2023 Income tax rates amendment and introduction of additional social tax

Effective from 1 January 2023, the Norwegian Government has announced the following changes:

• Income ceilings and rates for the income tax tables have been updated for the 2023 tax year. The tables can be accessed on the Skatteetaten website: https://www.skatteetaten.no/en/rates/deduction-tables-in-text-format/
• Additional Social Tax of 5% for income in excess of 750 000 NOK per year has been introduced. The tax will only be applied once an employee has earned in excess of this amount.
• Velferdspermisjon(Welfare leave) and utdanningspermisjon (Study leave) are no longer in place and have been replaced by the below codes for A-melding reporting purposes:
  • Andre permisjoner lovfestet (Other statutory leaves)
  • Andre permisjoner ikke lovfestet (Other leaves not stipulated by law)
  • Utdanningspermisjon lovfestet (Statutory study leave)
  • Utdanningspermisjon ikke lovfestet (Study leave not legislated)

For the tax year commencing on 1 January 2023, the above-mentioned changes have been implemented onto our system to ensure compliance with the legislated regulation changes.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change