In Norway, trade union membership is common. Fagforeningskontingent is the Norwegian term for a trade union membership fee. In other words, it is the amount that an employee (member) union) regularly pays into his trade union.
The state supports employees by allowing them to deduct contributions to these unions from their income – a relief known as fagforeningsfradragBelow, we explain in detail what this relief is and how to use it in practice.
Tax relief for fagforeningskontingent
Norwegian tax law allows for the deduction of amounts paid in union dues (fagforeningskontingent) from income. This deduction is available all employed persons, which:
- are members of a trade union and their dues are deducted directly from their paychecks by their employer.
- pay contributions themselves without any deductions from their salary.
- belong to a union in another EEA NOK and pay contributions to it, provided that the union has concluded a collective agreement (tariffavtale) on behalf of its members.
Meeting any of these conditions means that you can deduct the contributions paid from your income in your annual tax return.
However, there is an annual amount limit deductible. In the 2024 tax return, a maximum of NOK 8 can be deducted from your income for 250. This limit is cumulative and applies regardless of the number of associations you belong to (you cannot double the deduction by being a member of several organizations).
Please also remember that if you only paid contributions for part of the year (e.g. you were not employed for the entire year), you are only entitled to a deduction proportional to the period of contribution payment.
Deducting union dues reduces your taxable income, which in practice means you pay less tax. For example, at a tax rate of around 22%, deducting the maximum amount of NOK 8 translates to approximately NOK 250 in tax savings. Therefore, it's worth taking advantage of this deduction if you belong to a union and pay fagforeningskontingent.
How do I deduct contributions on my tax return?
Taking advantage of the union dues tax relief is quite simple, and in many cases, it's done automatically. If your employer deducts union dues from your salary, the amount of these deductions is reported to the Tax Office (Skatteetaten) each month. a-melding. Based on this data, the annual tax return (skatmelding) is usually pre-filled with information about the contributions you have paid. However, it is good practice to verify this yourself.
At the end of January or beginning of February, your employer sends you an annual statement of income and deductions – the so-called ÅrsoppgaveThis includes the total union dues deducted from your salary in the previous year. Compare this amount with the information in your salary slip. If everything matches, you don't need to do anything. If the amount on your tax return is incorrect or a deduction is missing, you can correct it yourself or with the help of an accountant by entering the correct deduction amount. In such a situation, it's also a good idea to notify your employer so they can correct the information in their annual statement for safety reasons.
The situation is slightly different if you pay your dues entirely yourself (e.g., by transfer to a trade union, without your employer's involvement). Such expenses are also deductible, but to be automatically included, you must have provided your employer with proof of paid dues during the year. If you didn't submit this information before the end of the year, you can still receive the relief: simply add the total contributions paid manually to your tax return – your accountant can help you with this to ensure everything is entered correctly. Remember to keep appropriate documentation in case of an audit (more on this below).
It's worth completing the formalities before the end of the year. The union may report your contributions to Skatt, but this isn't always the case, so it's best to obtain confirmation yourself. According to Norwegian regulations, the union issues a certificate of contributions paid at the end of the year (by December 10th), and the employee should submit it to their employer by December 15th so that the contributions can be included in the annual report. This way, the deduction will appear immediately in your annual statement and you can avoid manual adjustments.
Contribution documentation
Do I need to send proof of payment to the tax office? Generally, this isn't required – you don't need to attach any documents when filing your return. However, remember that the office may request proof of payment. in case of inspection, so be sure to keep the appropriate documentation. What documents will be sufficient? These could include:
- a union certificate confirming the amount of contributions paid – if you paid the contingent by transfer directly to the union.
- lønnslippy or written confirmation from your employer specifying the amount of the deducted contribution – if the contribution was deducted from your salary.
Fagforeningskontingent It's simply a union dues, but thanks to the tax relief it provides, it's less financially impactful for employees. The Norwegian tax system thus encourages union membership. If you work in Norway and pay union dues, make sure you're taking advantage of the deduction you're entitled to—it's a simple way to reduce your income tax.
Have questions about this tax relief or others in Norway? Or perhaps you need help verifying the accuracy of your tax return? Contact us: +47 21 38 38 21.
We are available Monday through Friday from 9:00 a.m. to 21:00 p.m. and we will be happy to help!
Author of the article: Marcin – marcin@efirma.no
