Simple tax scheme for foreigners

This article is for you if you are a foreigner in Norway, it is your first year working here, and you earn 651,250 NOK a year or LESS. If you earn more than this amount, please skip this article, the information below will not benefit you.

 

If you do not know much about taxes, there is some good news for you. There is a simplified tax-scheme for you during your first year of working in Norway! The scheme is called PAYE (Pay-As-You-Earn).

 

What’s in it for you?

 

  • flat rate of 25% tax. If you are younger than 17 or older than 69 - the tax rate is 21.9%
  • your Employer deducts this from your salary and you do not have to do anything
  • no paperwork, no need to deal with tax return forms, everything is kept simple. You are deducted 25% in taxes and you are all set with Tax Authorities. They will never get back to you stating that you have underpaid your tax and they will not send you the invoices to compensate for the difference
  • If you think that you are paying more taxes under PAYE scheme compared to the general scheme, you can always opt out of PAYE-scheme and change to general one. 
  • If it turns out that your tax is less under the general scheme, you can apply for a refund by submitting a request of amendment here. You can claim a refund for up to 3 years after you used the PAYE scheme.

 

How to get the PAYE scheme:

 

  • you get it when you apply for your tax card the first time. There will be a field in the form asking you if you would like to have a PAYE scheme. It is very important that you choose this straight away because if you choose the general tax at ANY POINT, you can never switch to PAYE later.

 

Criteria for joining:

 

  • you are a foreigner working in Norway
  • it is your first year of working here
  • the scheme can also be applied to workers working short-term in Norway. By “short term” here means ANY period of time up to 12 months.
  • your income is NOT higher than 651,250 NOK a year in 2021

 

Any questions or comments, please let me know - here