These tax changes take place in Norway from the New Year

From New Year onward, several taxes, fees, and rules in Norway will change. Among other things, tobacco is becoming more expensive, and tax-free quotas are being tightened.

* The government is making several changes to the tax system. The tax on the highest incomes will increase, while it will reduce on the lowest.

* According to the government, 82% of taxpayers will receive lower or unchanged tax next year. Those who earn less than NOK 750,000 a year will be left with more.

* Wealth tax will increase from 0.85% to 0.95%. For assets of more than NOK 20 million (NOK 40 million for spouses), a higher rate of a total of 1.1% will be introduced. At the same time, the bottom deduction will be increased from NOK 1.5 million in 2021 to NOK 1.7 million.

* Claims for a pension from the first krone and the first day in private occupational pension schemes take effect from January 1. Transitional schemes have been established that give companies time until June 30 to adapt their pension schemes to the new rules.

* The trade union deduction will increase from NOK 3,850 to NOK 5,800.

* The electricity tax will be cut by 8 øre per kWh in the winter months and cut by 1.5 øre in the April-December period.

* The tobacco tax will increase by 5% more than the usual price adjustment. For a 20-pack of cigarettes, this means that the tax will increase from NOK 55.4 to NOK 59. For snus, the fee increases from NOK 85 per 100 grams to NOK 90 per 100 grams.

* The CO2 tax will increase. At the same time, the motor insurance tax and the road use tax will be reduced to compensate for increased petrol prices.

* The tax-free quota for travelers will change. After the New Year, you can no longer replace the quota for tobacco products with 1.5 liters of wine or beer.

* Maximum deduction for gifts to voluntary organizations will be reduced from NOK 50,000 to NOK 25,000. The change will take effect immediately with effect from the income year 2022.

* The valuation of shares and fixed assets will increase from 55% to 75% from the income year 2022. The valuation will also increase for expensive primary homes so that the valuation is 50% for the part of the home’s value that exceeds NOK 10 million.

* The valuation of secondary homes will increase from 90 to 95%, while the property values of holiday homes will be adjusted upwards by 25%.

* Change in travel deduction: As of the income year 2022, the current two rates for travel deductions will be replaced by one common kilometer rate of NOK 1.65/km.

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