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TAXES

What happens if you don’t file your Norwegian tax return on time?

Generally speaking, you must check and submit your tax return in Norway by April 30th this year. But what happens if you don't make the deadline?

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Here's what you should do if you are unable to meet Norway's tax return deadline. Photo by Ellie Ellien on Unsplash

It’s tax return season in Norway, which means that many people have already submitted the final version of their tax return to the Norwegian Tax Administration (Skatteetaten).

We say “many” and not “most,” as every year, a number of people wait until the very last minute to submit their tax returns.

READ MORE: Five things to do when you check your tax return notice in Norway

While the Norwegian authorities warn people to avoid doing everything in the last few days, the advice usually falls on deaf ears.

In 2023, up to 1.4 million people in Norway didn’t even open their tax return notices by April 25th, just a week before the deadline expired.

This year, the deadline falls on April 30th.

Why waiting until the last minute could get you in trouble

There are two reasons why waiting until the last moment to submit your tax return is a bad idea.

Firstly, you’ll have a harder time reaching the Tax Administration in case of any questions or doubts.

Secondly, the website of the Tax Administration might experience issues when a huge number of users try to submit their tax returns in the final days before the deadline expires.

While tech issues don’t happen every year, in 2023, Norwegian tax authorities announced they would consider extending the deadline for submitting this year’s tax return due to such problems.

They might show similar flexibility in 2024 if people report being unable to access the site and submit their tax returns.

Timely tax return submission can help you avoid such headaches.

What to do if you can’t make the deadline

If you realise that you don’t have enough time to submit your tax return by April 30th – for any reason – contact the Tax Administration and apply for a postponement as soon as possible.

Most taxpayers who do so get an automatic postponement of 30 days.

But what happens if you don’t submit the tax return in time?

The consequences of breaking the deadline

As the Tax Administration explains on its website, tax returns not submitted by this year’s deadline will be considered as having been submitted with the pre-completed information (sent to all taxpayers in Norway in March).

This means that you may being missing out on potential deductions, which could mean that the tax administration owes you money. It could also mean that you could end up owing the tax administration money as the information in the partially-completed form wasn’t correct. 

If you’re not getting a return but instead need to pay additional taxes, try to do so by May 31st.

Should you fail to pay by the deadline, you will have to pay interest on the tax you owe the Norwegian state.

If you’re late with your tax return submission, you’ll likely have problems contacting the Tax Administration, as they will be overwhelmed in the days around the April 30th deadline.

However, the authorities have created a number of useful guides that can help taxpayers when it comes to issues often brought up in the submission process, available on the web pages of the Tax Administration.

Try to check your preliminary tax return and submit the updated version in early or mid-April – that will make the entire experience much smoother and less stressful.

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TAXES

Will Norway’s new exit tax slow the exodus of ultra-rich from the country?

You can check out -- but you still have to pay! Norway is looking for ways to hang onto its ultra-rich who are increasingly moving abroad to escape one of the rare European countries to impose a wealth tax.

Will Norway's new exit tax slow the exodus of ultra-rich from the country?

Industrialist Kjell Inge Røkke, former cross-country ski legend Bjørn Dæhlie, and the father of football star Erling Haaland are among the dozens of super-wealthy who have packed up and left in recent years.

The reason? The centre-left government in power since 2021 has hiked the wealth tax from 0.85 percent to one percent — and to 1.1 percent for the very wealthiest — and raised the dividend tax.

Norway, Spain and Switzerland are the only European countries that have a tax on net wealth. In Norway it also applies to unrealised capital gains (gains not yet realised through the sale of shares, for example).

Owners of companies are among those hit hardest, often drawing a modest salary even though their company has a high value.

“If your salary is one million and you have to pay three million in (wealth) tax, it’s clear that it’s untenable,” said Tord Ueland Kolstad, a real estate magnate who “grudgingly” moved to Lucerne, Switzerland in 2022.

“The system is designed so that it confiscates more than what you can produce,” he said.

To pay a wealth tax which can exceed their yearly income, entrepreneurs often need to take out dividends, hampering their company’s capacity to invest.

And those dividends are also subject to a tax rate of 37.84 percent.

“So basically you have two options: either leave Norway, or sell your company,” said Kolstad.

‘Breach of the social contract’ 

Between 2021 and 2023, more than 100 of Norway’s wealthiest people went into exile, with the large majority relocating to Switzerland.

Others transferred their wealth to heirs already residing abroad, as Norway does not have inheritance tax.

Labour Prime Minister Jonas Gahr Støre has criticised the mini-exodus, stressing that taxes are what pay for Norway’s generous welfare system.

“When you’ve made your wealth in Norway, put your kids in school, benefitted from the health care system, driven on the roads and reaped the rewards of its research, it’s a breach of the social contract,” he said in a speech in parliament.

The government is now working to tighten the country’s “exit tax”.

People who move abroad would have 12 years to pay the exit tax — also 37.84 percent of gains made in Norway from shares and other sources over many years — that has until now been easy to circumvent or defer.

“The aim is that gains made in Norway be taxed in Norway,” explained Erlend Grimstad, a state secretary in the finance ministry.

“Our nurses and teachers have to hand over a large share of their earnings to society in the form of taxes,” he said.

“If they see that the most well-off can simply avoid contributing their share by leaving the country, that undermines the legitimacy of the tax system.”

‘Don’t come to Norway’

That does little to quell the anger of the ultra-rich.

Christer Dalsbøe, who started his own company, made buzz on social media recently singing a little ditty discouraging other entrepreneurs from starting businesses in the country.

“Don’t come to Norway, We will tax you till you’re poor. And when you have nothing left, We will tax you a little more,” he sang, sitting at a piano.

The liberal think tank Civita said the government’s plans to tighten the “exit tax” were in reality aimed at setting up roadblocks for millionaires and billionaires.

“Instead of attacking the reasons that push them into exile, meaning easing the tax burden on Norwegian shareholders, they seem to prefer to set up regulatory obstacles,” said Civita economist Mathilde Fasting.

In Lucerne, Tord Ueland Kolstad said he can receive “several calls a week” from other Norwegians considering moving to Switzerland.

“The flow has not stopped. Maybe it is just beginning.”

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