2016 Budget: Income tax gets shake-up / News / The Foreigner

2016 Budget: Income tax gets shake-up. The Rightist bipartite coalition’s draft national budget proposal sees the government giving with one hand, taking away with the other. As unemployment rises and oil prices remain low, the government declares it wishes to “help dampen the macroeconomic effects of the decrease in activity in the petroleum sector, while allowing for necessary structural adjustments.” “Our main challenge is to create new jobs in sectors exposed to international competition. The government aims to foster productivity growth and implement measures to increase the economy’s growth potential,” Finance Minister Siv Jensen says in a statement.

tax, income, jobs, earnings



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2016 Budget: Income tax gets shake-up

Published on Wednesday, 7th October, 2015 at 12:16 under the news category, by Michael Sandelson   .
Last Updated on 7th October 2015 at 18:57.

The Rightist bipartite coalition’s draft national budget proposal sees the government giving with one hand, taking away with the other.

Leather travel case
Leather travel case
Photo: zibber/Shutterstock Images


As unemployment rises and oil prices remain low, the government declares it wishes to “help dampen the macroeconomic effects of the decrease in activity in the petroleum sector, while allowing for necessary structural adjustments.”

“Our main challenge is to create new jobs in sectors exposed to international competition. The government aims to foster productivity growth and implement measures to increase the economy’s growth potential,” Finance Minister Siv Jensen says in a statement.

Part of today’s budget proposal sees a possible alteration of current income tax levels (for people deemed liable to pay tax to Norway).

Tax on basic income is presently at 27%, with two additional tax bands for top earners. The first sees an extra 9% levied on each krone above 550,550 kroner a year. This increases to 12% regarding salaries in excess of 885,600 a year (per krone).

The government proposes reducing basic income tax to 25%, but wishes to introduce new tax bands instead.

Here is a brief overview of the changes. Again, all percentages relate to each extra krone earned:

  • New tax band 1: Income of 158,800 and over attracts an extra 0.8%
  • New tax band 2: Income of 224,900 and over attracts an extra 1.6%
  • New tax band 3: Income of 565,400 and over attracts an extra 10.6%
  • New tax band 4: Income of 909,500 and over attracts an extra 13.6%

Current allowed tax deductions (excluding interest payments and other expenses) are as follows – these do not include the 8.2 per cent national insurance contribution subtracted from employees’ salaries, taken off prior to these deductions.

  • Standard minimum deduction: 31,800 for incomes up to 31,800 and from 31,801 to 73,954. Incomes between 73,955 and 195,696 are subject to a standard 43% minimum deduction. People earning 195,697+ are given 84,150
  • Personal allowance: 50,400 (Class 1 – single people), and 74,250 (Class 2 – married people)
  • Parental allowance: 25,000 (one child), 15,000 (per additional child)

Detailed Norwegian tax authority information

Tax classes               
National insurance contributions
Standard minimum deduction – own income
Minimum standard deduction
Personal allowance
Parental allowance (childcare expenses)




Published on Wednesday, 7th October, 2015 at 12:16 under the news category, by Michael Sandelson   .
Last updated on 7th October 2015 at 18:57.

This post has the following tags: tax, income, jobs, earnings.





  
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