Item 3.2.12

3.2.12 Premiums for job-related pension schemes

Applies to the income year 2018

This item covers deductible payments made to pension schemes in Norway and another EEA State.

The item covers payments made to a foreign pension scheme which does not meet the Norwegian requirements under the Act relating to company defined benefits, the Act relating to defined-contribution pensions or the Act relating to occupational pensions.

Does this item concern me?

You get a deduction for paid premium into:

  • Municipal pension scheme
  • Norges Bank’s pension fund
  • pension scheme to company defined benefits
  • pension scheme to defined-contribution pensions
  • pension scheme to occupational pensions
  • pension scheme in state enterprises
  • in the Norwegian Public Service Pension Fund, or
  • in a pension scheme agreed in a collective agreement.

 

If you are a citizen of another EEA State and receive income from work or commercial activity in Norway, you may be entitled to a deduction for payments made to such a foreign pension scheme. You may be entitled to deductions either for payments made directly to the pension scheme or for payments made through your employer deducting your salary.

The conditions for the deduction entitlement are that:

  • the pension scheme is established with a company or facility in another EEA State,
  • you were a member of the scheme for at least one year before the obligation to pay tax to Norway arose,
  • the foreign pension scheme gave entitlement to deductions in the other EEA State, and
  • retirement pension is both a mandatory benefit and a main benefit in the foreign pension scheme.

Norway must have entered into an agreement to exchange information with the other EEA state where the pension scheme is established. If there is no such agreement, it will be sufficient for you to present a declaration upon request from a public authority in the other state that confirms circumstances of importance for the deduction entitlement.

If you’re a member of both a Norwegian and a foreign pension scheme, you’ll only be entitled to deductions for payments made to the Norwegian scheme.

The upper limit for deductions follows from the Act relating to occupational pensions. If you are self-employed, the deduction will be limited to the maximum contribution allowable under the Act relating to occupational pensions.

How do I enter this in my tax return?

The item will normally be pre-filled with the amount you have paid in premiums. The amounts are based on what have been reported by your employer, so you should check that everything is correct.

The amounts you should perform the check against will be shown in the annual statement of earnings, allowance and tax which you receive from your employer or income payer in January.

If the amount shown is wrong, you must change it in the tax return. You should also contact your employer to ensure that the annual statement of income, deductions and tax deductions are correct.

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You must enter the deductible payment yourself. You must also state the EEA State in which the pension scheme is established, the name of the pension provider and the start-up date of the pension scheme in the EEA State.

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Documentation requirements

You do not need to send us any documentation concerning this, but you must be able to present it upon request.

You do not need to send us documentation of this, but you must be able to present documentation which shows that you, the pension provider and the pension scheme meet the requirements that are imposed for the deduction entitlement, if the tax office asks to see it.