Norwegian Tax System and Holiday Entitlement

Hello

The Norwegian tax system is a fair one.  You get taxed from January to December.  June is holiday pay from previous year and also any overtime (apparently normally takes two years to build up properly for expats). So you don't get paid in June other than holiday pay and overtime.  Also in December you only get taxed half tax.

Also for the first two years you get 10% off your taxes for the year as an ease into the Norwegian tax system. 
I have been working here since beginning of June 2011 and asked someone to explain to me what happened with regards to tax and wages.

It is different to UK tax system, but it does work, just allow for the lesser pay next June 2012, as you haven't earned enough probably for the holiday pay/overtime to be paid, the following year you will have the full allowance for holiday pay and if any overtime. 

I understand what you are saying about dividing it into twelve payments, but that is the UK system.  Norway is different in the sense they get taxed 10.5 months of the year (no tax june and half tax in December).

My company warned me about the system out here for tax and holiday/overtime pay in June.

Hope you understand it more now.  Just different way of doing things that is all.

If you have any other questions, just ask. I am learning the way out here as well.

My only other warning is check that you are being taxed correctly as I have know other people mention that they have been sent a tax bill at end of year for underpaying tax, which has to be paid.  Also if you over pay tax the tax office do pay you back tax.

On another note regarding tax, everyone has to from what I have been told fill in online/or by paper your taxes you have paid for the year.

Sarah

Many thanks for the excellent email.

I guess I am banging my head against a brick wall as I am not going to be able to change the Norwegian tax System. Although I think it is bizarre when you get a pittance in June after joining the previous November!!!

Thanks for the advice on over tax, although I have lots of advice from PWC and delottes, I am still not sure whether i am being over taxed or not!

Hello

Glad to help.  The company that you work for should have informed you about the tax situation when you started there.

Here is a useful link for tax and has other links besides that can help in Norway.

http://www.skatteetaten.no/

You can register for a MINI ID on here. Or rather ask them to send you a pin number out so you can sign in and check your tax that is being deducted.

A norwegian in work showed me this so that I can keep an eye on the tax that is being deducted.

Also from what I have been told the pay in June for holiday/overtime pay works out approximately 10.2% of your annual salary, that amount will be paid in June. Although it does take two years for the correct amount to build up to be paid in that month.

I have only found all this out thanks to a work colleague who is in one of the national unions out here.

If you have any further questions I will try and answer. If not will ask colleague in work.

Just a different system and yes it does take time to get used to things out here.