Item 2.1.1

2.1.1 Pay and payments in kind etc.

Applies to the income year 2017

This item shows how much you have received in pay and any other benefits such as fees, work assessment allowance and sickness benefit from NAV. The total will normally be pre-filled with the amount that has been reported, so you should check that everything is correct.

Does this item concern me?

Item 2.1.1 concerns virtually everyone, except pensioners who do not work and those who, for example, only live on managing their own capital or who are self-employed.

If you receive a salary or other benefits from an employer of up to NOK 1,000 during the income year, you will not pay tax on the amount and will not need to enter anything under this item. Read more about tax-free odd jobs.

If you receive more than NOK 1,000, the entire amount will be taxable, and you will have to fill in this item if it is not shown there. It is when the salary is paid that determines which income year the salary is to be declared under.

Holiday pay

Your holiday pay is taxable, so this pay must also be entered under this item.

Have you carried out private work assignments?

If you have carried out a private work assignment for a person linked to his or her home or holiday home for which the payment exceeds NOK 6,000, this amount must be entered as taxable income under the item. If you are self-employed, the payment must be included as business income regardless of the amount and entered in the income statement.

Benefits are basically everything other than pay which constitutes benefits associated with your job. They are therefore considered to be a supplement to pay and are taxable. Some benefits have already been pre-filled, while you will have to enter others yourself. Some examples of benefits are:

  • Free use of car outside working hours
  • Free newspaper, mobile telephone subscription, broadband
  • Air miles
  • Free or subsidised accommodation
  • Free work clothing
  • Paid expenses for holiday travel
  • Favourable loan from employer
  • Benefits gained upon the redemption or sale of options which give entitlement to the purchase or sale of shares or primary capital certificates to or from your employer.
  • Day care for your children either paid for or covered otherwise.

The total amounts which you must enter will be shown on your payslips or annual statement.

How do I enter this in my tax return?

The item will normally be pre-filled with what you have earned. The totals are based on what was reported by the one who pays you, so you should check that everything is correct.

The amounts you must check against can be found in the annual statement of earnings, allowance and tax which you receive from your employer in January

If the amount is wrong, you must correct the tax return. You should also contact your employer to ensure that the annual statement is correct.

If you have worked abroad for a Norwegian employer, the employer should have reported your wages for this work in the a-melding as work carried out abroad. If the income is missing or reported incorrectly, you must:

  • enter the wages in this item, or correct the item
  • inform your employer that they must send a correted report in the a-melding
  • tick "Yes" in item item 1.5.6. if you are claiming a deduction from Norwegian tax or relief from Norwegian tax on the salary you have earned abroad.

If you have worked abroad for a foreign employer, you must:

  • enter the wages under this item
  • tick "Yes" in item item 1.5.6. if you are claiming a deduction from Norwegian tax or relief from Norwegian tax on the salary you have earned abroad.

If you have paid tax abroad, there are rules and tax agreements to prevent you from paying tax on the same invome in both countries. For an application for credit deduction (deduction for tax paid in another country) you must fill out form RF-1147.

If you work stay abroad has a duration of at least 12 months, check whether you can apply for the tax reduction according to the one-year-rule. If so, you must fill out form RF-1150. You must also fill out RF-1150 if the tax agreement between Norway and the work country is a distribution agreement.

Documentation requirements

If you are claiming a deduction for tax paid abroad, you must complete and send in RF-1147E Deduction for tax paid abroad by a person - credit deduction together with the tax return. If you claim deduction, offset and tax paid in the other country must be documented.

If you are claiming a reduction in tax under either the one-year rule or a tax treaty, you must fill in and submit RF-1150 Reduction in income tax on wages together with the tax return. If we ask, you must be able to document that you meet the conditions of tax reduction.

If you change, delete or add information concerning pay and/or other benefits and we ask to see documentation, you must be able to document this through an annual statement or other confirmation from your employer.

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