For those working onshore in Norway or on the Norwegian Continental Shelf for a foreign employer, a tax card will be issued by the Central Office – Foreign Tax Affairs (COFTA). Reporting is mandatory via the tax form ‘RF-1199 Information about contracts, contractors and employees’.
Those living abroad and working on the Norwegian Continental Shelf can choose between the 10% standard deduction and actual expenses. They receive a tax card (no. 7350), including the minimum deduction and 15% standard deduction, i.e. a deduction equivalent to 10% of gross income.
When working onshore in Norway, tax card 7150, tax code 1, is issued. This tax table includes the minimum deduction only. For the four first tax assessments in Norway, you can choose between the 10% standard deduction and actual expenses.
Employees working the whole year in Norway may apply for a tax deduction card based on tax withholding over 10.5 months. Please note that the total amount of taxes withheld is the same regardless of which tax deduction card is used.
Employers are responsible for deducting income tax from the earnings of each employee and paying this over to the assessment authorities. An individuals’ liability to income tax is based on the tax residence of that individual. It is therefore essential that a person’s residence is determined as soon as they come to Norway, if they are seconded from overseas.