Norway applies the highest income tax in the world and it belongs to the so-called “Scandinavian system”, namely a dual income tax system. This means that your wage and pension income is taxed on a progressive base, while your capitals (your house, or your interests, also from abroad) are taxed with a flat rate.
If you are deemed as a resident in Norway, you will be taxed on your worldwide income; on the other hand non-residents (those who spend less than 183 consecutive days in the country) will only pay taxes on the income earned in Norway.
If you have just arrived in Norway, you must ask for a National identity number (NIN), a unique number used by legal authorities for a range of purposes, including pay taxes. In case you are set to work in Norway for less than 6 months, you will be assigned a D-number.
Every employee or self-employed will need this digit to retrieve a tax deduction card or an exemption card, is an electronic document which shows how much tax has to be deducted from the gross salary; this amount is named tax deduction or withholding tax. If you think you will earn NOK 55,000 or less, you can order an exemption card and your employer will not deduct the tax.
Norway’s tax year starts on the 1st of January and ends on the 31st of December. The system works on a preventive way: starting from the 4th of April you receive a tax return, namely the Selvangivelse form, that resumes your income, the tax you paid and, eventually, the debt you have from the previous year. In case of debt, our suggestion is to recalculate how much you owe to the Norwegian government and be sure there was no mistake in their calculation.
So, once you receive your Selvangivelse, you should check all your info in it and all the tax deductions applied to your case; then finally, you must send it back by the 30th of April. In case you overpaid your tax, you can claim a tax refund. If you think you cannot send the document before that date, it is possible to have an extension of up to 1 month (so up to the end of May) but you will still need to apply for it before the end of April.
The Norwegian tax administration allows you to apply for a refund up to 3 years back from the end of filing tax return period, that is on the 30th of April 2018. This means that if you applied before this deadline, you will have your tax refund for the tax year 2015.
It is really important to check and file your tax return in the right way. First of all pay attention to your marital status, your household, your total income during the year, your childcare allowance because it may be extended in some cases. Norway allows special deductions for foreigners, and in case you are a sea-worker, working at least for 130 days in the sea during the tax year, you are entitled to a special tax regime.
Once you send back your tax return, you will receive a tax assessment starting from the 27th of June. It will assert if you owe money to Norway or whether Norway owes you a tax refund. Still, if you are not sure about how much tax you paid in your tax assessment, you can claim a review of your financial status, but it will take more than 4 months.
A lot of people give up before they start to apply, but you are still on time. You can apply with Dendax and be sure you will have your money back easy and soon. Use Dendax Online Calculator to get an immediate esteem of your tax refund: it’s free, fast and tested!