Expatriate tax ebook - Norway

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
In order to work in Norway most foreign citizens require a work permit. The permit must be granted before entering the country. In certain cases, it may also be necessary to apply for a visa in order to enter Norway.

Employment visas
A work permit is not required for nationals from EEA countries who stay in Norway for up to three months, work in Norway for up to three months, work in Norway but commute to another EEA country at least once a week.

EEA nationals who are seeking employment in Norway may reside in Norway for six months without a permit. In most cases, if an individual is staying in the country for longer than three months, they must apply for a residence permit.

Special rules apply for employees from Bulgaria and Romania.

Further information about work and residence permits is available in Norwegian, English, German and French from the Directorate of Immigration at: www.udi.no

Tax year
The Norwegian tax year runs from 1 January to 31 December.

Tax returns and compliance
The tax return deadline for employees is 30 April following the end of the tax year concerned. Everyone who has a taxable income or taxable assets must submit a tax return. The obligation to submit a tax return applies regardless of whether you have full or limited tax liability.

Income tax rates - 2011
Tax is imposed on:

• ordinary/net income, (includes taxable income from all sources), and
• personal income/gross income, (includes employment income and pensions).
  

Sample income tax calculation

• Empoyment income NOK 1,000,000
• Other net income NOK 10,000
• Net wealth NOK 1,000,000

National Insurance, employee contribution (7,8%) NOK 78,000

Top tax first 471,200

9% next 294,600; 26,514

12% next 234,200; 28,104

Total top tax NOK 54,618

Basis for municipal tax

Income NOK 1,010,000

Standard deduction NOK (40,000)

Minimum deduction NOK (75,150)

Personal allowance NOK (43,600)

Income for taxation NOK 851,250

Municipal tax (28%) NOK 238,350

Wealth tax

First 700,000 NOK 0

1,1% next 300,000; NOK 3,300

Total wealth tax NOK 3,300

Tax bill NOK 374,268

Information about Norway: