Employee’s contribution to the Norwegian national insurance scheme (NIS)
Employees working onshore in Norway and on the Norwegian Continental Shelf are covered by the Norwegian NIS. The National Insurance Office handles applications regarding exemption from NIS.
For further information please contact:
The National Office for Social Insurance Abroad, P.O. Box 8133 Dep, NO-0033 OSLO, NORWAY. Telephone: +47 21 07 37 00, fax: +47 21 07 37 01.
Employer's contribution to the NIS must be calculated when exemption from NIS has not been granted.
Income
Gross income must include total payment, salary for off-duty periods, vacation pay, bonuses and certain payments in kind (ref. letter of subject no 5, 12 and 13)
Deductions
Minimum deduction2011 – 36 % on gross/personal income max. NOK 75 150, min. NOK 4 000
If you work only a part of the year in Norway, the minimum deduction will be as stated below:
| Months in Norway |
1 |
2 |
3 |
4 |
5 |
6 |
| Min |
4 000 |
5 300 |
7 950 |
10 600 |
13 250 |
15 900 |
| Max |
6 263 |
12 525 |
18 788 |
25 050 |
31 313 |
37 575 |
| Months in Norway |
7 |
8 |
9 |
10 |
11 |
12 |
| Min |
18 550 |
21 200 |
23 850 |
26 500 |
29 150 |
31 800 |
| Max |
43 838 |
50 100 |
56 363 |
62 625 |
68 888 |
75 150 |
Standard deduction
The standard deduction is 10 % on gross/personal income when the gross-deal method is chosen, max. NOK 40 000.
Deductible trade union contribution
Max. NOK 3 660.
Seafarer’s deduction
The seafarer’s deduction (if qualified) is 30 %, max. amount NOK 80 000.
Personal/family allowance
If you are not regarded as resident in Norway for tax purposes, the personal/family allowance is reduced according to the duration of the stay/work period. (The deduction is not to be stated in the Tax Return).
| Tax Code 1 |
Tax Code 2
The spouse’s income must not exceed NOK 35 000 – is to be documented |
| NOK 43 600 |
NOK 87 200 |
Example:
If you are taxed in tax Code 1 and have a total work period in Norway/on the Norwegian Continental Shelf of 60 days (2 months), you are entitled to a personal/family allowance of: NOK 43 600 x 2/12 = NOK 7 266
This allowance is not to be used when calculating the top tax and NIS, only when calculating the municipal tax.
Calculations of the taxes
If you work onshore in Norway, a part of your tax is local municipal tax and another part is tax to the State (top tax and NIS). When working offshore, the calculation is the same, but the total tax goes to the State.
To calculate the total taxes you must add municipal tax, top tax and contribution to the NIS (if not exempted).
Municipal tax
The municipal tax rate is 28 % on ordinary/net income.
Top Tax
The top tax is calculated on gross/personal income and the tax free amount is (like the personal/family allowance) reduced according to the stay/work period.
| Tax rate |
Tax Code 1 and Tax Code 2 |
| - |
not exceeding NOK 471 200 |
| 9,0 % |
NOK 471 200 – NOK 765 800 |
| 12,0 % |
exceeding NOK 765 800 |
Please note that the tax rates with regard to municipal tax and top tax are different for Finnmark and Nord-Troms. There is also a particular deduction (Finnmarks-fradrag) applicable for these counties.
National insurance contrubution
Employee's contribution to NIS for the income year 2011 is 7,8 %. NIS is not to be calculated when the gross/personal income does not exceed NOK 39 600.
This contribution is calculated on gross/personal income.
Example
This person is taxed in tax Code 1. The total working period including paid off-duty periods has been 60 days (2 months). The person is entitled to 2/12 personal/family allowance and 2/12 of the minimum deduction. The calculation is based on the “net-deal” method (without the 10 % standard deduction), ref. letter of subject no 5, 12 and 13.
| Personal/gross income |
|
NOK |
100 000 |
| Minimum deduction NOK 75 150 x 2/12 |
- |
NOK |
12 525 |
| Ordinary/net income |
= |
NOK |
87 475 |
|
|
|
|
| Municipal tax |
|
|
|
| Ordinary/net income |
|
NOK |
87 475 |
| personal allowance: NOK 43 600 x 2/12 |
- |
NOK |
7 266 |
|
= |
NOK |
80 209 |
| Municipal tax 28 %: NOK 80 209 x 0,28 |
= |
NOK |
22 458 |
| |
|
|
|
| Top Tax |
|
|
|
| Top tax is calculated on personal/gross income for 2 months. |
|
|
|
| The «tax-free» amount for 12 months: NOK 471 200 |
|
|
|
| The «tax-free» amount for 2 months: NOK 78 533 |
|
|
|
| |
|
|
|
| NOK 100 000 – 78 533 = NOK 21 467 x 9,0 % |
= |
NOK |
1 932 |
| |
|
|
|
| National Insurance Contribution |
|
|
|
| Personal/gross income = NOK 100 000 |
|
|
|
| NIS contribution 7,8 % of NOK 100 000 |
|
NOK |
7 800 |
| |
|
|
|
| Total taxes |
|
|
|
| Municipal tax |
|
NOK |
22 458 |
| Top tax |
|
NOK |
1 932 |
| NIS contribution |
|
NOK |
7 800 |
|
= |
NOk |
32 190 |