How to calculate Tax in Norway | Save Money+Simplest Method Ever | Norwegian Tax Guide| Check return

[@Maddys230]

Awesome info brother

[@ErRaginitripathi]

👍

[@vivekkrishna1092]

Great Video! What happens when you opt out of PAYE scheme in middle of the year due to job change and your salary increases? Do you need to pay higher tax% and the new tax gets calculated from start of the financial year and not from the month when you opt out of PAYE scheme? Thanks in advance.

[@ErRaginitripathi]

@vivekkrishna1092 When you opt out of PAYE scheme you comes under general tax rule and the tax will be calculated on all your income of that financial year.

[@Ivvlozano]

Hello! Great video! I would like to ask you something about that! When you put the expected imcome on the calculator, this takes 12 months to calculate taxes you have to pay? Because I started to work on june and I will be here till december. So i will work just 6 or 7 months, no 12. But calculator says "salary income for the whole year". I have understood that with general system is not the same tax if you work 3, 6 or 12 months. How can I to calculate my taxes this year for 6 months with the general scheme? Thank you!

[@ErRaginitripathi]

Hi, If you are going to work only few months in Norway there is someting called PAYE (Pay As You Earn) Scheme. Most workers who are new in Norway will automatically become part of a voluntary tax scheme called PAYE when they apply for a tax deduction card. Under this scheme, you’re taxed at a fixed percentage that your employer deducts from your salary. NOTE: Once you opt for general scheme you can not chose this PAYE scheme, so be careful. If you’re part of the PAYE scheme, your tax is completed after your salary has been paid to you. You do not submit a tax return, nor do you receive a tax assessment notice. Instead, you’ll receive a receipt for PAYE tax, which shows how much salary and tax your employer has reported to the Tax Administration for the work you did last year. How to become part of the PAYE scheme: Everyone who works in Norway must have a tax deduction card. As a foreign worker in Norway, you can choose between two ways of paying tax. When you apply for a tax deduction card, you’ll either pay tax under the PAYE scheme or under the general tax rules. Most foreign workers automatically become part of the PAYE scheme if they have short work stays in Norway, or if it’s their first year living in Norway. You can opt out of the PAYE scheme and pay tax under the general tax rules if that’s more profitable for you. You can opt out when you apply for a tax deduction card, or later in the income year by changing your tax deduction card. If your employer applies for a tax deduction card for you, he or she cannot opt out of the PAYE scheme on your behalf. You can opt out in writing during your appointment for ID check. If you’re going to live in Norway, you must pay tax under the general tax rules after one year. If you’re not living in Norway, but travelling to Norway for temporary work assignments, you’ll become part of the PAYE scheme every time you apply for a tax deduction card. If you live abroad and receive director’s fees from Norwegian companies, you can also be part of the PAYE scheme. The difference between the PAYE scheme and the general taxation rules: General tax in Norway is calculated according to a tax rate that varies based on how much you earn during the year. The tax rate is adjusted according to your income and deductions. If you earn less, you pay less tax, and if you earn more, you pay more tax. If you pay tax under the general rules, you’ll get a tax return the year after you’ve worked. The tax return is, amongst other things, a summary of your income. In your tax return, you can claim deductions for expenses you’ve had in connection with your work in Norway. After you’ve received your tax return, you’ll receive a tax assessment notice. The tax assessment notice will show whether you’ve paid too much or too little tax. If you’ve paid too little tax, you must pay what you owe. If you’ve paid too much tax, you’ll receive a refund into your bank account. If you’re in the PAYE scheme, you’re taxed at a fixed percentage every month, no matter how much or little you earn. You’ll receive a tax receipt in August that shows how much salary and tax your employer has reported to the Tax Administration for the work you did last year.

[@ferastayyeb8812]

Great video thanks! I have a question on limited tax liability for when you live in Norway less than 183 days, what is the tax percentage in this case? Also, is income earned from a Norwegian employer whilst working abroad remotely before obtaining the residence permit, taxable?

[@ErRaginitripathi]

Hi Feras, On limited tax liability, there is a PAYE(Pay As You Earn) scheme, for which the tax will be deducted by flat 25%. But this depends on certain cap limit. For more info plese follow below link: www.skatteetaten.no/en/person/taxes/get-the-taxes-right/abroad/tax-residence-in-norway-when-moving-to-or-from-norway/ Also, regarding working remotly, I would say it is better to check with employer as correct table tax slab needed for correct tax calculation. However the tax will be much higher if you work outside than in Norway. There are other many factors which affects this like if you are working from Other Nordic countries / EU zone or other countries.