Tax seminar 15.03.2019 ItaT Italiani a Trondheim / Italienere i - - PowerPoint PPT Presentation

Tax seminar – 15.03.2019

ItaT – Italiani a Trondheim / Italienere i Trondheim

Bjørn Naustan & Per M. R. Hanger, Norwegian Tax Administration / Skatteetaten

Outline

• Taxation in Norway – your obligations and rights
• The Tax Return
• Income tax - Rates
• Tax residency in Norway
• Deductions
• Tax Assessment Notice

15.03.2019

PUBL PUBLIC IC INCOMES INCOMES AND AND EXP EXPENSES ENSES

Helse

• g sykehus /

Healthcare and hospital 17,1% Næringsutvikling 10,4% Forsvar 3,2% Politi og brannvesen 2,3% Miljøvern 1,8% Pensjoner og støtteordninger / Pensions and benefits (NAV) 40,5% Boliger 1,6% Utdanning / Education 11,2% Fritid, kultur

• g religion

3,0% Alminnelig offentlig tjenesteyting 7,1% Bistand 1,8%

Other incomes 206 mrd Oil Industry 223 mrd Value Added Tax and other taxes 421 mrd Wealth tax 15 mrd Taxes from work 759 mrd

INV INVEST ESTED ED IN IN A 19 A 19-YEAR YEAR OLD OLD

Barnetrygden

(kr 1 054 x 12 x 18)

225 000,- 725 000,- 1 100 000,- 510 000,-

Kindergarten (kr 145 000 x 5) Primary school

(kr 110 000x 10)

Secondary school

(kr 170.000x 3)

The taxpayers obligations in Norway

• Give information about income,

capital and deductions to the tax authorities

• The information is given in the

Tax Return.

• Everyone has an obligation to

ensure that the information in the Tax Return is correct.

15.03.2019

Prefilled – not necessarily completed!

• You must check your Tax Return and

make necessary corrections.

• No changes -> don’t submit!
• 2. april 2019

Tax Return 2018

• The tax authorities receive information from employers, banks and others. This

information will be listed in the Tax Return.

• The Tax Return contains a suggestion from the tax authorities. It is sent out from

the tax authorities April 4th. The deadline for sending it to the Tax Office is April 30th.

• 2. april 2019

Norwegian tax system – income tax

The tax on net income:

• 23% on ordinary income (gross income – deductions)

Social security tax:

• 8,2 % on gross income (salary)

Bracket tax:

• none on gross employment income under NOK 169 000
• 1,4% on gross employment income between NOK 169 000 and NOK 237 900
• 3,3% on gross employment income between NOK 237 900 and NOK 598 050
• 12,4% on gross employment income between NOK 598 050 and 962 050
• 15,4% on gross employment income exceeding NOK 962 050
• 2. april 2019

Tax settlement notice

The tax settlement contains information about:

• Basis for your tax calculation
• How much tax your employer has deducted
• Overpaid or underpaid tax
• 2. april 2019

Wealth tax

Single:

• None on net capital up to NOK 1 480 000
• 0,85% on net capital exceeding NOK 1 480 000

Married couple taxed together:

• None on net capital up to NOK 2 960 000
• 0,85% on net capital exceeding NOK 2 960 000
• 2. april 2019

Tax residency in Norway according to Norwegian internal tax law

Conditions:

• stay in Norway for one or several periods, in total

exceeding 183 days in any 12-month period OR

• stay in Norway for one or several periods, in total

exceeding 270 days in any 36-month period You are resident in Norway from January 1st of the income year in which the stay exceeds one of these limits (but never resident before you arrive!)

• 2. april 2019

The extent of Norwegian tax liability for residents

• Liable to Norwegian tax on worldwide income and capital
• Norway’s right to tax resident’s worldwide

income and capital, might be limited by a tax treaty with the resident’s home country.

• 2. april 2019

Tax treaty between Norway and Italy

• The convention is published on the Norwegian Government’s web pages

(regjeringen.no)

• Resident for tax purposes (Fiscal domicile) in Norway or Italy? See the

convention article 4

• How about residents in Norway owning fixed property in Italy?
• 2. april 2019

House or vacation home in Italy?

• No wealth tax in Norway
• No Norwegian income tax from renting out your own house or vacation

home in Italy

• No deduction for debt in Norway in connection with such property
• BUT: The interest on such debt is DEDUCTIBLE in Norway, as long as

deduction is NOT claimed in income taxed in Italy

• 2. april 2019

Reduction of income tax on wages for work performed in Italy

• skatteetaten.no/rf1150
• 2. april 2019

Deductions – an overview

Common deductions:

• Minimum deduction (minstefradrag)
• Personal allowance
• Child-care deduction
• Interest on debt
• Travel to/from work
• Deductions for extra expenses incurred in connection with stays away from

home: Board, lodging and home visits

• 10% standard deduction for foreign employees and the relation to other

deductions

• 2. april 2019

Deduction guide – «The deduction wizard»

• skatteetaten.no/fradragsveileder
• 2. april 2019

Items in the tax return

• skatteetaten.no/finditem
• 2. april 2019

Contact information

15.03.2019

General guidance online: skatteetaten.no