Tax Deduction card – Overview
Everyone who works in Norway must have a tax deduction card (skattekort). The taxcard tells the employer how much tax they must deduct before paying wages, and is the equivalent of a notice of tax code in the UK.
Without a tax deduction card, 50% tax is deducted from the salary. As soon as the taxcard has been submitted to the employer, the balance between 50% and the correct rate will be reimbursed.
The taxcard has a tax table number and a percentage. Tax tables 7100-7299 are ordinary tax tables; tax tables 7300-7499 include the standard deduction for foreigners. The percentage rate is only used for secondary jobs or if there is no tax table number.
Questions concerning the taxcard should be addressed to the local tax office, in Oslo to the Oslo Tax Office (Skatt øst Oslo) or the Service Centre for Foreign Workers.
Applying for a Taxcard
Applications for a taxcard must be made on the form Application for tax deduction card (RF-1209) and sent to the local tax office. For detailed information on the application procedure please contact us. The issuing authority sends the tax deduction card to the applicant who must forward it to their employer immediately.
Before applying for a taxcard, check if you might be exempt from paying taxes in Norway based on a tax treaty. The most common exemption from National Insurance which requires form E101 from the UK authorities.
During the first two years employees are tax-residents in Norway, they are eligible for a standard deduction for foreigners [pdf] (10% of gross income, reducing taxes by about 2.8%). You need to apply for this in the box “other information” on the tax deduction card application form. Note that the request for a standard deduction for foreigners must be repeated on the tax return form (selvangivelse) in April.
A tax deduction card application also acts as an application for a national identity number. If a separate application for a national ID number has already been sent, notify this in the box “other information” and notify the tax office when you receive the number.
Renewing / Changing a Taxcard
Tax deduction cards for the new income year are issued in the beginning of December. However, many foreign nationals do not receive this automatically. Visit the Service Centre for Foreign Workers or use the form Application for new or changed taxcard/advance tax 2014 (RF 1102E), to apply for a new tax card.
If your income and/or wealth situation changes significantly in the course of the income year, you should apply for a new taxcard to assure that the correct amount of taxes are withheld by the employer. You can do this in the same way as for renewing your taxcard.