In international

By Hans Esser, for ExpatBriefing.com 16 May, 2018

The Norwegian Government has proposed changes to the tax rules for foreign workers in Norway, which it says are complex and difficult to administer.

Under current rules, expatriate workers may choose to apply a standard deduction of 10 percent to their gross salary, up to an annual limit of NOK40,000 (USD5,000). Generally, the deduction can be claimed in the first two years of a taxpayers residence in Norway.

However, by electing to utilize this deduction expat taxpayers forgo deductions for other items of expenditure, such as commuting costs and interest payments.

Under the new proposals, announced as part of the 2018 Budget on May 15, the Government wants to introduce an alterative scheme under which the income of foreign workers would be taxed at a flat rate of 25 percent with no deductions.

Taxpayers could opt into the flat tax regime voluntarily, or continue to compute their taxes under existing income tax rules.

If approved by parliament, the new rules would apply from 2019.

Tags: Expatriates | Tax | Interest | Budget | Norway | Tax Breaks | Individual Income Tax | Tax |

 


https://www.expatbriefing.com/expat-news/Norway_Proposes_Simpler_Tax_Rules_For_Foreign_Workers____76782.html

Recent Posts

Start typing and press Enter to search