Regulatory changes may affect your economy next year
Tax on cash benefits for travel, the wreckage of mopeds, cheaper beer from micro-breweries and cheaper chocolate. A number of economic changes are taking place in the New Year.
As usual, there are many changes in fees, tax rates and other financial regulations that will come into force at the turn of the year. Here are a selection of them:
Tax on dietary income during work breaks
From 1 January, the government introduces a scheme for taxation of dietary allowance if the sum exceeds a certain limit. On travel with accommodation in hotels, the new tax-free rate is set at NOK 578, whether travelling abroad or at home.
Previously, taxes have been free as long as the dietary allowances remain within government rates, but now the state rates will in many cases be higher than the tax-free limit. For example, the dietary supplement for Denmark is 1,190 kroner. Several jobs in the private sector make use of the state’s rates.
On day trips that last between 6 and 12 hours, a tax-free rate of 200 kroner will be introduced, while the rate will be 400 kroner for travel over 12 hours.
The government expects to withdraw NOK 115 million in additional tax revenues in this way.
The municipalities can not make a huge jump in property tax
A rule is introduced that states that the municipalities can only increase the rates on property tax by 1% of the value of the property per year. The same goes for residential and leisure property.
In addition, municipalities that introduce property taxes for the first time may only require 1% of the tax value in the first year.
In addition, production equipment and production installations are exempt from property tax.
Opportunities for lower wealth tax
The so-called valuation rebates mean that you do not pay full wealth tax on shares and mutual funds. Next year this discount will increase from 20 to 25%.
In addition, the amount is increased when the wealth tax begins to run. The tax deduction is set at NOK 1.5 million in 2019, against NOK 1.48 million in the tax year 2018. For spouses who are taxed as a whole, the sum will be NOK 3 million.
Advance deduction on tips revenue
People who receive tips through their job must already pay tax for it. New from next year is that employers must report it, make advances and pay employer’s social security contributions from the employee’s tips.
Dividends will be part of the Share Savings Account
The scheme of equity savings accounts is extended to also apply to dividend payments. Thus, you do not have to pay tax on dividends
before you withdraw the money. In addition, it also opens for securities to be transferred between one’s own accounts without taxation.
One can give more to NGOs and still receive a deduction
From 1 January, the limit will be raised for how much can be given to certain voluntary organizations and still receive tax deductions,
from 40,000 kroner to 50,000 kroner.
Small beer breweries do not have to pay as much tax as before – which could mean cheaper beer. The change concerns breweries with annual output of less than 500,000 litres of beer.
Payments on several new types of vehicles
Wreckage payments will be introduced on several new types of vehicles. The rates are as follows:
- Mopeds and motorcycles: 500 kroner
- Caravans and Trucks: 3,000 and 5,000 kroner
- The rate for regular cars continues at today’s level (2,400 kroner)
The sugar fee for chocolate and candy was raised by 83% during the previous year, which brought strong protests from the industry.
In the new year, the fee will be reversed to 2017. The fees for juice and soft drinks, which were also increased last year, are not reversed.
(Source: Ministry of Finance)
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