– The highlight every year is half tax, laughs Silje Wines. It will come in handy for the Christmas shopping, the extra money will be used to buy Christmas presents and pay the electricity bill. – There will actually be nothing left, she admits. This is how half tax works Norwegians pay tax spread over 10.5 months. In these months we pay more. In return, the state does not deduct tax from holiday pay in June, and you pay 50% tax in December. The decision on half tax was introduced by LO in 1952, in order to give Norwegians a more generous economy around Christmas time. As stated in the article, this is tax you have paid for elsewhere in the year. Source: https://www.reksandarnorge.no/faget/artikler/skatt/slik-fungerer-halvt-skattetrekk/ – It comes in handy as the 25-year-old was until recently a student, and notices that the cost of living has increased considerably. – It’s nice that you get extra to travel with in December since it’s an expensive month with Christmas and New Year, she says. Although Wines is happy about half tax, she doesn’t quite know why. When news tells her that you pay more tax in the remaining months, she doesn’t think it’s as much fun. – It’s nice to know anyway, she says. Save for unexpected bills Ellen K. Nyhus is a professor of economics, she recommends saving if you have the opportunity. Photo: Ada Bjøranger Ellen K. Nyhus is an economist and professor of marketing at the University of Agder School of Economics. She points out that half tax is a kind of help from the tax authorities, since December is a consumption month in connection with the Christmas celebrations. Depending on the state of the economy, Nyhus asks Norwegians to save some of the extra income for unforeseen bills that may come in the New Year. CHRISTMAS SHOPPING: Many people shop for Christmas, but the experts advise people to save if they can. – It is also understandable that many people use the extra funds to finance Christmas, she says. Consumer economist Hallgeir Kvadsheim agrees. He believes that it has been a tough autumn for many, and that one should not feel guilty about spending more at Christmas. Consumer economist Hallgeir Kvadsheim recommends young people to save at BSU. Photo: Tuva Skei Tønset For those who have not been hit as hard by increased prices and who have money to spare, he also recommends saving. – It will continue to be tight financially with the high interest rates, says Kvadsheim. For all young people under the age of 34, he recommends setting aside money for BSU before the New Year so that you get a tax deduction for it until next year. – Especially for young people who live at home, it might be a good idea to save the extra money, he concludes. Forced savings Rolf Lothe is head of the Taxpayers’ Association. Photo: Fathia Mahmoud Farah / news Head of Department Rolf Lothe in the Taxpayers’ Association says that the authorities want people to have more to do in the summer and at Christmas, which is why Norwegians get tax-free holiday money in June and half tax in December. He is nevertheless clear that it is not a gift package. – This means that the Norwegian Tax Agency deducts more tax in the remaining 10.5 months. It is a form of forced savings from the state, explains the department head. Lothe recommends asking the employer to deduct full tax if you see that you have paid too little tax, in order to avoid residual tax. – Although it may be a long way off, it is important to check that the tax card is correct, and rather pay a little more now, recommends Lothe. The tax card was sent out to 4.4 million Norwegians today. The IRS is asking people to make sure they pay the right tax, especially if their finances have changed this year. Mistakes can lead to you either paying too much tax, or having to pay tax in arrears.
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Half tax in December is no gift package – news Norway – Overview of news from different parts of the country
