Are you working in Norway or on the Norwegian continental shelf? Then you are liable to submit an individual income tax return to the Norwegian tax administration by 30 April.
What is the individual income tax return (IIT)?
The tax return provides an overview of your income, deductions, wealth and debts.
If your registration with the tax authorities is correct and your company has submitted accurate information, the Norwegian Tax Administration sends you an individual income tax return 4 April 2017. It is your responsibility, as an employee, to review and verify the information in the tax return.
If the information is correct and no changes are needed, you do not need to submit the tax return. The tax authorities considers no action, as acceptance. However, for foreigners working in Norway there are many deductions to consider and expenses to include, so it is advisable to take a close look at your income tax return and seek guidance if you are uncertain about the reporting.
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Check these posts in your individual income tax return (IIT)
The Norwegian tax system is constantly changing and it is easy to do mistakes that may cost you a lot of money. The most common deductions and situations that can lead to miscalculation of your Norwegian tax are:
- Commuting expenses
- Child care expenses
- Interest paid on mortgages, credit card debts or loans
- Seaman’s deduction
- Norwegian National Insurance Scheme contribution
- Tax classes
- Payment during sick leave
- Former residency in Norway
- Tax paid abroad on income earned outside of Norway
Electronic assessment of the individual income tax (IIT)
The Norwegian tax administration aims towards making the tax system fully electronically. To achieve this goal there will be less room for personal service and management related to the tax assessment process. The electronic system relies on accurate and complete information in order to end up at the correct assessed tax.
A few years ago a clerk at the tax office may have a look at your tax return and think; “This person is entitled to an extra deduction” or “some income is missing, I’ll just put it in there because the tax payer most likely forgot about it”.
This is no longer the situation. Now all information is crosschecked electronically. If there are discrepancies between information given in your individual income tax return compared to the information held by the tax administration, you will receive a letter asking you to provide more information and a notification of a possible fine for submitting wrong or deficient information.
To conclude, not having enough knowledge about the Norwegian tax system could cost you a lot of money either by losing out of deductions or if you are fined for not giving the correct information.