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

15.03.2019 Outline • Taxation in Norway – your obligations and rights • The Tax Return • Income tax - Rates • Tax residency in Norway • Deductions • Tax Assessment Notice

PUBL PUBLIC IC INCOMES INCOMES AND AND EXP EXPENSES ENSES Politi og Alminnelig offentlig Bistand Miljøvern brannvesen tjenesteyting 7,1% 1,8% 1,8% Næringsutvikling 2,3% 10,4% Forsvar Pensjoner og støtteordninger / 3,2% Pensions and benefits (NAV) 40,5% Utdanning / Education Helse 11,2% og sykehus / Fritid, kultur Healthcare and og religion Boliger hospital 3,0% 1,6% 17,1% Value Added Tax Oil Industry Other incomes Wealth tax Taxes from work and other taxes 223 mrd 206 mrd 421 mrd 15 mrd 759 mrd

INV INVEST ESTED ED IN IN A 19 A 19-YEAR YEAR OLD OLD 510 000,- 1 100 000,- 725 000,- 225 000,- Barnetrygden Kindergarten Primary school Secondary school (kr 1 054 x 12 x 18) ( kr 145 000 x 5) (kr 110 000x 10) (kr 170.000x 3)

15.03.2019 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.

2. april 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 4 th . The deadline for sending it to the Tax Office is April 30 th .

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

15.03.2019 General guidance online: skatteetaten.no Contact information