Pensions and disability benefits paid from Norway to persons who are not tax resident in Norway are liable to tax in Norway. This means that you are liable to tax in Norway on Norwegian pensions and Norwegian disability benefits even if you are deemed to have moved from Norway for tax purposes or have never been resident in Norway. The tax is 15 per cent of the gross pension/disability benefit.
Withholding tax on pensions and disability benefits covers:
- pension from the National Insurance scheme
- public occupational pensions
- private occupational pensions
- other private pensions
- disability benefits from the National Insurance Scheme
- disability benefits from other schemes
The payer of the pension/disability benefit shall deduct 15 per cent tax from the gross pension/disability benefit.
There are a few exceptions to the tax liability:
- You are not liable to pay tax on pensions and disability benefits from private occupational pension schemes and other private pension schemes if you have not earned pensions points or accumulated pension reserves in the National Insurance scheme.
- You may be entitled to full or partial tax exemption pursuant to the tax treaty with the country in which you are resident.
You may be entitled to a lower tax rate than 15 per cent if you live in an EU/EEA country and at least 90 per cent of your income is liable to tax in Norway.
Pensions paid to children under the age of 17 are not liable to tax.
How do you avoid double taxation
If your pension or disability benefit is liable to tax both in Norway and in the country where you are resident, it is your country of residence that must ensure that the pension/disability benefit is not subject to double taxation. The tax settlement notice you receive in October shows how much tax you have paid in Norway. The tax settlement notice can be used as documentation in relation to the tax authorities in your country of residence.