a minimum of 130 days at sea during the income year.

The deduction must be claimed on the tax return and is connected to the type of salary that has been reported to the tax office by the employer. The special deduction for seafarers is 30 percent of the income earned onboard a ship in service with an upper limit of NOK 80,000.

For 2017 it is not necessary to forward documentation related to the seaman’s deduction (new tax office practice), but please note that you must be able to present documentation for the number of days at sea when asked to do so by the tax office.

The documentation should include the following:

  • the period of time you worked onboard
  • the type of ship
  • the ship's name and shipping area
  • the income that was earned during the period for which the allowance is being claimed

In the case of seafarers employed onboard a ship in service, the documentation must be issued by the shipping company.

4. Interests on credit card debt or mortgage abroad

Local employees are entitled to a deduction for interests in Norway. As a foreigner, you may be granted deductions for interests abroad.

The deduction refers to paid interest on debt/mortgage and/or any interest paid to a credit institution in Norway and/or abroad.

Foreign personnel who are residents in another EU/EEA country will be entitled to a deduction of paid interests abroad only if more than 90 % of the global income originates from work carried out in Norway.

If the interests are paid through a Norwegian bank, the amounts will normally be pre-filled on your tax return. We always recommend that you check that the amounts are correct. If the item is not pre-filled, you must fill it in yourself. For 2017 you do not need to send any documentation of this (new tax office practice), but please note that you must be able to present documentation if the tax office asks for it.

The documentation should include the following:

  • debt and interest on debt with confirmation from the credit institution
  • if you own a resident/holiday home in another EEA state, you need documentation that you have not claimed a deduction for the interest on debt in the country in which the resident is situated
  • documentation that 90 % of your income is taxable in Norway. The basis for comparison is your total income before deductions in the various countries.

5. Child care expenses

If you provide for children under the age of 12, you may be entitled to claim deductions related to child care expenses.

The expenses can be related to:

  • day care
  • childminder
  • after school hours supervision scheme/sports schemes
  • transport to and from the above if it is a detour to your workplace
  • payment for the provision of childcare services

A deduction is given for documented expenses for the minding and care of children of up to a maximum of NOK 25,000 for one child, and an additional NOK 15,000 for each child in addition to the first. Spouses have a joint maximum amount for the deduction.

The deduction can be distributed freely among the family members if you do not wish to split the deduction equally. Both spouses must alter their tax returns in such cases. This also applies where the deduction concerns children who are not joint children. The deduction must be claimed on your tax return.

If the expenses are related to day care in Norway, the item will normally be pre-filled with the amount you have paid, as many institutions in Norway are obligated to report the paid amount to the tax office. We always recommend that you check that the amounts are correct.

If the item is not pre-filled, you must fill it in yourself. For 2017 you do not need to send any documentation of this (new tax office practice), but please notice that you must be able to present documentation if the tax office asks for it.

The documentation should include the following:

  • who the payments have been made to (name and address)
  • the amount paid
  • expenses in excess of NOK 10,000 on an annual basis must be paid via a bank or through salary deductions in order for you to be entitled to a deduction. You must be able to document payments through bank statements or payslips.

To ensure that all your deductions are reported correctly, ask our international tax team for assistance. For more information and link to the online tax return ordering page, visit our website: Tax return to Norway

Download free guide Individual income tax return Norway