Guide to the Norwegian Administration Content Introduction

Introduction page 1 In this booklet you will find infor- The Norwegian tax Administration page 4 mation on how the Tax Population registration page 8 Administration is organized and Tax and assessment page 8 on its most important spheres of Appeal boards and right of appeal page 9 responsibility. VAT page 10 page 11 Collectiom of Vat page 11 Glossary page 12 Important dates in the history of taxation page 14 Introduction page 1

2 3 Ministry of Finance

Directorate of

Directorate of Taxes

Director General of taxation

Stab: •Information Unit •Internal Audit Unit •Unit for Analysis of Developments in Law •Unit for Compliance and E conomic Cr ime

Director of Division

Office of the Director

Assessment Collection Division Division

Departmen t of Departmen t of Personal Taxation Departmen t of Departmen t Departmen t IT- Planning and and Popula tion Business Taxation of Collec tion of Organiza tional Departmen t Dev elopment Registration Services

Cou nty tax Petroleum Cou nty offic es Tax Office Col lection offices

Central Tax Office for Large Enterprises Local tax assessment offic es Central Office for Local Tax For eign Tax Affairs collection offices

Oslo Tax Assessment O ffice The Norwegian Tax Administration

The overall goal of the Tax tax limitation, tax deductions, assessment appeal board. Administration is to ensure that rates for late delivery penalties, The local tax assessment office is taxes are correctly assessed and rates and basis for any additio- responsible for population regi- collected. At the same time, the nal tax, etc. stration. The Population Register Tax Administration is responsible assess taxes provides the basis for update of for maintaining a correct and up- calculate tax settlements, sho- the tax assessment registers and to-date National Population wing overpaid or underpaid other state and municipal regis- Register. The Tax Administration tax and National insurance ters in the municipalities served administers three major systems: contributions by the local tax assessment office. the population register system, assess and collect VAT, inheri- the taxation system and the VAT tance tax and a number of les- The population registration system. In addition to this, the ser taxes and charges responsibilities of the local tax Tax Administration administers manage population registration assessment office include: the somewhat smaller inheritance issue tax deduction cards deciding home addresses tax system. supervise collection of taxes, deciding in the first instance National Insurance contributi- on cases concerning names The result of this work is of consi- ons and employer’s contributi- issuing birth certificates derable value to society. More ons by the local tax collection considering applications for than 80 per cent of the total state offices. disclosure of information from and municipal taxes are collected the population register by means of the taxation systems The local tax assessment offices administered by the Tax At the local level, the Tax Svalbard has its own tax assess- Administration. Administration is represented by ment office, which is also respon- the local tax assessment offices. sible for the population register The Tax Administration is a sub- Each of the 99 local tax assess- for Svalbard. Special rules apply ordinate agency of the Ministry of ment offices serves one or more of to deduction of for Finance and comprises the ’s 435 municipalities. residents of Svalbard. Svalbard Directorate of Taxes, 19 county Each local tax assessment office is Tax Assessment Office also asses- tax assessment offices, the headed by a Chief Assessment ses coal tax. Central Tax Office for Large Officer, who is also the Chief Enterprises, the Central Office for Registrar. The central tax offices Foreign Tax Affairs and the The central tax offices assess spe- Petroleum Tax Office. Altogether, The main responsibility of the cific industrial sectors and/or the Tax Administration has over local tax assessment offices invol- groups of taxpayers. There are 6000 employees. Most of them ves controlling the basis of the three central tax offices. work at the local tax assessment information provided in tax offices. returns and enclosures delivered The Petroleum Tax Office by tax payers as well as state- The Petroleum Tax Office asses- The main responsibilities of the ments and other information sub- ses petroleum producers and pipe- Tax Administration: mitted by third parties. Taxable line companies on the Norwegian control the basis of tax returns income and wealth is determined continental shelf. In addition to and other statements received on the basis of these controls and ordinary taxes, these companies from taxpayers and third parties tax is assessed. are subject to a special national determine tax class, wealth, tax pursuant to the Petroleum general income, personal inco- The local tax assessment office Taxation Act. The assessments me, special deductions, any prepares cases for the assessment proposed by the Petroleum Tax deficits to be carried forward, appeal board and the higher Office are considered by the

4 5 Petroleum Tax Board. The Petrol office in each of Norway’s 19 coun- reports and calculate additional eum Tax Office is located in Oslo. ties, headed by a Chief County charges when the person liable Assessment Officer. has been given an opportunity to The Central Office for Foreign Tax state his or her views. The county Affairs The main responsibilities of the tax assessment offices provide The Central Office for Foreign county tax assessment offices: guidance to business enterprises Tax Affairs assesses foreign providing assistance, guidance and self-employed persons concer- undertakings and foreign workers and information on tax mat- ning the Act relating to value- without permanent ties to ters to the local tax assess- added tax, prepare cases for the Norway and foreign undertakings ment offices and supervising National VAT Appeal Board and and workers engaged in building their activities. Coordinating prepare or consider applications and construction or on the and performing assessment for remission or reduction of VAT, Norwegian continental shelf. The controls in relation to taxpay- interest and additional charges office is responsible for clarifying ers. under the fairness provisions. foreigners’ tax situation in processing and auditing VAT Applications for remission of VAT Norway. Foreign seamen working within the county. over a certain amount are decided on board Norwegian registered considering appeals in popula- by the Directorate of Taxes. vessels are assessed by the office, tion register cases concerning as are foreign performing artists change of address and applica- Tax audit while working in Norway. The tions for change of date of birth. The county tax assessment offices office administers the Nordic trea- perform tax audits, on-site audits ty on payment and transfer of tax. The county tax assessment offices and other audit measures in rela- In this connection, it keeps a prepare cases for the county tax tion to business enterprises and register of the tax payments of appeal board, issue local valuati- self-employed persons and prepa- employees from the other Nordic on rules and, if necessary, bring re tax audit reports. If errors are countries and is responsible for decisions by the higher assessment revealed, this may result in addi- transferring taxes between Norway appeal board before the county tional charges, which may be and the other . tax appeal board for review. imposed regardless of whether The office is located in Sandnes. the error was made through negli- The offices also perform tax gence or was deliberate. Changes The Central Tax Office for Large audits of the returns and accounts in tax assessments owing to Enterprises of self-employed persons. errors revealed by tax audits are The Central Tax Office for Large made by the local tax assessment Enterprises is responsible for the VAT office and are finally approved by assessment and control of large The county tax assessment offices the assessment appeal board. taxpayers including companies are responsible for registering Guidance of business enterprises which either have a high annual and maintaining the VAT and self-employed persons in con- turnover, are engaged in activities Register in cooperation with the nection with audit measures is in many municipalities, have sub- Central Coordinating Register of provided by the county tax assess- stantial ties abroad or are organi- Legal Entities at Brønnøysund. ment offices. zed as a group of companies. The They also deal with VAT returns, office also assesses shipping com- including cases where VAT is The county tax collection offices panies and calculates tonnage refunded by the state, and assess There is one county tax collection duties. The office is located in Moss. VAT provisionally when VAT office in each county with the returns are not received or are exception of Oslo and Akershus, The county tax assessment offices incorrect. The county tax assess- which share an office. The county There is a county tax assessment ment offices review tax audit tax collection offices are headed

by a County Tax Collector. Assessment Division legal rules and systems adminis- The county tax collection offices The Assessment Division is head- tration within its field, and has have responsibility for collection ed by a Director of Division. The regulatory authority in the areas of VAT and a number of lesser Assessment Division has three of taxation, assessment and popu- state taxes as well as assessment departments: the Department of lation registration. In addition, and collection of inheritance tax. Personal Taxation and Population the department assists the The county tax collection offices Registration, the Department of Ministry of Finance with drafting also supervise and provide gui- Business Taxation and the of legislation. dance for tax collection at the Department of Planning and local level. The county tax collecti- Development. The county tax The Department of on offices also play a major role in assessment offices, the Central Business Taxation control activities in the county in Tax Office for Large Enterprises, The department has responsibili- cooperation with the county tax the Central Office for Foreign Tax ty for direct taxation, VAT, tax assessment office and local tax Affairs, the Petroleum Tax Office audit and data quality. The assessment and collection offices. and Oslo Tax Assessment Office department has the authority to This applies particularly to con- report to the Director of Division. provide advance rulings within trol of employers. The Assessment Division is has the scope of the Taxation Act, as overall responsibility for agency well as in relation to employer’s The Directorate of Taxes management, administration of contributions and VAT. The The Directorate of Taxes lies legal rules and taxation systems department prepares cases for the under the Ministry of Finance and administration, population regi- National Tax Appeal Board and is responsible for the central tech- stration and control activities. the National VAT Appeal Board nical and administrative manage- This includes administration of within its own field. The depart- ment of the county tax assessment legal rules within certain areas of ment enforces offices, the county tax collection the Accounting Act. The Assessment conventions with other countries offices, the Central Tax Office for Division cooperates with and and deals with international mat- Large Enterprises, the Central assists the Ministry of Finance ters. The department is respons- Office for Foreign Tax Affairs, the with drafting of legislation. ible for administration of legal Petroleum Tax Office and Oslo Tax rules, operational audits and sys- Assessment Office. The The Department of Personal tems administration within its Directorate of Taxes is headed by Taxation and Population sphere of operations. This inclu- the Director General of Taxation. Registration des parts of the Accounting Act. The department’s responsibilities In addition, the department The Directorate of Taxes is divi- include advance tax, personal assists the Ministry of Finance ded into an Assessment Division taxation (except direct taxation with drafting of legislation. with three departments, a and foreign tax affairs), employer’s Collection Division with one contribution, assessment adminis- The Department of Planning department, the Administration tration rules and population regi- and Development Department and the IT Depart- stration. The department has the The Department of Planning and ment. In addition, the Directorate authority to provide advance Development assists the Tax has four units placed directly rulings within the scope of the Administration in achieving high under the Director General of Taxation Act and in relation to performance and correct use of its Taxation; the Unit for Compliance employer’s contributions. The resources by means of improved and Economic Crime, the Unit for department prepares cases for the coordination and follow-up of sub- Analysis of Developments in Law, National Tax Appeal Board within ordinate agencies in the assess- the Internal Audit Unit and the its own field. The department is ment area. The department is Information Unit. responsible for administration of responsible for strengthening

6 7 development work and ensuring and budget work, archive instruc- Internal Audit Unit increased access to high quality tions and management of forms The Internal Audit Unit is placed information on taxation, VAT and and materials. directly under the Director General population registration. The of Taxation. The unit performs department also assists in the IT Department operational audits. The purpose is development of legal rules. The department is responsible for to assist the Tax Administration Operation, maintenance and fur- in achieving its goals and perfor- Collection Division ther development of IT systems mance requirements. The responsibilities of the for the whole of the Tax Collection Division include collec- Administration. IT is an impor- The Ministry of Finance tion of taxes, and assessment and tant tool for agency development The Ministry of Finance is collection of inheritance tax. The and for the development of new Norway’s highest taxation autho- Collection Division is organized as products and services. rity. The Ministry of Finance sub- a single department: the Collection mits bills to the within Department. The department has Unit for Analysis of its sphere of operations and pre- responsibility for technical and Developments in Law pares the Government’s proposals administrative supervision of the The Unit for Analysis of for budget and tax arrangements county tax collection offices and Developments in Law is placed for presentation to the Storting. supervision of tax collection at the directly under the Director local level. General of Taxation. The unit In addition to the Directorate of works on central matters relating Taxes, there are several other The department has responsibili- to new and existing rules and agencies under the Ministry of ty for legal tasks in relation to tax continuous developments in law. Finance. These include the collection, the tax payment system, Directorate of and control of employers and inheri- Unit for Compliance, , the Banking, Insurance tance tax. The Ministry of Finance Economic Crime and Securities Commission of regularly requests the assistance The Unit for Compliance, Norway, , the Oslo of the department in work on Economic Crime is placed directly Stock Exchange, the Norwegian drafting of legislation. The depart- under the Director General of Government Agency for Financial ment has overall responsibility for Taxation. The unit strives to achi- Management and Statistics payment, accounting and settle- eve a higher degree of compliance Norway. ment of taxes, VAT, employer’s and to combat economic crime. contributions and inheritance tax as well as responsibilities in rela- Information Unit tion to the Register for Pay and The Information Unit has respon- Tax Deducted and to distribution sibility for information strategy of taxes between municipalities and assists the managers of the and between tax creditors. Directorate and its subordinate agencies with guidance in the The Organizational information sphere. The unit Services Department plans and implements external The department is responsible for and internal information measu- the central administration of Tax res in cooperation with the vari- Administration personnel policy, ous specialist departments. The organization and management unit reports directly to the development, knowledge creation, Director General of Taxation. overall responsibility for planning

Population registration

The responsibilities of the local local tax assessment office. assessment office are collected in tax assessment offices include Notification shall also be sent the National Population Register population registration. The popu- when moving to or from another at the Directorate of Taxes. The lation registers also function as country. The population register population register located at registers of births. Both public also deals with notifications con- Oslo Tax Assessment Office allo- and private undertakings use cerning the choice of name for a cates personal identity numbers information from the population child and changes of name. to everyone registered as resident registers and are therefore depen- in Norway, and allocates special dent on its correctness. The popu- Electoral register numbers to persons not regarded lation registers form the basis of The population register is the as resident in Norway but who both the tax roll and the electoral basis for the electoral register are nevertheless liable to pay tax register. Svalbard Tax Assessment both for general elections and for and National Insurance contribu- Office keeps a special population elections at the municipality and tions in Norway. register for residents of Svalbard. county levels. In order to vote in a municipality, one must be registe- Statistics and planning red as a resident of the municipa- The population register forms the lity by 1 June in the election year Tax and assessment basis of population statistics, at the latest. which are important for planning of day care centres, schools, nur- Right of appeal Wage-earners, pensioners and bus- sing homes and other public ser- When it receives a notice of change iness enterprises pay tax to the vices. Agencies at both state and of address, the tax assessment offi- municipality, county and state. In municipal level are dependent on ce decides whether or not the noti- addition, they pay National Insur- the correctness of the information ce is approved. Such a decision ance contributions. Tax consists of in the population register. The may be appealed. The tax assess- income tax to the municipality and municipality where you are regis- ment office may also decide to county, national income tax and tered as resident is normally the change a home address or decide surtax to the state as well as municipality where you have a that a person who has applied for to the state and the right to benefits and where you registration as resident in a foreign municipality. Employers pay are to pay tax. country shall be registered as still employer’s contributions. resident in Norway. This is appro- Notifications to the priate when notice of a change of Payroll withholding tax population register address has not been given in The local tax assessment office The information recorded in the accordance with the rules. Such issues tax deduction cards on the population register is partly decisions may also be appealed. basis of information regarding based on notifications received expected net income and net from public agencies, such as Appeals shall be sent to the local wealth. Payroll withholding tax information concerning births, tax assessment office, and are con- deductions are calculated by the deaths and changes in marital sidered by the county tax assess- computer system of the Tax status, and partly on notifications ment office. Appeals to Oslo Tax Administration. In the event of received from individual members Assessment Office and appeals major changes in income or of the public. Everyone who against decisions concerning immi- deductions during the year, the moves house, whether to another gration and emigration are consi- taxpayer must apply for a new municipality or within the same dered by the Directorate of Taxes. tax deduction card. Employers municipality is required to notify deduct tax (payroll withholding his or her change of address to National Population Register tax) from pay in accordance with the population register at the The registers at each local tax the tax deduction card. The pay-

8 9 Appeal boards and right of appeal

roll withholding tax is transferred special arrangement for deduction Right of appeal to the local tax collection office in of income tax. Appeals against tax assessment six instalments during the year. shall be sent to the local tax col- Tax settlement notice lection office. Advance tax The tax settlement notice shows Self-employed persons pay tax in the tax that has been assessed for The time limit for appeals regar- advance four times a year. These an individual taxpayer. The diffe- ding errors in an assessment is advance tax payments are calcu- rence between this amount and three weeks from the date that lated on the basis of expected the total payroll withholding tax the assessment is made available income. Some wage-earners and and/or advance tax payments for by the local tax assessment office. pensioners with low income and the year is either underpaid or The appeal shall be in writing, high wealth or capital income also overpaid tax. The tax settlement giving grounds, and shall be make advance tax payments in notice also shows what income addressed to the local tax assess- addition to tax deductions from and wealth have been used as a ment office. pay or pension. Capital income basis for assessing tax and includes income from interest and National Insurance contributions, The decisions of the assessment property rental. In the case of the tax class and the number of appeal board or local tax assess- wage-earners and pensioners who pension points earned. The tax ment office in appeal cases can be pay advance tax, the amount is settlement notice is accompanied appealed to the higher assessment printed on the tax deduction card. by a specification of the amounts appeal board. on which the assessment was Tax returns based. Amounts due to taxpayers If the decision of the higher Everyone with or are paid directly into their bank assessment appeal board involves wealth must submit an annual tax accounts. Taxpayers who owe tax increased tax or National Insurance return. Pensioners with little inco- are sent a bank giro. contributions, an appeal can be me or wealth may be exempted addressed to the County Tax from this obligation.Taxpayers The local tax collection offices Appeal Board. If the decision of with income from self-employment The local tax collection offices are the County Tax Appeal Board must fill in a full tax return, pro- municipal and are not part of the results in increased tax, taxpay- viding information concerning state Tax Administration. The local ers may appeal to the National income, wealth, debt and deducti- tax collection offices are responsi- Tax Appeal Board. ons. The information is checked by ble for collecting income and wealth the local tax assessment office. On the taxes and employer’s contributi- The time limit for appeals is three basis of this information, the assess- ons. The county tax collection offi- weeks. ment authorities assess the basis ces have supervisory responsibility from which the tax is calculated. for the collection carried out by the Assessment appeal board and hig- local tax collection offices. In the her assessment appeal board Wage-earners and pensioners are case of Svalbard, County In each municipality there is an sent a pre-completed tax return Tax Collection Office has this func- assessment appeal board and hig- form in April. In this return form, tions as the tax collection office. her assessment appeal board. The the tax authorities have entered chairman and members of the the information they already have In connection with the tax settle- assessment appeal board are elec- concerning the taxpayer. The tax- ment, the local tax collection offi- ted by the municipal council. In the payer must check and make any ces reimburse excessive tax deuc- case of Svalbard, Longyearbyen necessary corrections in the infor- tions and recover underpaid inco- Local Council (Longyearbyen local mation given in the pre-completed me tax where insufficient payroll council) plays the role of the tax return form. Svalbard has a withholding tax has been deducted. municipal council.

VAT

The assessment appeal board may with power plant taxation. The Domestic VAT delegate its authority regarding National Tax Appeal Board has a Value Added Tax (VAT) is a tax on certain types of case to the local chairman and four members consumption of goods and services. tax assessment office. appointed by Royal Decree. The VAT has been in use in Norway Directorate of Taxes is the secre- since 1970 and is charged by busi- Decisions of the assessment appe- tariat for the National Tax Appeal ness enterprises on behalf of the al board or local tax assessment Board. state. VAT is thus not a tax of the office can be appealed to the hig- business enterprises that sell her assessment appeal board. In Appeal boards for the central tax goods and services but of their many cases, the higher assess- offices and the Petroleum Tax Office customers. ment appeal board is the highest The Central Office for Foreign appeal body. Tax Affairs and the Central Tax Persons starting new enterprises Office for Large Enterprises both that are subject to VAT and have The local tax assessment office is have their own assessment appeal a certain minimum turnover are the secretariat both for the asses- boards and higher assessment required to send notification of sent appeal board and for the hig- appeal boards. The Petroleum Tax registration to the county tax her assessment appeal board. Office has an assessment appeal assessment office. The county tax board but no higher assessment assessment office is responsible County Tax Appeal Board appeal board. for administration and control of The County Tax Appeal Board the VAT, while the county tax col- decides appeal cases brought by Municipal tax committees lection office is responsible for col- taxpayers as well as individual In each municipality there is a lecting the VAT. cases that the county tax assess- tax committee appointed by the ment office brings before the board Municipal Council. The committee Business enterprises are required for review. The county tax assess- considers applications for reducti- to send VAT returns to the county ment office is the secretariat for on or remission of tax, for exam- tax assessment office six times a the County Tax Appeal Board. ple when taxpayers have difficul- year. Business enterprises with an ty in paying taxes owing to sick- annual turnover of less than NOK The county tax assessment office ness and the like. When someone 1 million may apply to submit may request the county tax appe- is granted remission or reduction VAT returns annually. Business al board to review decisions made of tax over a certain amount, the enterprises in the agriculture, by the higher assessment appeal local tax assessment office redu- forestry and fishery sector submit board. ces the pension points for the annual VAT returns. The county income year concerned. tax assessment office controls National Tax Appeal Board enterprises liable to charge VAT by The National Tax Appeal Board means of continuous control of the decides appeal cases brought by VAT returns received or by tax taxpayers and cases that the audits of the business enterprises. Directorate of Taxes brings before If enterprises liable to charge VAT the board for review. The National submit incorrect information or fail Tax Appeal Board also decides to submit VAT returns, the county appeals against decisions of the tax assessment office makes a pro- Directorate of Taxes concerning visional assessment of VAT. fees for late delivery or non-deli- very of returns. The National Tax Right of appeal Appeal Board has special authori- VAT assessments can be appealed ty to make decisions in connection to the National VAT Appeal

10 11 Inheritance tax Collection of VAT, inheritance tax and lesser taxes and charges

Board. Other decisions, such as a Inheritance tax is a tax on inheri- VAT is paid by business enterpri- refusal to allow registration, can tance and gifts. The tax rates are ses and self-employed persons in be appealed to the Directorate of decided annually by the Storting. six instalments per year to the Taxes. In exceptional circumstan- county tax collection office in the ces it is also possible to apply for Anyone receiving inheritance or county where the enterprise is the writing-off or reduction of VAT. gifts is required to notify the registered. The same applies to county tax collection office in the amounts of tax found to be owing The National VAT Appeal Board county where the deceased person following audits by the county tax is the highest body for appeals or donor resides. If the deceased assessment office. The county tax regarding additional charges. The person or donor is resident abro- collection office keeps account of Directorate of Taxes is the secre- ad, the notification shall be sent payments and amounts owed by tariat for the board, and prepares to Oslo and Akershus County Tax business enterprises, and has the appeal cases. The board is appoin- Collection Office (Oslo og authority to enforce payment of ted by the Ministry of Finance Akershus skattefogdkontor). In overdue tax. and consists of a chairman and cases of inheritance, the time four additional members. limit for notification is six months Inheritance tax after the death occurs. In the case Inheritance tax is paid to the VAT on import of goods of gifts, the time limit is one county tax collection office in the VAT shall be paid when importing month after receipt of the gift. county where the deceased person goods. This is done to ensure that or donor resides. the same amount of tax is impo- In the case of a decease, all heirs sed on goods imported into are required to send notification Lesser taxes and charges Norway as on sales of domestic even when there is an estate The county tax collection offices products. The Norwegian Customs manager. are responsible for collecting a and Excise is responsible for cal- number of lesser taxes and char- culating and collecting the VAT The county tax collection office ges. These include legal costs, on imported goods. assesses the amount of tax that coercive fines, pollution charges, shall be paid on transfer of an audit fees, fees to the Banking, inheritance or gift. Inheritance Insurance and Securities tax shall be paid to the county tax Commission, compensation awar- collection office in the county ded to the county tax assessment where the deceased person or offices, fees to the Data donor resides. Inspectorate, licences to sell alco- holic beverages, Svalbard tax, coal tax, claim fees and petro- leum tax. Several of these are non-recurring taxes or charges which do not have fixed due dates.

Glossary

The terms used in information Split-income model me. Persons holding exemption concerning taxes are not always (Delingsmodellen) cards without a specified maxi- easy to understand. The following The split-income model is a met- mum tax-free income are general- glossary provides brief explanati- hod for calculating the part of ly social security beneficiaries ons of some of the most widely income from self-employment that with such low income and wealth used terms. shall be liable to surtax and that tax is not assessed. Persons National Insurance contributions. attending full-time education who General income (Alminnelig inntekt) The calculated part is referred to only work during certain periods General income is the sum of all as calculated personal income. of the year may be issued a tax taxable pay, income from self- exemption card with a specified employment and capital income (Eiendomsskatt) maximum tax-free income. less standard deductions and cer- A municipal tax on different types tain expenses with the exception of property. The municipality itself Personal identity number of special deductions. Normal decides according to specific rules (Fødselsnummer) deductions are the minimum stan- whether or not to impose property All persons registered as resident dard deduction (minstefradrag), tax and the size of the tax. in Norway are allocated an ele- deductions for travel between ven-digit personal identity num- home and the workplace, child-care National income tax (Fellesskatt) ber. The first six digits show the deduction and interest on debts. National income tax is charged on date of birth. The next three general income less any special digits are individual identification Employer’s contribution deductions. National income tax is numbers. They distinguish betwe- (Arbeidsgiveravgift) transferred to the state. en persons born on the same date, Employer’s contribution is paid by indicate the century in which the employers to the National Insurance Wealth tax (Formuesskatt) person was born and the sex of scheme. It is calculated on the Wealth tax is charged on net the person. The last two digits are basis of gross pay and allowances. wealth. Gross wealth includes control digits. cash, bank deposits, shares, fixed Inheritance tax (Arveavgift) assets, private cars, assessed Tax certificate (Likningsattest) Inheritance tax is assessed and value of real property, etc. Net The tax certificate accompanies paid by persons receiving inheri- wealth is equal to gross wealth the tax settlement notice. It tances or gifts. less debt. A certain proportion of shows general income and wealth, wealth is tax-free. Wealth tax is tax class and personal identity Tax on gross income (Bruttoskatt) divided between the municipality number. In the case of married The tax on gross income compri- and the state. persons, it also shows the spouse’s ses surtax and National Insurance general income, wealth, tax class contributions, and is calculated on Late delivery penalty and personal identity number. personal income. (Forsinkelsesavgift) Certificate of pay and tax deduc- If the annual tax return and/or ted (Lønns- og trekkoppgave) BSU (Home Savings for Young People) compulsory enclosures are delive- The certificate of pay and tax A type of savings account where- red after the stipulated date, the deducted is filled in by the employ- by a certain proportion of the local tax assessment office may er. It shows what the employee deposited amount may be deduc- impose a late delivery penalty. The has received in pay and other ted from taxable income. There size of the penalty varies according allowances, such as subsistence are maximum limits for annual to how late the return is delivered. allowance, company car, etc. savings and for the total amount during the course of the year. It deposited on the account. card (Frikort) also shows the total amount of Deductions are allowed until the A tax card showing that employ- payroll withholding tax deducted. year the taxpayer reaches the age ers shall not deduct tax on the The certificate of pay and tax of 33. holder’s income, normally under a deducted shall be sent to the tax specified maximum tax-free inco- authorities by the employer or

12 13 remitter of pension or benefit by The number of pension points 20 January of the year following decides the amount of additional Tax settlement notice (Skatteoppgjør) the income year with a copy to pension received from the The tax settlement notice shows the employee or recipient of pen- National Insurance Scheme. the total amount of tax to be paid, sion or benefit. how much tax has been deducted Personal income (Personinntekt) or paid in advance and any Value-added tax (VAT) Personal income may consist of amount overpaid or underpaid. (Merverdiavgift (moms)) pay, pensions and/or personal The tax settlement notice also VAT is a tax that is paid in con- income from active participation shows what income and wealth nection with the purchase of most in business activities. National the assessment is based on, the goods and services. VAT is trans- Insurance contributions and sur- tax class and pension points earned. ferred to the state. tax are calculated in relation to personal income. Additional charge (Tilleggsavgift) Net tax (Nettoskatt) Charge imposed if VAT legislation Tax charged on general income. The (Skattereformen) has been breached and tax has Net tax includes tax to the muni- A major reform resulting in consi- been or could have been evaded. cipality and county as well as derable changes in tax legislation, An additional charge may also be national income tax to the state. the National Insurance Act and imposed if the rules for employer’s the Accounting Act. The changes contribution are breached. VAT return (Omsetningsoppgave) were adopted in 1991 and entered Statement sent to the tax authori- into force from 1992. The purpose Additional tax (Tilleggsskatt) ty (data input centre) by a busi- of the reform was to create a neu- Tax that may be imposed if the ness enterprise or self-employed tral tax system, expand the tax tax return is not delivered or if person liable for VAT showing the base and reduce rates of taxation. tax or National Insurance contri- amount of VAT to be paid to or The concepts of general income, butions have been or could have refunded by the state. VAT returns personal income and the split- been evaded. can be delivered electronically via income model were introduced as the Internet. VAT returns are a result of this reform Surtax (Toppskatt) dealt with by the county tax A national income tax charged on assessment offices. Tax class (Skatteklasse) personal income exceeding a cer- There are two tax classes. Single tain amount. Organization number persons are assessed in class 1. (Organisasjonsnummer) Married couples are assessed in National Insurance contributions Nine-digit number used to identi- class 2 when only one of the spou- (Trygdeavgift) fy companies, other legal persons ses has income. They are also Contributions to the financing of and sole proprietorships. assessed in class 2 (2F) if both the National Insurance scheme. Organization numbers are alloca- have income but the income of National Insurance contributions ted by the Central Coordinating one of the spouses is so low than are calculated on the basis of per- Register of Legal Entities joint assessment results in the sonal income. Different rates (Enhetsregisteret) lowest total tax. Married couples apply for pensions, pay, and perso- are assessed separately in class 1 nal income from self-employment. (1E) for general income when Pension points (Pensjonspoeng) both spouses have such high inco- Pension points are awarded on me that this results in lower total the basis of pensionable income tax that joint assessment. Single higher than the National parents are also assessed in class Insurance basic amount. Persons 2 when specific requirements are from 17 to 69 years of age may fulfilled. have pensionable income based on employment or self-employment.

Important dates in the history of taxation in Norway

1200-1300 Establishment of tax collec- 1837 Municipal self-government is 1913 Tax returns are delivered for the tors. The tax collectors were subordi- introduced. first time. nate to the Lensherre (Lord Lieutenant of the Len) and the 1863 The Poor Tax is to be assessed by 1916 The Norwegian amter (counties) Rentekammer (Royal Treasury). the municipal council or by an assess- are from now on to be called “fylker”. ment commission. It is decided that The county treasurers (amtskasserer) 1632 The tax collectors are forbidden the Land Register is to be revised. are now to be called “tax collectors”. to act as customs officers. Registration of births is introduced 1882 New statutes are passed relating and responsibility for it assigned to 1646 Priests begin to keep parish to better coordinated tax authorities the Church of Norway. registers (christenings, confirmations, for rural and urban municipalities. A deaths). new body, the Tax Appeals 1925 Separate Taxation Act for Commission, is established. Svalbard. 1769 The first national census. 1884 Parliamentarism is introduced in 1934 The post of Chairman of the 1792 The first Inheritance Tax Act. Norway. National Tax Board is redefined as a main post and given the title “direktør 1814 Taxation powers are transferred 1892 Direct national tax is reintrodu- for skattevesenet” (Director of the Tax from the King to representatives elec- ced. Act relating to division into tax Authority). ted by the people. Taxation is imposed districts and organization of the tax on taxpayers on a discretionary basis authorities. Separate county tax com- 1935 Tax inspector posts are establis- according to their assumed financial missions and a National Tax hed in each county. This is the begin- capacity. Tax collectors are placed Commission are established. ning of the county tax assessment offi- under the Ministry of Finance. ces. A general purchase tax of one per 1893 The National Tax Commission, cent is introduced and is placed under 1816 Assessment commissions are Norway’s first national tax authority, the administration of the tax inspec- established in each municipality for holds its first meeting. tors. The tax collectors are made assessment of direct national tax in responsible for collecting purchase tax. connection with the establishment of 1894 In accordance with the Act rela- Norges Bank (the Norwegian Central ting to partial reorganization of the 1940 Prepayment of tax on extraordi- Bank) and redemption of national Civil Service, tax collection functions nary constructions is introduced. bank notes. Rural district and market are transferred from the tax collectors town taxes are introduced. to special county treasurer commissi- 1946 A non-recurring tax is imposed ons (amtskassererbestillinger). on increase in wealth during World 1818 Act relating to the tax liabilities War II. of landed properties. 1906 Act relating to municipal popula- tion registration. 1946 Compulsory population registra- 1820s Municipal tax collectors are tion in each municipality. established in the largest towns. 1911 New Taxation Act. The current assessment administration is establis- 1947 Seaman’s tax and “tax on mon- 1824 Assessment appeal commissions hed. County tax boards and a National thly income”, are introduced. are established in each municipality to Tax Board are established largely on consider appeals against rural district the basis of the same provisions as the 1957 Tax on annual income is introdu- and market town taxes. previous commissions. The tax return ced with an advance payment system. system is introduced. Assessment Combined collection of taxes to the 1827 The Schools Act permits imposi- boards are established in all municipa- state and municipality is made the tion of school taxes. lities to replace the assessment com- responsibility of the municipal tax col- missions. In the towns, assessment lectors. The Chief Assessment Officer 1836 The new Land Register – a regis- councils with three members are esta- (local tax assessment office) is assig- ter of the relative values of landed pro- blished. In rural municipalities this is ned the of submitting proposals perties – is implemented as a basis for voluntary. A permanent secretary may in all assessment decisions. The Chief assessment of municipal taxes. The be appointed as one of the members of Assessment Officer becomes a statuto- Storting refuses to renew the rural the council. ry member of the local assessment district and market town taxes. appeal board.

14 15 1964 Personal identity numbers are 2001 The VAT reform enters into force introduced. The National Population on 1 July 2001 and introduces a gene- Register is established. ral obligation to charge VAT on services.

1965 The state takes over responsibili- The assessment appeal boards become ty for the local tax assessment offices pure appeal and review bodies from 1 and the population registers. Oslo Tax January 2001. The local tax assess- Assessment Office and Oslo ment offices are on the same date Population Register are not taken over assigned full responsibility for assess- by the state until 1968. ment of all taxpayers subject to ordi- nary assessment, including the right 1967 Introduction of the National to impose additional tax. Insurance scheme. On 1 November 2001 a system for 1970 VAT and investment tax are advance rulings on tax matters by the introduced to replace purchase tax. A Directorate of Taxes is introduced. college is founded for training of tax personnel. 2002 In 2002, the assessment adminis- tration is reorganized. The Tax 1975 The Petroleum Tax Act is passed. Administration is still represented in A new Act relating to municipal pro- all municipalities, but the number of perty tax is adopted. local tax assessment offices has been reduced from 436 to 99. 1976 A joint taxation Act for urban and rural municipalities. Investment tax is abolished with effect from 1 October 2002. 1983 The population registers take As a result of several decisions by the over responsibility for registration of Supreme Court, additional tax is births. regarded as a penalty pursuant to the European Convention on Human 1984 The Assessment Act enters into Rights. This results in extended rights force. for taxpayers and persons liable for VAT in cases concerning additional tax 1992 The tax reform is implemented. or charges and penalties may not be imposed on them for the same offences 1993 A simplified tax return system is that additional tax or charges have introduced for the whole country. The been imposed for. Chief Assessment Officer is no longer a member of the local assessment 2004 New appeal board structure with appeal board. an appeal board and a higher appeal board for each local tax assessment 1997 The county tax collection offices office. are placed under the Directorate of Taxes. The financial services function is transferred from the Directorate of 1998 A new taxation act for Svalbard. Taxes to the Norwegian Government A separate tax office in Svalbard. Agency for Financial Management.

1999 Introduction of a pre-completed New annual cycle for business enterpri- tax return form for the whole country. ses and self-employed persons. The final Merger of the independent population date for delivery of tax returns is moved registers in Oslo, Bergen, Trondheim from the end of February to 31 May. and Stavanger with the local tax assessment offices. The Register of Shareholders is esta- blished.

Further information Issued by the Directorate of Taxes Do you need to know more about tax? The Tax Administration has Boks 6300, Etterstad brochures providing information 0603 Oslo and explanations of rules concer- March 2004 ning taxation. You can find the Design: Stork Design brochures at your local tax assess- Production: ment office (ligningskontor) or on Number of copies: 10 000 the Tax Administration’s website: RF-2015 http://www.skatteetaten.no Here you will also find announce- The Tax Administration’s website: ments and press releases from the www.skatteetaten.no Directorate of Taxes, answers to questions, interactive tools and NRK1 Tekst-TV: page 818 the addresses of the various offices of the Tax Administration.