As an employer, you are obliged to deduct payroll withholding tax

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In Norway, all employees must pay tax as their salary is earned and paid. Employers are responsible for ensuring that payroll withholding tax is deducted.

Your obligations as an employee to deduct payroll withholding tax can be summarised under six points:

  1. you must retrieve the employee’s tax deduction card electronically from the Norwegian Tax Administration
  2. you must calculate the basis for the calculation
  3. you must apply the tax deduction card to the calculation basis in order to find the correct payroll withholding tax to be deducted
  4. you must ensure that tax deduction card information is updated for each payroll run
  5. in connection with each payroll run, you must deduct payroll withholding tax from the employee's gross salary, deposit the payroll withholding tax in a tax deduction account and then transfer the amount to the tax collector
  6. you must document the payroll withholding tax to the employee

What do I do if an employee wants to deduct more tax than is shown on the tax deduction card?

You do not need a new tax deduction card from the tax office. The employee can contact the employer/payroll office, or alternatively NAV/your pension provider, and ask for more tax to be deducted.

The Tax Payment Act (Chapter 5 Section 5-5 second paragraph) stipulates that employees must deduct more tax if the employees so requests.

Useful tools for calculating the correct amount of payroll withholding tax and paying tax

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