Paying Taxes in Norway: With and Without a D-number

If you’re planning to work in Norway, whether in fish factories or other seasonal jobs, understanding the tax system is essential. Norway offers good salaries, but just like anywhere else, you’ll need to pay taxes on your income.

One important thing to know is that your tax situation depends on whether you have a D-number or not. Let’s break it down in simple terms.

What is a D-number?

A D-number is a temporary identification number for foreign workers who are in Norway for a short time. It allows you to:

• Work legally.
• Open a Norwegian bank account.
• Pay taxes correctly.

Without a D-number, things can get complicated because employers and tax authorities need a way to register you.

Paying Taxes With a D-number

If you receive a D-number when you start working:

1. Employer registers your income with the tax office.
2. You’ll automatically be placed in the Pay As You Earn (PAYE) system, where 25% of your gross income is deducted as tax.
   • This system is simple and designed for foreign workers.
   • No need to file a complicated tax return unless you want to switch to ordinary taxation (which might be cheaper if you have deductions).
3. Your employer handles all reporting—you just see the tax deducted on your payslip.

Example:
If you earn 30,000 NOK in a month, about 7,500 NOK (25%) will go directly to taxes. The rest is yours.

Paying Taxes Without a D-number

If you don’t have a D-number:

• Your employer may deduct 50% tax from your income until your D-number is issued.
• This is not a penalty, but a temporary measure since the tax office cannot correctly register you without an ID number.
• Once you receive your D-number, you can apply for a tax refund for any overpaid taxes.

Important: Always apply for a D-number as soon as possible—it saves you money and avoids unnecessary stress.

How to Apply for a D-number

Usually, your employer helps with the application when you sign your work contract. You’ll need:

• Passport or national ID.
• Work contract.
• Completed application form for a tax deduction card.

After processing, the Norwegian Tax Administration (Skatteetaten) sends your D-number to your employer and your registered address.

Do You Need to File a Tax Return?

• If you’re in the PAYE system (25% flat tax), you generally don’t need to file a return.
• If you switch to ordinary taxation, you must file a tax return to include deductions (like housing or travel expenses).

Key Takeaways

• With a D-number: You pay 25% flat tax under PAYE, simple and straightforward.
• Without a D-number: You may be taxed 50% until you get one, but you can claim a refund later.
• Always apply for a D-number quickly to avoid overpaying taxes.

Working in Norway is rewarding, but understanding your tax obligations ensures you keep more of what you earn.

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