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Norway - Other taxes and levies

Norway - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes in Norway? If so, what are the rates for employers and employees?

Employer and employee 2019

Type of insurance Paid by employer  Paid by employee Total
Social security contribution 14.1% 8.2% 22.3%
Total 14.1% 8.2% 22.3%


An individual working in Norway is subject to Norwegian social security contributions. The normal rate for the employer is 14.1 percent on gross earnings. The employee’s contribution is 8.2 percent based on gross wages.

There are three exceptions from Norwegian social security membership and payment of social security contributions that can come into force.

  • A person insured under another EEA/EU country/territory social security scheme can be wholly exempted by presenting an A1 certificate. 
  • Furthermore, Norway has entered into several other reciprocal agreements on social security, for example with Canada and Quebec, Australia, India and the U.S. These agreements may wholly or partially exempt, both the employee and the employer, from contributions to the Norwegian social security system by presenting a valid Certificate of Coverage.
  • A foreign employee from a country/territory without a reciprocal agreement on social security with Norway and outside the EEA-area, may in some circumstances be exempted, wholly or partially, from contribution to the Norwegian social security system.

Conditions are strict and the employee needs to have a similar and satisfactory coverage as governed by the Norwegian social security scheme. An application must be filed towards Norwegian social security body.  

In Norway, there is a mandatory occupational pension. This is paid by the employer and the minimum rate is 2 percent of gross income. Exceptions can be granted under certain conditions.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Norway?

There are no gift or inheritance tax in Norway for 2019.

An individual resident in Norway for tax purposes on 1 January in the year following the income year is subject to net wealth tax on their worldwide wealth, please see below Non-resident individuals are only subject to wealth tax on certain property in Norway, generally on real estate and on assets connected to a permanent establishment or fixed place of business in Norway.

 

Municipal wealth tax on individuals 2019

The municipal wealth tax is 0.7 percent of wealth above NOK1,500,000.

State wealth tax on individuals

The state wealth tax is 0.15 percent of net wealth above NOK1,500,000.

Taxable amounts are rounded down to the nearest thousand.

Marginal rate on wealth tax is 0.85 percent (0.7 percent + 0.15 percent).

Real estate tax

Are there real estate taxes in Norway?

The municipalities may levy a real estate tax. It is payable by the owner of the property, irrespective of their residence. The tax is computed on the assessed value of the property using a rate varying from 0.2 percent to 0.7 percent. The tax is payable on installments that are decided by the local authorities.

Sales/VAT tax

Are there sales and/or value-added taxes in Norway?

There are value added taxes, VAT, which is a general tax levied on sales within the country/territory and on import. Value-added tax is levied on goods and services, and applies to all stages in the chain of production and distribution. Any person engaged in trade or business is required to register and to charge and pay VAT on goods and services they supply. Value-added tax on inputs purchased by the registrants is deductible in the VAT accounts. Value-added tax is thus not a tax on the registrants but a tax on final consumption.

Unemployment tax

Are there unemployment taxes in Norway?

Not applicable.

Other taxes

Are there additional taxes in Norway that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Please contact KPMG Law Advokatfirma AS for additional information as there are some additional taxes that may be applicable depending on the actual circumstances.

 

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g., foreign financial accounts, securities) to the country/territory’s fiscal or banking authorities?

If the employee is considered tax resident in Norway, they will have invoked a global tax liability. All income and wealth (assets) has to be declared in the Norwegian tax return.

© 2019 KPMG Law Advokatfirma DA, a Norwegian member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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