Tax returns in Norway: Five things you need to know
Norway’s tax season is upon us. We’ve put together some essential tips and information to help you understand the Norwegian tax system better.
Keeping track of the key dates
Taxes can be tricky for some, but it can pay to be prepared. Keeping track of this year’s key dates when it comes to tax season can be a huge helping hand.
In Norway, tax returns are usually sent out from March 14th, and most people receive them by the end of March. Then, April 30th will see the deadline to submit your tax return.
If you feel like you need more time to assess the previous year’s finances, the end of April also sees the deadline for applications for a postponed deadline.
READ MORE: The key Norwegian tax season dates you need to know about
You are able (and meant) to add any student loans from abroad to your tax return
You can add your student loan to your debts and claim the interest as tax-deductible. In fact, you are supposed to declare all overseas assets, received and earned interest, in addition to any debts and loans.
However, this means the debt is visible to Norwegian lenders, which can impact your lending ability.
You can get a rough idea of whether you can expect a rebate or repay tax
After submitting your tax return, you will receive a tax assessment notice. In addition, you’ll receive a notice with information regarding how much money you’ll receive as a rebate or how much you’ll need to repay if you’ve overpaid.
When you receive this will give you a fair idea of whether you can expect money back or if you’ll need to dig into your pockets to pay back any money you owe.
If you receive your tax assessment notice in May, you will likely be due a refund, whereas if you receive it from June onwards, you’ll probably owe the tax man money.
Tax return versus a tax receipt
Most people working in Norway will receive a tax return, which is an outline of your income, deductions, wealth and debt. However, not all people will receive a tax return, and some will receive a tax receipt.
If you participate in the PAYE (Pay as You Earn) scheme, you will not receive a tax return. Instead, you will receive a tax receipt, which shows the amount of tax that you’ve paid in Norway. Those in the PAYE scheme play a flat rate of 25 percent.
One of the key differences is that you cannot claim deductions with a tax receipt. Also, some lenders only accept tax returns rather than receipts when it comes to giving credit. This means those on the PAYE scheme may find it challenging to build a credit history in Norway as their income and earnings are not taken into account.
You are expected to pay tax on your worldwide income
Once you are considered a tax resident of Norway, you generally are required to pay tax on your worldwide income. Tax residency is slightly different to legal residence.
The rules can be a bit complex, and if you are earning an income in two countries, several factors will come into play, such as whether Norway has a tax treaty with those countries and how much you are taxed on that income in other countries.
If you have any questions or queries regarding your tax, it is best to contact The Norwegian Tax Administration or a qualified accountant.
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Keeping track of the key dates
Taxes can be tricky for some, but it can pay to be prepared. Keeping track of this year’s key dates when it comes to tax season can be a huge helping hand.
In Norway, tax returns are usually sent out from March 14th, and most people receive them by the end of March. Then, April 30th will see the deadline to submit your tax return.
If you feel like you need more time to assess the previous year’s finances, the end of April also sees the deadline for applications for a postponed deadline.
READ MORE: The key Norwegian tax season dates you need to know about
You are able (and meant) to add any student loans from abroad to your tax return
You can add your student loan to your debts and claim the interest as tax-deductible. In fact, you are supposed to declare all overseas assets, received and earned interest, in addition to any debts and loans.
However, this means the debt is visible to Norwegian lenders, which can impact your lending ability.
You can get a rough idea of whether you can expect a rebate or repay tax
After submitting your tax return, you will receive a tax assessment notice. In addition, you’ll receive a notice with information regarding how much money you’ll receive as a rebate or how much you’ll need to repay if you’ve overpaid.
When you receive this will give you a fair idea of whether you can expect money back or if you’ll need to dig into your pockets to pay back any money you owe.
If you receive your tax assessment notice in May, you will likely be due a refund, whereas if you receive it from June onwards, you’ll probably owe the tax man money.
Tax return versus a tax receipt
Most people working in Norway will receive a tax return, which is an outline of your income, deductions, wealth and debt. However, not all people will receive a tax return, and some will receive a tax receipt.
If you participate in the PAYE (Pay as You Earn) scheme, you will not receive a tax return. Instead, you will receive a tax receipt, which shows the amount of tax that you’ve paid in Norway. Those in the PAYE scheme play a flat rate of 25 percent.
One of the key differences is that you cannot claim deductions with a tax receipt. Also, some lenders only accept tax returns rather than receipts when it comes to giving credit. This means those on the PAYE scheme may find it challenging to build a credit history in Norway as their income and earnings are not taken into account.
You are expected to pay tax on your worldwide income
Once you are considered a tax resident of Norway, you generally are required to pay tax on your worldwide income. Tax residency is slightly different to legal residence.
The rules can be a bit complex, and if you are earning an income in two countries, several factors will come into play, such as whether Norway has a tax treaty with those countries and how much you are taxed on that income in other countries.
If you have any questions or queries regarding your tax, it is best to contact The Norwegian Tax Administration or a qualified accountant.
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