3.3.5 Deductible payments to individual pension scheme (IPS) – Norwegian and foreign pension schemes

Item 3.3.5 Applies to the tax year 2016

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This item covers deductible payments made to individual pension schemes (IPS) in Norway and another EEA State.

The item covers payments to foreign pension schemes which do not meet the Norwegian requirements under the Act on individual pension schemes (IPS).

Does this item concern me?

Payments to an individual pension scheme (IPS) in Norway

The following applies if you have made payments to an individual pension scheme yourself:

  • the payment must have been made before the end of the income year,

  • you must have entered into an agreement concerning an individual pension scheme with an institution which is licensed by the relevant Norwegian authority to carry on such activity.

If you have been taxed for the benefit of your employer paying into an individual pension scheme, the payment must have been made before the end of the income year.

Payments to an individual pension scheme in another EEA State

If you are a citizen of another EEA State and receive income from work or commercial activity in Norway, you may be entitled to a deduction for payments made to such a foreign pension scheme. You may be entitled to deductions either for payments made directly to the pension scheme or for payments made through your employer deducting your salary.

The conditions for the deduction entitlement are that:

  • the pension scheme is established with a company or facility in another EEA State,
  • you were a member of the scheme for at least one year before the obligation to pay tax to Norway arose,
  • the foreign pension scheme gave entitlement to deductions in the other EEA State, and
  • retirement pension is both a mandatory benefit and a main benefit in the foreign pension scheme.

It is a requirement that Norway has entered into an agreement concerning the exchange of information with the other EEA State in which the pension scheme is established. If no such agreement is in place, it will be sufficient for you to present a declaration upon request from a public authority in the other State which confirms circumstances of importance for the deduction entitlement.

If you are a member of both a Norwegian and a foreign pension scheme, you will only be entitled to deductions for payments made to the Norwegian scheme.

Rates and key figures

Contributions to individual pension schemes (IPS) in Norway

The annual deposit and the annual deduction can only amount to NOK 15,000 per year.

Contributions to individual pension schemes in another EEA State

If you are a member of both a Norwegian and a foreign individual pension scheme, you will only be entitled to deductions for contributions made to the Norwegian scheme.

If you do not have a Norwegian individual pension scheme, you may be entitled to deductions for your contributions to a foreign individual pension scheme. The upper limit for deductions will then follow from the Norwegian Act relating to occupational pensions. In the case of operators, the deduction will be limited to the maximum contribution allowable under the Act relating to occupational pensions.

How do I enter this in my tax return?

Payments to an individual pension scheme (IPS) in Norway

The item will normally be pre-completed with the total amount that has been deposited. This total is based on what has been reported by the company you have your pension scheme with, or the employer who made the deposits on your behalf.

It is important that you check that everything is correct. The amounts you must perform the check against will be shown in

  • the annual statement if you have made payments directly to the institution

  • or in the annual statement of earnings, allowance and tax which you receive from your employer if your employer makes the payments on your behalf.

The amount is wrong

Change the amount if it is wrong. You should also contact the institution you have entered into the agreement with, or your employer, to ensure that the statement will be correct.

What if information is missing?

If any information is missing, you must enter the name of the company concerned and the deductible amount under the item.

Log in and fill in the item.

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Payments to an individual pension scheme in another EEA State

You must enter the deductible payment yourself. You must also state the EEA State in which the pension scheme is established, the name of the pension provider and the start-up date of the pension scheme in the EEA State.

Log in and fill in the item.

How to change to english version of Altinn.

Documentation requirements

You do not need to send us documentation of this, but you must be able to present documentation which shows that you, the pension provider and the pension scheme meet the requirements that are imposed for the deduction entitlement, if the tax office asks to see it.

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