Children under 17 during the income year who live with their parents:
Children who have not yet reached 17 years of age must generally be assessed together with their parents.
This means that if you have a child under 17, any income and capital that the child might have must be added to your income and capital in your tax return and included in the tax calculation. If the parents live together, the child's capital and income must generally be assessed with half being allocated to each of you. This applies regardless of whether you are spouses or spouse-equivalent cohabitants. However, you can request a different allocation.
If you and the child do not live with the other parent, the child's capital and income must generally be assessed under the parent with whom the child is registered in the population register as residing at the end of the income year. If the child lives with you and you are married to someone other than the child's other parent, the child will be assessed with half being allocated to each of you and your spouse. You can ask for the child to be assessed under the child's mother/father only.
Employment income of children aged 13 or over who are assessed with their parents
A special rule applies to employment income of children aged 13 or over who are assessed with the parents The child must be assessed separately for all employment income. Note that separate tax assessment is not the same as independent tax assessment. In the case of separate tax assessment, the child will only receive their own tax return for the employment income, even when the employment income originates from the parents' business. The child will have their own tax settlement for the employment income. All other income received by the child, e.g. interest income or children's pension, and the child's capital must still be assessed together with the parents, i.e. it must still be declared in the parents' tax return. Only the employment income will be entered in the child's tax return.
Children under 17 during the income year who do not have parents who are alive or who live apart from their parents
Children who do not reach 17 years of age during the income year and who do not have parents who are alive are independent taxpayers and must submit their own tax return. The child will then be assessed independently and must pay tax on their taxable income and capital. The same applies where the child does not live with their parents because both parents have had their parental responsibility or care and control taken away from them. In these cases, the guardian will be responsible for submitting the tax return.
Tax class/personal allowance in connection with independent tax assessment
Children and young people who are assessed independently as single taxpayers have their own personal allowance in tax class 1. The personal allowance is a general basic allowance/tax-free amount using when calculating tax on ordinary income, i.e. all types of income (salary, pension, capital and business income).
The personal allowance must not be entered in the tax return, but will be automatically included in the tax calculation. For the 2016 income year, the personal allowance is NOK 51 750 (tax class 1). If the child/young person has been resident in Norway for part of the year only, the personal allowance will be reduced proportionately.
If the child is assessed together with one or both of their parents, the child will not have their own personal allowance in the parents' ordinary income.
Separate tax assessment of employment income or interest on compensation/insurance
However, a separate personal allowance will be given in the case of the separate tax assessment of employment income (children aged 13-16) - see above - and the separate tax assessment of interest on compensation/insurance payments - see below.
Tax-free amount in wealth taxation
Children under 17 who are assessed independently receive their own tax-free amount when the wealth tax they are liable to pay is calculated.
Children under 17 who are assessed together with their parents do not receive their own tax-free amount in the wealth tax calculation.