What is the eligibility for Standardfradrag for foreign employees in Norway?

Question

When moving to Norway in December but starting employment in January, I am wondering about how one is eligible to the standardfradrag for utlanske arbeidstakere in Norway.

The brochure claims that one is only allowed to apply the tax in the first two years of residence which, in my book, would include the year of moving. Thus by moving "too early", I would loose an entire year of tax reduction. However, I wonder if it makes a difference since one only started to work in January.

I, of course, asked the tax office. They told me they did not really know and I should try to claim the tax reduction which will be refused if I am not eligible to it any more. However, getting a huge bill is not the greatest way of finding out about the actual tax you are supposed to pay.

This must have happened before. Any experience on this matter?

Answer 1

The Norwegian Tax Administration is obliged to give a binding "forhåndsuttalelser" (advance rulings). Questions that you want to get an advance ruling on, have to be quite specific questions.

From what I understand from the brochure is that the first year, you will be under the "Begrenset skattepliktig" category (limited taxable). Where you can get 1/12 per month of the standardfradrag (max 40 000 NOK) you stay in Norway. You are under the limited taxable category, when you stay in Norway less than 183 days of the year. You will, when you stay in Norway more than 183 days of the year, be seen under the "Skattepliktig som bosatt i Norge" (Taxable with residency in Norway), get the standardfradrag for two years.

You will not get the standardfradrag automatically, but will have to add it to the tax return.

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Answer 2

I moved in January 2013 and did not get a tax report before today (March 2014) (because the "Selvangivelse" cares only about the previous year).

I am then going to "submit" the tax report with some modifications (basically applying for the standard tax deduction for foreigners).