Withholding tax on pensions and disability benefits applies to: 

• pensions 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

There is no withholding tax on children's pensions for children under 17 at the end of the income year.

The following exemptions from the tax liability apply for persons resident in Australia:

• Persons who can document that they are resident in Australia pursuant to the tax treaty between Norway and Australia are entitled to tax exemption in Norway for pension and for disability benefits from an annuity.
• The tax exemption does not apply to pension earned through work in Norwegian public service and the corresponding proportion of the basic pension when the person is not an Australian citizen.
• Persons who have not earned pension points or accumulated pension reserves in the Norwegian National Insurance Scheme are not liable to tax on pensions and disability benefits from private occupational pension schemes and other private pension schemes and war veteran pensions.

The tax treaty between Norway and Australia

The tax treaty between Norway and Australia regulates the right to tax pensions and disability benefits in articles 17, 18 and 21.

Disability benefits

Disability benefits from annuities (IPA/IPS) are not liable to tax in Norway when you can document that you are tax resident in Australia pursuant to the tax treaty.

Other disability benefits are liable to tax in Norway, cfr. article 21 paragraph 3. This applies to disability benefits from the National Insurance Scheme and disability benefits from public occupational pension schemes, private occupational pension schemes and other private pension schemes (with the exception of annuities).

Pensions

The following pensions are always liable to tax in Norway:

• pensions earned through work in Norwegian public service and the corresponding proportion of the basic pension when the person is not an Australian citizen.

Other pensions are not liable to tax in Norway when you can document that you are a tax resident in Australia pursuant to the tax treaty.

Only persons who can document that they are liable to tax in Australia as residents pursuant to the tax treaty, can be granted tax exemption for pensions/disability benefits that are not liable to tax in Norway pursuant to the tax treaty. You must therefore be able to submit a Certificate of Residence issued by the Australian tax authorities and explicitly stating that you are tax resident in Australia pursuant to the tax treaty with Norway.

A person who is unable to document that he/she is tax resident in Australia pursuant to the tax treaty cannot be granted a tax exemption. All pensions/disability benefits will then be liable to tax in Norway.

Tax deduction card for the income year 2024

If you are of the opinion that all or part of your pension/disability benefit is tax exempt in Norway pursuant to the tax treaty with Australia, you must submit an application for a tax exemption card or a tax deduction card with a lower tax rate than 15 per cent to the tax office.

To apply for a tax exemption card/tax deduction card for 2024, you must:

• state who pays your pension/disability benefit, the type of pensions and the expected gross income split between the different pensions/disability benefits
• state whether you’ve worked for a Norwegian public sector employer and how many years you’ve been employed in the public sector and how many years you’ve been employed in the private sector and/or been self-employed – this applies when you receive a pension
• state how much of the pension is not to be taxed in Norway when the pension is paid by NAV – you could, for example, attach a copy of a payment slip from NAV from a recent month
• inform us of disability benefits from annuity insurance (IPA/IPS)
• include a Certificate of Residence from the Australian tax authorities

The Certificate of Residence must be issued by the Australian tax authorities and explicitly confirm that you are tax resident in Australia pursuant to the tax treaty. The certificate must be an original and no more than three months old.

Applications for a tax exemption card or a tax deduction card with a lower tax rate then 15 percent will be processed as they are received. You will receive information on your tax deduction card (Tax Deduction Notice) instead of a tax deduction card. In this notice you will find information on the estimated tax deduction rate/tax exemption. If only part of the pension/disability benefit is tax exempt, you will receive a tax deduction card with a withholding rate of less than 15 per cent. You are not to send this notice to the payers of the pension/disability benefit. They collect the tax deduction card/tax exemption card online from the tax authorities. The Tax Deduction Notice will be sent to your registered address in the National Registry. If you are an electronic ID, you'll receive the Tax Deduction Notice in your inbox.

If you had a tax exempt pension/disability benefit in 2021 and/or you received a tax exemption card or a tax deduction card with a lower tax rate than 15 per cent for the income year 2022, you do not need to apply for a tax exemption card/tax deduction card for the income year 2023. The tax office will issue a new tax exemption card/tax deduction card on the basis of the information the tax office has about your tax liability.

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

You must apply for a new tax deduction card when you:

• move from Australia or your tax liability to Australia ceases for other reasons
• receive a new pension/disability benefit from Norway
  • This also applies when you receive a different pension/disability benefit from the same payer as your current pension/disability benefit.

If the whole pension/disability benefit is tax exempt and you receive a tax exemption card, you can apply for a refund of the tax deducted. For more information, see refund of withholding tax on pensions and disability benefit.

The tax assessment for the income year 2023

Persons covered by the provisions on withholding tax on pensions and disability benefits will receive a Norwegian tax return in April 2024.

If you are of the opinion that all or part of your pension/disability benefit is tax exempt in Norway you must submit the tax return and state which income is liable to tax in Norway.

The tax office may request that you submit a Certificate of Residence that explicitly confirms that you are tax resident in Australia pursuant to the tax treaty with Norway. The tax office may also request that you submit documentation stating which part of your pension/disability benefit that is tax exempt in Norway.

The Certificate of Residence must be issued by the Australian tax authorities. It must be an original and no more than six months old. 

If you have not received the Norwegian tax return before 15 April 2024, you can contact Tax Administration Norway.

If you’ve not accrued pension points or earned a pension balance and have private pensions/disability benefits and war pension

If you’ve not accrued pension points or a pension balance in the Norwegian National Insurance Scheme, you’re not liable for tax in Norway on pension and disability benefits from private occupational pension schemes and other private pension schemes. Nor do you have tax liability for war pension.

If this applies to you, you can apply for a new tax deduction card.

The rules on withholding tax on pensions and disability benefits only apply if you’re no longer a resident for tax purposes in Norway. If you’re still a resident for tax purposes in Norway pursuant to the Taxation Act, you’ll be taxed according to the general rules. The provisions in the tax treaty will also apply to you.

All enquiries relating to withholding tax on pension must be addressed to: