General tax conventions (Gov't.no)
- Taxes most likely to affect an international researcher staying and/or working in Norway are income tax, wealth tax, and value added tax (VAT). Income and wealth are levied as direct taxes by the state, county, and municipality, value added tax is an indirect tax by the state. Since 2014, Norway no longer levies a tax on inheritances and lifetime gifts (avgift på arv og visse gaver).
- An international researcher's tax status in Norway depends on personal circumstances and possibly on the provisions of a tax treaty between Norway and the country in which the researcher is or was a resident before arriving.
- The extent to which an individual is subject to direct taxation in Norway depends primarily on the individual's residence status according to Norwegian tax law. A tax-resident individual is subject to tax in Norway on his or her worldwide income and capital. A non-tax-resident is liable to tax on certain Norwegian-source income only, e.g. from employment exercised in Norway and income from real and personal property situated in Norway. As of 2014, no gift and inheritance taxes are levied in Norway anymore.
- An individual is deemed to be tax-resident in Norway if he or she stays in Norway for more than 183 days in any 12-month period (each day counts), or more than 270 days in any 36-month period. The individual will be regarded as resident from the calendar year when the aggregate stay exceeds 183/270 days.
- The fiscal year is the calendar year.
- Figures and rates quoted on this page refer to the income year 2017, i.e. the tax return due in 2018.
Who must pay income tax in Norway?
Anyone who receives a salary from a Norwegian institution is taxable in Norway.
- Guest lecturers whose stay in Norway does not exceed one day, are usually not taxed.
- International employees working or partly working in another country than Norway, must apply for a tax clarification due to Norwegian tax agreements with other countries.
- Some countries have specific tax agreements with Norway, if your country does, contact NIH.
How is income tax calculated?
Calculating income taxes is not a simple matter. A rough estimate may be derived from the following basic information:
- The point of departure is an individual's gross income which includes all payments from the employer, i.e. wages, salary for off-duty periods, vacation pay, bonuses and certain payments in kind.
Tax deduction card
- Employers in Norway are obliged to deduct taxes from wages before employees are paid.
- Prior to or upon starting work at NIH, international employees must apply for a tax deduction card from the local tax office. The tax deduction details can then be accessed online by the NIH Payroll Office. The tax deduction card states what percentage of the income the employer must deduct.
- If work is started without a tax card, UiO is obliged to deduct 50% taxes from your salary which is generally more than would be deducted otherwise. The balance will be reimbursed once your tax deduction card has been issued by the Norwegian Tax Authorities. Note however, that this may take up to several months.
- Check how you obtain a tax deduction card upon arrival in Norway
- Settlement of income and wealth taxes is finalized by means of a tax return (skattemelding).
- The tax return is due by 30 April the year following the income year.
- Tax-liable individuals staying in Norway for a maximum of 183 days, may request an advance tax assessment from the local tax Office.
- Wealth tax (formuesskatt) is charged on the net wealth of an individual per 1 January every year.
- Resident individuals are liable on their world-wide wealth; non-residents on their Norwegian-situated assets only.
- The wealth tax rate is 0% of up to NOK 1.400.000, and 0,85% of the exceeding amount.
Value added tax (VAT)
- Value added tax is a general tax levied on sales (i.e. goods and services) within the country and on imports.
- The standard VAT rate is 25% of the net price.
- Reduced rates apply to certain sales, notably to food (15%) and to passenger transport, accommodation services, travel agents and cinema tickets (10%).
Assistance in tax matters
- For matters concerning tax deduction card, tax return, tax assessment and tax settlement the Oslo Tax Office or the Service Centre for Foreign Workers should be contacted directly.
- Independant opinion and comprehensive tax assistance may be obtained from the Norwegian Taxpayers Association. For contact information on taxpayer associations and tax experts in countries around the world, consult the website of the World Taxpayers Association (worldtaxpayers.org).