Common questions about withholding tax

Read more about the tax deduction card here

You must pay withholding tax on disability benefits when you live abroad and you are not tax resident in Norway. This applies when you receive disability benefits from NAV (the Norwegian Insurance Scheme) and when you receive disability benefits from other schemes.

There are a few exceptions to the tax liability.

Read more about withholding tax on pensions and disability.

Only persons who are not tax residents of Norway are required to pay withholding tax on pensions and disability benefits. Persons who remain tax residents of Norway shall be taxed in the same way as persons living in Norway.

Read more about tax residence when moving from Norway.

You must contact the tax authorities in the country you are moving to for information on your tax liability there.

You shall pay withholding tax on your pension/disability benefits until the time that you become a tax resident of Norway. From the time that you become a tax resident of Norway, you shall be taxed in accordance with the ordinary provisions that apply to persons living in Norway. 

Read more about tax residence when moving to Norway.

The party paying the pension/disability benefits shall deduct 15 percent tax if you have not applied for and been issued a tax deduction card with a lower deduction rate or a tax exemption card.

If you are entitled to tax exemption or a lower tax rate, you must apply to the The Norwegian Tax Administration for a tax exemption card or a tax deduction card with a lower deduction rate. You must also submit documentation showing that all of or part of your pension should be exempt from taxation in Norway.

Read more about withholding tax on pensions and disability.

Tax withholdings will continue until your application has been processed and the one that pays the pension/disability benefits has obtained the new tax deduction card/tax exemption card electronically from the tax authorities. You will receive a tax notice showing the tax rate/tax exemption card. You do not need to submit anything to the one that pays the pension/disability benefits.

If 15 per cent tax is not being deducted from your pension/disability benefit, you must contact the The Norwegian Tax Administration and apply for a new tax deduction card.

No, Norway has signed tax treaties with many countries. The tax treaties contain provisions that ensure you will not pay tax on the same income in both Norway and your country of residence. Which country you pay tax to varies. This follows from the individual tax treaty. 

When the pension/disability benefits is taxable in Norway, it is the country of residence that is responsible for ensuring that double taxation does not take place. This can be ensured by either not taxing the Norwegian pension/disability benefits or by granting a deduction for the Norwegian tax in connection with taxation in the resident country. Contact the tax authorities where you live for more information.

The liability to pay tax on your pension/disability benefits does not give you any special rights in Norway. There is no direct connection between tax liability and access to various publicly financed benefits and welfare services. This applies both to persons living in Norway and to persons living abroad.

The right to health services etc. from NAV is dependent on membership of the Norwegian National Insurance Scheme. Paying tax does not make you a member of the National Insurance Scheme.

All questions about National Insurance contributions and membership of the Norwegian National Insurance Scheme must be raised with:

NAV Medlemskap og avgift
P.O Box 6600 Etterstad
NO-0607 OSLO

or telephone number 21 07 37 00

In principle you are liable to pay tax on your Norwegian pension/disability benefits, even if you are a tax resident of another country. It is not possible to provide a general answer to whether or not you are entitled to a tax exemption. The most common bases for reducing the tax rate to less than 15 percent are:

• Your pension/disability benefits is fully or partially exempt from tax under the tax treaty with the country where you are resident.
• You may be entitled to a reduced tax rate if you’re resident in another EU/EEA country and at least 90 percent of your income is taxable in Norway (the 90 percent rule set out in section 6-71 of the Taxation Act) Withholding tax – Persons resident in EEA countries (EU/EFTA) – the Tax Administration
• You may be entitled to a reduced tax rate if you’re resident in another EU/EEA country and your income is so low there that you’re unable to use your right of personal deductions (limitation of withholding tax pursuant to section 17-10) Opportunity for limitation of withholding tax on pension and disability pension – the Tax Administration
• There is no withholding tax on children's pensions for children under 17 at the end of the income year.
  
  Read more about withholding tax on pension and disability benefits

In principle, you cannot choose to pay tax pursuant to the rules that apply to residents of Norway. The withholding tax on pensions/disability benefits is a flat tax rate of 15 percent. No income deductions are granted.

If you are resident in another EU/EEA country and liable to pay tax in Norway for at least 90 percent of your income, you can request to have your tax assessed according to the same provisions that apply to persons resident in Norway. Low pensions/disability benefits, which are exempt from tax for persons resident in Norway, will then also be exempt from tax for persons resident in another EU/EEA state. Different conditions apply to the right to general deductions, deductions for interest on debt, tax deduction for pension income for retirement pensioners and reduction in tax pursuant to Norwegian tax limitation rules.

Read more about withholding tax on pensions and disability benefits.

No, the total pension/disability benefit is liable to tax. There is no tax-free allowance.

If you are entitled to full or partial tax exemption under the tax treaty with the country where you are resident, you can contact the The Norwegian Tax Administration and apply for a tax exemption card or a tax deduction card with a lower deduction rate than 15 per cent.

The same applies if you are resident in another EU/EØS state and pay tax in Norway on at least 90 percent of your income.

You must provide documentation that you meet the conditions for tax exemption or a lower tax rate than 15 percent.

Read more about withholding tax on pensions and disability benefits.

You may be entitled to an extended deduction if you are resident in an EU/EEA country and the income in your country of residence is too low to allow you to exercise the right to personal deductions there.

In principle, excess tax deducted will be refunded in connection with the tax settlement next year.

If your whole pension/disability benefits is tax exempt because you are not liable to tax on your pension in Norway, you can apply for a refund of the tax that has already been deducted.

Read more about Refund of deducted withholding tax on pensions.

When you first apply for tax exemption or for a tax deduction rate of less than 15 percent, you must

• enclose a Certificate of Residence.

The Certificate of Residence must be issued by the tax authorities in your country of residence and it must explicitly confirm that you are resident there for tax purposes pursuant to the tax treaty with Norway. The certificate must be an original and no more than six months old.

You must also submit other documentation where this is required. Read more about withholding tax on pensions and disability benefits.

The Tax Administration will produce a new tax exemption card based on the information we have about your tax liability.

If you previously received an exemption card/a tax deduction card with a tax rate under 15 percent, you’ll receive this next year too.

Exceptions: If you have a D number, this must be active for you to be entitled to a tax deduction card. The D number is inactivated every five years. To activate the D number, you must send us valid identification. Read more about this

If you believe your tax deduction card is incorrect, you must apply for a new one.

If you move from the country where you live, or if you for other reasons no longer have a tax liability there, you must apply for a new tax deduction card.

You will receive a tax return in March or April every year.

If you believe that all or part of your pension or disability benefit is tax free in Norway, you must submit your tax return and state which amount is taxable in Norway. You should not set the amount to NOK 0 but rather mark the exempt amount as «non-taxable withholding tax on pension.» If you receive several pensions, the same must be considered for each pension.

If only part of the pension is tax free, the card for this (previously referred to as an item) must be split, so that you can provide information on whether the different parts of the pension are taxable or tax free.

If you do not submit the tax return, it will be regarded as submitted with the pre-filled information. 

The Tax Administration may require that you submit documentation that shows that you are entitled to tax exemption in Norway.

The deadline for submitting your tax return is 30 April.

The tax return is sent by post at the end of March/beginning of April in the year following the income year. If you have not received the tax return by 15 April, you can contact the Norwegian Tax Administration and ask for a copy.

You can contact the Norwegian Tax Administration in one of the following ways:

All those who pay withholding tax on pension/disability benefits, will receive their tax assessment during autumn at the latest.

When you have moved to a new address abroad, you must inform The Norwegian Tax Administration in writing of your new address.

You must enclose a copy of valid proof of identity that contains your date of birth, name, signature and photo.

If you change your name while living abroad, you must fill in the form for change of name and send it to the Population Register in Hammerfest:

 

You must enclose documentation of your new name from the authorities in your country of residence.

Written queries about withholding tax on pensions/disability benefits and original documents must be sent to:

Remember to state case number or personal ID number / D number.

E-mail: You can log in and send us a message  

Your tax return with enclosures must be sent to the:

Norwegian Tax Administration
P.O. Box 4305
NO-8608 Mo i Rana.