New tax rules for foreign workers in Norway
The Norwegian Government has proposed simplifying the tax regulations for foreign employees temporarily working in the country.
The proposed rules are as follows:The personal taxation of foreign temporary employees working in Norway is complicated, so the Government has proposed a number of optional simplified tax rules.
- Gross wage income will be taxed at a fixed rate of 25%.
- Taxpayers will not be eligible for any tax deductions.
- The tax will be deducted by the employer and notified and paid to the Norwegian tax authority.
- Taxpayers under this arrangement will not be required to provide tax returns for income tax.
- This regime will not be available to anyone with an income above income level three (NOK 962.050) or those who receive income from business operations.
The proposed regulations, which are due to come into effect at the start of 2019, will be optional and taxpayers will be able to choose between adopting them or being taxed using the ordinary tax rules.
The Government also proposes to abolish the existing ‘special allowance for foreign workers’ for everyone except offshore employees and foreign seamen. They will continue to be able to receive this deduction as they are not included in the proposed regulations.