Financial-sector employers are to be subject to a new 5 percent payroll tax on employee wages starting Jan. 1, 2017, the Norwegian Ministry of Finance said Dec. 22. Additionally, financial-sector employees are to be exempt from a new general individual income tax rate, the ministry said in a news release detailing major upcoming changes.
The new Financial Activity Tax is to apply to companies that have at least 30 percent of their activities in the financial sector, as defined by the government research group Statistics Norway. Individual salaries of financial-sector workers are to maintain the basic income tax level from 2016 of 25 percent, the ministry said.
Income, Social Tax Changes
The general individual income tax rate, which consists of state, county and municipal taxes and is imposed at a flat rate on all income, is to decrease for nonfinancial-sector workers to 24 percent from 25 percent starting Jan. 1.
The tax rates and threshold for the surtax, or top tax, which is imposed on amounts greater than the basic threshold also are to change:
•The first personal income tax bracket is to increase to 164,100 krone ($18,861) from 159,800 krone ($18,367), and the tax rate is to increase to 0.93 percent from 0.44 percent.
•The second income tax bracket is to increase to 230,950 krone ($26,545) from 224,900 krone ($25,853), and the tax rate is to increase to 2.41 percent from 1.7 percent
•The the third income tax bracket is to increase to 580,650 krone ($66,739) from 565,400 krone ($64,995), and the tax rate is to increase to 11.52 percent from 10.7 percent
•The fourth bracket is to increase to 934,050 krone ($107,373) from 909,500 krone ($104,551), and the tax rate is to increase to 14.52 percent from 13.7 percent
The contribution rates for social security wages are to remain unchanged, but the threshold is to increase to 54,650 krone ($6,282) from 49,650 krone ($5,706).
The tax exemption amount for employee purchases of employer shares is to increase to 3,000 krone ($344) from 1,500 krone ($172).
To contact the reporter on this story: Jared Mondschein at firstname.lastname@example.org
To contact the editor on this story: Michael Trimarchi at email@example.com
The 2017 tax changes are available in Norwegian at https://www.regjeringen.no/no/aktuelt/regelendringer-fra-1.-januar-2017/id2524874/.
More information on payroll issues in Norway is available in the Norway country primer.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)