As soon as the Norwegian tax authorities have assessed the Norwegian tax returns, they will issue a Norwegian Tax Assessment Notice (TAN) between June and October, following the year of duties in Norway.
The TANs will be available in Altinn (online filing portal), or sent to directly to individuals. Additionally, the Norwegian tax office will send a copy of the TAN to those who have a digital mailbox. The Norwegian tax office cannot give an exact date for when individuals will receive their TAN. However, they have advised that the first batch, which is most electronic users, will receive their TANs on 27th June. The next release is 15th August, and then there will be ongoing settlements released until 25th October.
Electronic users will receive a notice by e-mail or SMS when their TAN is available in Altinn. If a paper tax return has been submitted, these individuals should expect to receive their TAN in August, at the earliest.
The TANs show how the Norwegian Tax authorities have assessed the Norwegian taxable income and the final income tax due by an employee. The final income tax due is compared with the amount of tax withheld by the employer during the tax year in question. The tax assessment notice advises the individual of any refund of tax that they may be due or any additional amounts that they may be due to pay.
Experience has taught us that given the often complex working arrangements that internationally mobile employees have, their tax assessment notices are often incorrect. It is therefore critical that the TAN’s are reviewed by a specialist who will quickly be able to identify and resolve potential errors. Failure to do this can mean that significant penalties and interest are charged to both the employees and employers alike.
TANs are very important documents and they cannot be ignored! If the Norwegian Tax authorities believe that the individual is due to pay additional tax and they do not pay it, they have the power to instruct HMRC to collect the money from the individual.
If an individual receives a demand to pay Norwegian tax, they must take immediate action. It will not go away. They should also be aware that if they receive a refund of Norwegian tax which is actually not due and the Norwegian authorities subsequently realise their mistake, they will pursue the individual to repay this. In some cases, refunds may be due to be repaid to HMRC and it will be the individual’s responsibility to ensure that it is done.
TAN’s also confirm the maximum amount of Norwegian tax credit that can be claimed, in the UK from HMRC where individuals are completing a self-assessment UK income tax return. Any over claims of credit in the UK are treated as a very serious matter by HMRC.
If you or your employees have received a tax assessment notice recently and wish to discuss these further, then please contact Carol Sim (firstname.lastname@example.org) or your usual AAB contact.
To find out more about our Payroll & Employment Taxes Team, click here