Taxes in Norway: types of taxes and fees, percentage of deductions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Many have probably heard that in Norway the standard of living is high, as well as salaries in the most common areas of activity, not to mention highly qualified specialists. Children from kindergartens are accustomed to self-development. The cost of education at all levels of the system is covered by the state. Moreover, the school education system provides for 13 years of education. Add to this a high standard of living and first-class medicine. It is not surprising that so many people want to move to this cold, but prosperous country.

Should I go there in search of a better life? First you need to find out what taxes exist in Norway and for what purposes they are levied.

Features of taxation in Norway

In this country, not only income tax, but also property tax is levied. They constitute a direct system of taxation. The indirect tax system consists of a tax on goods and products sold in shops and trading bases. AllThe deductions cover the state's expenses for education, pensions and other social needs. It is worth noting that there are practically no tourists who would remain illegally working in Norway. Many residents do not recognize guests who come for permanent residence, expressing obvious dissatisfaction with them.

Taxes in Norway for individuals are a way of forming a state-type treasury, which then goes to finance hospitals, educational institutions, the maintenance of children and the elderly. Part of the money is allocated for the construction of roads, grants for students, etc. Some of the country's services are absolutely free for residents, although they are expensive in the EU countries. However, within a Scandinavian country, one type of tax can account for all the deductions of other countries for each citizen.

Work in Norway

Not living, but working in this state for hire, you must pay taxes. As soon as you arrive in the city, you must contact the tax office yourself. Each foreigner is given eight days for this. A tax card is registered at the place of residence, in which all inspection payments are reflected. Tighter taxation rules have long been in place, and finance experts say the measures are very rigid and difficult to enforce. However, local authorities do not see problems, because salaries allow Norwegian citizens to live well.

In European countries, rates are reduced, and the Scandinavian Peninsula does not make such compromises. Therefore, you should find out in advance, make sure and decide for yourself whether you are readygive the lion's share of your salary to a country where you can hardly live to old age.

How much shareholders and legal entities pay

If you get a job in a joint-stock company, you should know that the director pays delingsmodellen - this is the "sharing model" of the capital that is in the company's turnover. Income tax in Norway is 28%, the rest of the deductions are divided into profit from capital, which is in operation and owned by the company, and income from the labor of each employee. At the end of the month, the report is openly posted for review:

• Employees themselves can check all reported payments.
• Employee sees how much money his colleague paid.
• Money can be counted, ask for information about redirecting accounts.

This is an open and transparent system for submitting information for every employed citizen. Shareholders' personal earnings are subject to other taxes that are outside the company's payroll at the level at which they are levied on individuals. The marginal rate of active shareholders is 52%, but the directory quickly found a way to transfer the margin through other divisional structures. Therefore, now for legal entities the rate is the same: only 28%.

Types of taxes for individuals

A simple ordinary worker who has signed a contract with the company receives an official allowance, like everyone else, must pay taxes in Norway. Based on the received card, the optimal rate is calculated for him.and assign a table number. It will be debited. It is much easier for an employer to withhold interest. And in order not to get confused, they start a form in which they indicate what percentage of the employee's salary will be withheld. At the same time:

1. Take into account position and salary.
2. Indicate how many children the employee has (even if they live abroad).
3. They mark age and length of service (even if a person worked in another country during a certain period).
4. Indicate social status (married, married, single).
5. Also indicate the place of residence. If a person lives at the expense of the employer, they are also charged a certain percentage for this after the deduction of the amount required to cover living expenses.
6. Note if he has property or real estate somewhere in the world.

Next, they calculate how many types of taxes can be set for a particular citizen. Unlike the Russian system, which has a standard fixed rate and everyone pays taxes based on their salary, taxes in Norway are different for everyone. That is why the reporting is read like a fresh morning newspaper with news.

Types of contributions for all able-bodied citizens

There are five types of taxes in the Scandinavian country:

1. Social. It is paid by all employees from their wages in the amount of 7.8%. The basis for calculation is the income of a citizen, its minimum amount is 49,650 kroons.
2. Income tax. The basis for calculation is the income of a citizen. Bid -27%.
3. Property tax. The state does not take into account the main housing. The tax is paid by citizens who own a holiday home. Its size is 2.5% of the appraised value of the property.
4. Personal tax. The basis for calculation is the person's income.
5. Tax on "we alth": deposits in both Norwegian and foreign banks, securities, stocks, as well as intangible assets, for example, when renting out a patent.

What do taxes go for

Since taxes are paid only at the discretion of the employer, it also takes into account how many hours a person works per day, what kind of schedule he has, vacation period and whether there are unpaid sick leaves. With any change, the recovery schedule must be balanced so that the employee does not overpay more than it should be. It would be unfair if a person with 30 years of service paid the same as a worker with 30 days of work.

What is the most common tax in Norway? Social (Trygdeavgifr), it is 8.2% of wages. Moreover, the amount is calculated from the tax-free gross and if the annual income is 49,651 crowns and more.

Norway payroll taxes (Inntektsskatt) are considered the toughest. They consist of three parts, and they are distributed between the commune, the state and the region. All together should add up to 27%.

Excess income tax (Toppskatt) - only 9% on top of other payments. Applied in cases where the employee's income is 550,550 kroons per year.

Property tax(Forumeskatt) is 2.5% of the market value of the property, provided that its entire value is 1,200,000 crowns.

Such rates are not always convenient for all residents, and the state pays attention to this. For example, for residents of Nord-Troms and Finnmark (northern areas), the excess income tax is only 7%, and the percentage of tax in Norway (income) is only 23.5%. The employer must also balance payments throughout the year so that by the end of the year the subordinate does not pay anything more than the amount to which he is accustomed. Ideally, if everything converges and there are no discrepancies.

Fiscal system under the EEC

Because Norway is not part of the European Union, it secures its own benefit reserve. However, the country is part of the European Economic Community. Therefore, the tax base may imply levies in national and European currencies. This moment financiers and analysts regard as positive. Taxes in Norway for individuals can form the budget at the regional and federal level. For example, when using the classical and traditional collection models, part of the income of foreign citizens is directed to the formation of the country's capital.

Income of local residents is distributed at the regional and state levels, due to them sources will be formed for the creation and replenishment of pension funds.

Citizen Benefits

There are two main deductions to the fiscal system that are not affected byprivileges. The rest of the profit is recalculated. Personal expenses (personfradrag) are associated with minimum payments, and expenses for working with basic deductions (minstefradrag):

• For personal expenses, 4,200 kr are paid monthly, equivalent to 54,000 per year.
• Working expenses require payment of 43%, but not more than 89,050 kroons, and not less than 31,800 kroons per year.

Only these two categories need to be paid if a citizen has certain benefits due to family, children, working conditions, etc. Sometimes the rate of these two deductions is changed if it is difficult for a person to live on the minimum wage.

Who gets benefit programs

Taxes in Norway may reduce some categories of citizens. Since the country no longer prohibits foreigners from working in their state, many communes have introduced certain amendments, completely or partially exempting certain categories of citizens from taxes. They also enjoy preferential taxation system:

• Pensioners.
• Foreigners.
• Inhabitants of the northern regions of Nord-Troms and Finnmark.
• Persons whose spouse is on a low income.
• Single parents.
• Parents of children under 12.
• Sailors.
• Borrowers and payers of loans.
• Citizens leaving on a business trip for a long time (away from family).
• Youth under 22.

There are many more perks, but these are the most basic ones. Much depends on the place of work, its location, equipment and field of activity.employee.

Example of tax deduction calculations

To better understand the tax system, let's look at a specific example. Consider income tax in Norway:

• Average salary per month=44 thousand kroons, 1 kroon - 7.64 rubles, which is about 330,000 rubles.
• The tax-free minimum (36,000 kroons) is deducted from the annual amount, which is 6.8% (children and spouse are absent).
• National tax - 13.8%.
• Municipal tax - 27-28%.
• Social funds - 7.8%.
• Total tax is 47-49.5%.
• Salary after taxes - 172,000 rubles.

The example shows that people give almost half of their income to the state. However, food prices are not very high for local residents. The average cost of food and housing is 120-140 thousand rubles (excluding cars and rental housing). And this increases the ability of the population to accumulate funds. In addition, do not forget that the average salary was taken for the calculation.

Tax refund

Are taxes refunded in Norway? How much interest can you save given these rates? Every year, from January 1, an employee is issued a report card in the form RF-1015B, which remains with him. Before the New Year, it is returned so that the person gets acquainted with the payments. Based on this, an income tax return form (Tax Return, Selvangivelse, Sølvmelding) is compiled. Citizen must fill out the RF-1030 form and send it to the tax office.

It is worth considering that payments do not change throughout the year, so some benefitsmay be invalid. If so, then the report is submitted by the end of March with amendments. At the same time, 270 kroons of tax are deducted for every 1000 kroons.

Challenge tax return

It is mandatory to check the data when filling out the reporting forms. If something changes during the year (a child is born, marriage or marriage), then additional data is entered about this. If there were no changes, then formally the card code does not change with respect to the amendments made, and then, in the absence of such a need, the person himself no longer fills out any reports.

Income tax in Norway needs to be checked against accrued benefits. At the end of June, the first lists of pen alties begin to arrive. Check declarations before the end of the next reporting year (it coincides with the calendar year). If there are violations, the citizen indicates in writing all claims. Typically, the return of income occurs within a period of up to three weeks from the date of verification of all declarations. If the grounds for challenging remain, then you need to prove the errors and submit the document for review, which will take about four months.