Understanding Your 2019 Tax Return

Income levels in Norway are high, but so are the taxes! You can however save thousands of krone if you avoid one common mistake that most people in Norway make. In this maiden edition of Every Øre Matters, our focus is to help you get the best out of your 2019 tax assessment.

Timeline

You will receive notification of your tax return (skattemelding) between March 16 and March 31, 2020. The deadline to submit your completed tax return is April 30, however you can get a one month extension if you request before the April 30th deadline.

Changes in the 2019 Tax Return

The biggest change to the tax return is that it is easier to use and understand. Also if you change a number, you will see the updated tax calculation in real time. Lastly, you may be able to get back your tax refund in as early as one to two weeks, if you fulfil the necessary conditions.

In this period of economic uncertainty, Every Øre Matters.

Common Deductions

According to DNB’s Sijle Sandmæl, one common mistake people make in Norway is that they miss out on the tax deductions that they are entitled to. Here are some of the common deductions that you can claim:

Child Care: If you have children below 12 years, you can claim a deduction for documented child care expenses (e.g barnehagen, SFO, dagmamma etc) of up to NOK 25,000 for one child, and an additional NOK 15,000 for each child in addition to the first. This also applies for children age 12 and above who have special needs.

Donations to Charity: You can get a deduction of between NOK 500 and NOK 40000 for monetary donation to an approved voluntary organisation and/or religious or belief-based community.

Interest on Loans: You can deduct the interest you paid on your loan as well as expenses incurred in obtaining or refinancing a loan.

Trade Union Fee: If you have paid trade union fees, you can deduct up to NOK 3,850 from your tax

Spousal Maintenance: The full amount of maintenance payment to a former spouse can be deducted. This will however be discontinued from the 2020 income year.

One common mistake people make in Norway is that they miss out on the tax deductions that they are entitled to.

BSU (young people housing savings account): Are you below 34 years old and operate a BSU account, you can deduct up to 5000 if you have complied with the conditions of a BSU account.

These are just some of the common deductions you may be entitled to. You may also be entitled to claim deductions for traveling a long distance to work, for relocating due to a new job, for being a single provider to a minor, for staying away from home due to work etc. Some of the deductions are pre-filled based on third party reports, but you should always check that the figures are correct.

To find out all the deductions that you are entitled to, use this user-friendly deduction wizard, because in this period of economic uncertainty, Every Øre Matters.

Every Øre Matters is a quarterly financial insight series that will equip you with financial tips and information that you need to thrive and prosper as an international in Norway.