Taxation
General income (Alminnelig inntekt)
General income is the sum of all taxable pay, income from self-employment and capital income less standard deductions and certain expenses with the exception of special deductions. Normal deductions are the minimum standard deduction (minstefradrag), deductions for travel between home and the workplace, child-care deduction and interest on debts.
Advance tax (Forskuddsskatt)
Self-employed persons pay tax in advance four times a year. These advance tax payments are calculated on the basis of expected income. Some wage-earners and pensioners with low income and high wealth or capital income also make advance tax payments in addition to tax deductions from pay or pension. Capital income includes income from interest and property rental. In the case of wage-earners and pensioners who pay advance tax, the amount is printed on the tax deduction card.
Payroll tax, also known as Employer’s contribution (Arbeidsgiveravgift)
Employer’s contribution is paid by employers to the National Insurance scheme. It is calculated on the basis of gross pay and allowances.
Tax on gross income (Bruttoskatt)
The tax on gross income comprises surtax and National Insurance contributions, and is calculated on personal income.
Property tax (Eiendomsskatt)
A municipal tax on different types of property. The municipality itself decides according to specific rules whether or not to impose property tax and the size of the tax.
Wealth tax (Formuesskatt)
Wealth tax is charged on net wealth. Gross wealth includes cash, bank deposits, shares, fixed assets, private cars, assessed value of real property, etc. Net wealth is equal to gross wealth less debt. A certain proportion of wealth is tax-free. Wealth tax is divided between the municipality and the state.
Tax certificate (Likningsattest)
The tax certificate accompanies the tax settlement notice. It shows general income and wealth, tax class and personal identity number. In the case of married persons, it also shows the spouse’s general income, wealth, tax class and personal identity number.
Certificate of pay and tax deducted (Lønns- og trekkoppgave)
The certificate of pay and tax deducted is filled in by the employer. It shows what the employee has received in pay and other allowances, such as subsistence allowance, company car, etc. during the course of the year. It also shows the total amount of payroll withholding tax deducted. The certificate of pay and tax deducted shall be sent to the tax authorities by the employer or remitter of pension or benefit by 20 January of the year following the income year with a copy to the employee or recipient of pension or benefit.
Value-added tax (VAT) (Merverdiavgift or moms)
VAT is an indirect tax on most goods and services.
Net tax (Nettoskatt)
Tax charged on general income. Net tax includes tax to the municipality and county as well as national income tax to the state.
VAT return (Omsetningsoppgave)
Statement sent to the tax authority (data input centre) by a business enterprise or self-employed person liable for VAT showing the amount of VAT to be paid to or refunded by the state. VAT returns can be delivered electronically via the Internet. VAT returns are dealt with by the county tax assessment offices.
Pension points (Pensjonspoeng)
The pension points are awarded as a function of the income defined as the basis for calculation of future pension. This means that not all of the general income serves as basis for the calculation.
Persons from 17 to 69 years of age may have income as mentioned above, based on employment or self-employment. The number of pension points decides the amount of additional pension received from the National Insurance Scheme.
Personal income (Personinntekt)
Personal income may consist of pay, pensions and/or personal income from active participation in business activities. National Insurance contributions and surtax are calculated in relation to personal income.
Surtax (Toppskatt)
A national income tax charged on personal income exceeding a certain amount.
National Insurance contributions (Trygdeavgift)
The contributions to the financing of the National Insurance scheme are calculated on the basis of personal income. Different rates apply for pensions, pay, and personal income from self-employment.