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Do you live in Norway and work in another Nordic country for a public sector employer?

This applies to you who live in Norway and work in another Nordic country for a public sector employer. The information only applies to tax on earned income.

Definition of "public sector employer"

You are deemed to have a public sector employer when you are employed by the central government, regional or municipal authorities or a public law institution, or an equivalent administrative authority in the other Nordic countries. State universities and university colleges in the Nordic countries except Finland are deemed to be public sector employers. The Finnish universities are deemed to be private employers. Companies owned by the state or a municipality etc. are not regarded as public sector employers. Nor will the state, municipality etc. be regarded as a public sector employer if the business in question is a commercial undertaking

See here if you have a private sector employer.

Norwegian public sector employer

If you work in another Nordic country and receive your salary from a Norwegian public sector employer, your salary will only be taxed in Norway.

Public sector employer resident in another Nordic country

If you work in another Nordic country and receive your salary from a public sector employer resident in the country in which you are working, your salary will be taxed in that country. If you perform all or part of your work in Norway, the salary for the work performed in Norway will normally only be taxed in Norway.

Taxation in Norway

Income from employment that is taxed in another Nordic country must always be declared in your Norwegian tax return. You must also complete form RF-1150 "Reduction of income tax on wages", which you must enclose with your tax return. When your tax is assessed in Norway you will be entitled to a reduction in your Norwegian tax pursuant to the so-called "alternative exemption method", which means that you will not be taxed on income from employment both in the country where you work and in Norway.

Income from employment taxed in another Nordic country is not taxed in Norway, but is included when calculating the Norwegian tax payable on your other income. Your Norwegian tax is first calculated as if it were payable on your total income, i.e. both the income to be taxed in Norway and the income earned in the other Nordic country. After this, the tax relating to the income earned in the other Nordic country is deducted from the total. This means that you pay no Norwegian tax on your income from the other Nordic country. It also means that the tax level on the part of your income that is taxed in Norway will be the same as if the whole income had been taxed in Norway (the progressive effect).

Thus, the proportion of tax that would have been payable in Norway on the income earned in the other Nordic country is deducted from the total Norwegian tax. The amount of tax you have actually paid abroad is not taken into account.

Cross-border commuters

Cross-border commuters are persons resident in Norway in a municipality bordering on Sweden or Finland who work in a border municipality on the other side of the border. Special rules apply to cross-border commuters. If you are a cross-border commuter, your income from employment will only be taxable in Norway. A condition for this is that you stay regularly at least two days a week (spending the night) at your permanent address in Norway.

Select the other country here:   Denmark | Iceland | Finland | Sweden
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