Lump-sum payment from an IPS or IPA
Concerns lump-sum payments pursuant to the Act on individual pension schemes (IPS) and in accordance with a pension agreement pursuant to the Tax Act (IPA).
Brief information about lump-sum payments from an IPS or IPA
Specify lump-sum payments pursuant to the Act on individual pension schemes (IPS) and in accordance with a pension agreement pursuant to the Tax Act (IPA).
Exceptions:
You must specify lump-sum payments from the new scheme on individual savings for pensions (see Section 6-47 A of the Ministry of Finance's Regulations pursuant to the Tax Act (FSFIN), which entered into force on 1 November 2017) in RF-1301 (Basic data – individual pension schemes).
The information you must provide
| Amount | NOK x |
| Type of salary or benefit | Cash benefit, IPAor IPS lumpsum payment |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | No |
| Tax and contribution rules | If relevant |
| Additional information | - |
Amount
Specify the gross amount.
Type of salary or benefit
Specify “cash benefit” and “IPA or IPS lumpsum payment”.
Subject to withholding tax
The benefit must always be specified as subject to withholding tax.
With effect from 1 June 2017, payments from an individual pension agreement, including IPAs, are no longer exempt from the obligation to withhold tax. The exception in Section 5-6-17 (f) of the Tax Payment Regulation has been abolished.
You do not need to make withholding tax deductions if the amount to be deducted is below the minimum thresholds for withholding tax.
In the case of a decedent’s estate, the one-off payment is not considered to constitute personal income. The decedent’s estate will be liable to pay tax on the gross amount according to a special rate which is determined annually through the Norwegian Parliament’s decision concerning taxes; see Section 5-40 fourth paragraph of the Tax Act and Section 3-7 of the State Tax Decision. The payer must make deductions at the special rate.
Basis for employer's national insurance contributions
You do not calculate employer’s national insurance contributions on the benefit.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rules:
This tax and contribution rule concerns income recipients who:
- are not resident in Norway for tax purposes, and
- pay withholding tax on pensions
You must specify “withholding tax on pensions” for the associated withholding tax.
Don't use the tax- and contribution rule or specify a description on withholding tax on pensions on foreign workers that fall under the PAYE scheme (Pay As You Earn).
See detailed information on withholding tax in the a-melding
See also the detailed information concerning withholding tax on pensions
This tax and contribution rule concerns:
- income recipients who are covered by the Svalbard Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Svalbard” for salary and other benefits.
You must also specify "Svalbard" for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Svalbard regarding trade union fees, premium for pension scheme, National Insurance premiums and education and development fund premiums and portacabin rent.
Additional information
No additional information.
Earnings period (voluntary)
You can specify the earnings period for all types of salary and other benefits in the a-melding. Both the start date and the end date of the earnings period must fall within the same reporting month.
See also the explanatory information concerning the earnings period
When to report
Report the benefit in the calendar month in which you paid the amount.
Correcting errors
| MAGNET_EDAG-114 Invalid value |
| MAGNET_EDAG-114B Invalid value for this calendar month |
| MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
| MAGNET_EDAG-230B Invalid value |
| MAGNET_EDAG-243 Information on earnings period is invalid |
| MAGNET_EDAG-260 Start and end date for the back payment period must be within the same year |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
NAV uses the information in checks.
The Norwegian Tax Administration uses information concerning pension and national insurance contributions to assess income. The amount is aggregated with other benefits and transferred to the tax return.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
