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Norway's tax laws

Norway’s Tax Laws

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Income Tax: inntektsskatt

Wealth Tax: formuesskatt
Direct Taxes: direkte skatter
Indirect Tax: indirekte skatt
Chief County Tax Inspector: Fylkesskattesjefen
Local Taxation Office: ligningskontor
Compiled by Norway citizen, Kel Hansen

Do the Math

Income Tax:Flat rate of 28% on net income. 9% surtax is charged on gross income if you earn between the equivalent of $73,641 - $119,662 USD, and 12% surtax is charged on the additional amount in the instance you earn anything over that. Taxpayers are required to contribute to social security derived from whatever they make over $6,612 USD. 7.8% of any salary made over this amount goes towards social security contributions. Pension income is 3.0%.

Value Added Tax (VAT): Charged on the sale of most goods and services in the country. The common rate is 25%. A reduced rate of 14% applies to the sale of food and drink. Hotel lodging, cinema shows, sports events, concerts, public transportation services, the sale of books and audio books and broadcasting charges are exempt from VAT charges. (http://www.culturalpolicies.net/web/norway.php?aid=515)

Wealth Tax: Tax on their net “worldwide assets.” There is an exemption of up to the equivalent of $78,483 USD, with any amount over that being subjected to a 1.1% wealth tax. To figure out the amount you would pay, take the total value of your assets and subtract any liabilities. There is an exemption up to 470,000 NOK- any amount over that, and you are paying a 1.1% wealth tax.

Property Tax: Municipalities have the authority and choice to enforce a property tax of between 0.2-0.7% on the total "fiscal value of the property". Not all Norwegian municipalities choose to levy this tax.

Death/Inheritance Tax: Children, foster children and parents of the deceased pay a progressive rate for an inheritance or death tax. Here are the USD equivalents:

First $78,483 - Nothing
Next $55,105 - 6%
Anything over $133,589 - 10%

"All other beneficiaries" pay this rate:

First $78,483 - Nothing
Next 55,105 - 8%
Anything over $55,105 - 15%

Tax Facts Norway 2009: A survey of the Norwegian Tax System

http://www.davemanuel.com/2009/09/08/the-norwegian-tax-system/

Fun Fact

According to Forbes magazine, Oslo, Norway is the 14th most expensive city in the world to live in, just behind Paris and Milan. As a whole, Norway is one of the most expensive countries in the world to live in, according to various cost of living indexes.

Acts in Legislation Regarding Taxes

Act relating to value added tax 1969
Customs Act 1966
Lottery Act 1995
The Petroleum Taxation Act
VAT Act (Norwegian)
Details can be found at http://www.lexadin.nl/wlg/legis/nofr/eur/lxwenoo.htm

Bang for Your Buck The Norwegian tax system is based on the principle that everybody should pay tax according to theirmeans and receive services according to their needs. Taxes are designed to contribute to greater equality between individuals. Taxes are used to fund the following public services: