Most people new to Norway choose the 25% kildeskatt (PAYE) tax, tempted by the idea of paying 25% tax and nothing more. In the vast majority of cases, however, this is not worthwhile – with earnings below 40.000 kr/month gross, you will ultimately pay less tax than 25%!
The difference comes from the different ways the final tax is calculated – under standard taxation, the tax is progressive, so at the right income level it ends up being lower than 25%, as with kildeskatt. Contact us and we will calculate the benefit in your situation free of charge!
In which cases should you give up the 25% tax (kildeskatt)?
- If you earned less than 480 000 kr gross in the year, i.e. 40 000 kr per month.
- If you receive a benefit from NAV.
- If you had loans, child deductions, or you are a single parent
- If you have a wife/husband/child in Poland.
- If you meet any of these conditions – contact us, and we will offer you a more favourable tax return. You can change your tax card and annual tax return even up to 3 years back!
Check for yourself whether it is worth it!
For example, if you earned 400 000 kr gross – you paid 100 000 kr tax on it, so you were left with 300 000 – an easy calculation. However, your colleague under the general rules, who earned the same amount, will pay 94 018 kr tax, meaning they earn 6000 kr more than you.
Did you earn 300 000 kr gross in the year? You received 225 000 kr net. Your colleague, however, earned 15 000 kr more just by switching. The lower your earnings, the more beneficial the change is for you.
If you want to change this form of taxation to standard taxation – pay using the button below:
25% tax (kildeskatt) versus annual tax return
Under 25% tax for foreign workers, the most important rules are:
- fixed advance tax payments of 25% of income,
- no obligation to file an annual tax return,
- no tax refunds or additional tax payments,
- no possibility of deductions,
- allowances such as, for example, “half tax before Christmas” do not apply.
What does the service include?
- Logging in to Skatteetaten.no (NOTE: During the phone call, you will be required to provide your login details).
- A thorough check of whether the change is worthwhile
- Changing the taxation system
- Changing the tax card
- Information confirming the change and the next steps
This fee covers only the change to the tax rules. You may still need an annual tax return, which you can pay for here (click).
NOTE: The final decision regarding the tax change depends on the tax office. Our company is only an intermediary between you and the tax office. However, in 99% of cases the change of taxation method is straightforward and the tax office approves it.