As part of the Norwegian income tax compliance process, individuals who have worked in Norway, either offshore on the Norwegian Continental Shelf or onshore in Norway have a responsibility to complete a Norwegian income tax return.
The Norwegian Tax Administration have recently issued pre-populated tax returns to individuals who worked in Norway during the 2016 tax year and these can be accessed via Altinn, the electronic Norwegian filing portal. These pre-populated tax returns are based on information which has been submitted to Norwegian Tax Administration by employers during the year. Unfortunately, errors do arise, particularly for UK residents, therefore it is important that the returns are not ignored. If these returns are not verified or amended, they will be assumed to be correct.
Whilst the deadline for submission is the 30th April 2017, it is possible to obtain an extension to the 31st May 2017. The extension application can be made via Altinn or in writing to the Norwegian Tax Administration however this must be done prior to the 30th April – no extensions will be granted beyond this point.
What does the tax return show?
The tax return gives an overview of income earned in Norway, deductions allowed, debts and Norwegian bank deposits for the 2016 income tax year.
What essentials should be checked on the pre-populated tax return?
- Check the personal details shown on the return are correct. If not, the records should be corrected.
- Check whether all available deductions have been granted – some deductions are granted automatically but some can only be claimed by making an amendment to the pre-populated return.
- Check that Norwegian National Insurance Contributions have not been charged incorrectly.
- If the tax return refers to a non-Norwegian national the “Additional Information” section should be completed – This is particularly important for UK residents.
How should the tax return be submitted?
The easiest way to make changes to the tax return is via Altinn. Alternatively, a paper copy can be sent to the Norwegian tax Administration.
What happens after the tax returns are submitted?
After the tax returns are submitted the Norwegian tax Administration will process the information in it and issue a tax assessment notice (TAN). The TAN will indicate whether too much tax or too little tax has been paid to Norway. If tax has been overpaid, a refund will be issued however, if there is underpaid tax then this must be settled as soon as possible to avoid any interest charges. TAN’s for 2016 will be issued mid-October 2017. 2016 TAN’s also include any tax owed from prior years.
What happens if a Norwegian tax return has not been issued by the Norwegian tax Administration?
If a person worked in Norway during 2016 and the Norwegian tax Administration have not issued a pre-populated tax return for 2016, form RF-1281 “ Tax Return for individuals who have not received a pre-completed tax return 2016” should be completed instead.
If you require any further information on this, want to look to extend the deadline for filing, or support with completing your employees’ or own personal Norwegian Income Tax Return, please contact Catriona Ross, IES Assistant Manager (firstname.lastname@example.org) or your usual AAB contact.