This GMS Flash Alert reports that Norway’s government issued an amendment to the budget for 2016 that raises individual income tax rates by 0.1-percentage points, as compared to the rates originally presented in the budget.
On October 30, 2015, Norway’s government issued an amendment to the budget for 2016 that raises individual income tax rates by 0.1-percentage points, as compared to the rates originally presented in the budget.1
While in general, the 2016 budget will reduce taxpayers’ marginal tax rates, this amendment means the reduction will be slightly less than had been anticipated. Ultimately, the overall impact of the tax changes in this budget will depend on each person’s particular circumstances.
International assignment cost projections and budgeting for assignments to Norway, and for assignees outside Norway still subject to Norwegian taxation, should reflect these changes, once they take effect. Also, where appropriate, adjustments by payroll administrators to withholdings should also be made once the changes take effect.
In order to help cover the government’s expenses tied to its recent commitments to take in a growing number of migrant asylum seekers coming into Norway, the government has issued an amendment to the budget for 2016. Among the measures to help cover these costs, the individual income tax rates in the budget proposal have been increased by 0.1-percentage point. See the changes in the table below (in bold).
|Tax Rate*||Income Brackets|
|25%||Ordinary income (uncapped)|
|0.0%||Up to NOK 158,800|
|0.9% (0.8%)||Over NOK 158,800 to NOK 224,900|
|1.7% (1.6%)||Over 224,900 to NOK 565,400|
|10.7% (10.6%)||Over 565,400 to NOK 909,500|
|13.7% (13.6%)||Over NOK 909,500|
* Rates in parentheses are what the government originally proposed.
1 For the announcement of the amended rates, see Prop. 1 S Tillegg 1 (2015–2016) Endring av Prop. 1 S (2015–2016) Statsbudsjettet 2016 og Prop. 1 LS (2015–2016) Skatter, avgifter og toll 2016 (økt antall asylankomster).
For additional information or assistance, please contact your usual KPMG GMS or People Services professional or one of the following professionals with the KPMG International member firm in Norway:
Tel. +47 4063 9478
Tel. +47 4063 9448
The information contained in this newsletter was submitted by the KPMG International member firm in Norway.
© 2020 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.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.