Taxes and budgets: Everything that changes in Norway in May 2024
Tax rebates, an update on the ‘exit tax’, the revised national budget, and a potential new interest rate strategy are among the key things to look out for in May.
Deadline to pay back taxes, and tax rebate payouts
May 31st is the deadline for business owners to submit their tax returns. This applies to sole proprietorships (Enkeltpersonforetak/EK) and companies (Selskap/AS).
The end of May is also a key date if you expect a rebate. If you overpaid tax in 2023, this is when you will be confirmed to receive a rebate. Those who submitted their tax returns early may also receive their rebate in May.
Those who have paid too little tax will have until May 31st to pay back any tax they own to avoid interest.
Revised national budget
The Norwegian government will unveil its revised budget for the rest of 2024 on May 14th. In the morning, the key figures will be presented, before finance minister, Trygve Slagsvold Vedum, unveils the full set of proposals.
Norway’s government has previously announced that it will increase defence spending heavily to meet the NATO “2 percent” target.
One thing the parents of international school students may want to keep an eye on is whether the government will announce any changes to how it will fund private schools.
Proposals in the last budget threatened the futures of some of Norway’s international schools.
Norges Bank could change its interest rate strategy
When it raised the key policy rate to 4.5 percent at the end of last year, Norges Bank said that rates would likely begin to come down again from September.
However, economists are now of the opinion that the central bank will hold off doing this until December due to the economy, a weak krone, and wage rises this year.
The central bank will convene on May 3rd, and it may wish to outline a new interest rate strategy.
Consultation for the “exit tax” ends
Norway’s Ministry of Finance has proposed amendments to the emigration tax. The government wants tougher tax rules for people leaving the country.
The new system will see the state close loopholes that exist within the current exit tax rules, and emigrants will be charged on the gains they have made on shares while residing in Norway when moving assets overseas.
The tax will apply retroactively from March 20th, 2024. Emigrants will be presented with several options for fulfilling this tax obligation. They will be able to choose to pay the tax immediately, opt for interest-free instalments spread over a 12-year period, or defer payment until after the 12-year deadline, but with accrued interest.
On May 21st, the public consultation period for the proposed policy ends. This means that the government will have had input on how the tax will, or should work.
READ MORE: What we know so far about Norway's plans for an exit tax
Public holidays
Workers in Norway can expect no less than four days off from work in May due to several public holidays.
Wednesday, May 1st will see workers off for Labour Day, this is followed by Ascension day on May 9th.
The largest public holiday will be the Constitution Day celebrations on May 17th. This sees parades and celebrations across the country to mark the signing of Norway’s constitution.
READ MORE: Why does Norway celebrate May 17th?
This is followed by Whit Monday on May 20th, meaning workers in Norway will be treated to a long weekend.
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Deadline to pay back taxes, and tax rebate payouts
May 31st is the deadline for business owners to submit their tax returns. This applies to sole proprietorships (Enkeltpersonforetak/EK) and companies (Selskap/AS).
The end of May is also a key date if you expect a rebate. If you overpaid tax in 2023, this is when you will be confirmed to receive a rebate. Those who submitted their tax returns early may also receive their rebate in May.
Those who have paid too little tax will have until May 31st to pay back any tax they own to avoid interest.
Revised national budget
The Norwegian government will unveil its revised budget for the rest of 2024 on May 14th. In the morning, the key figures will be presented, before finance minister, Trygve Slagsvold Vedum, unveils the full set of proposals.
Norway’s government has previously announced that it will increase defence spending heavily to meet the NATO “2 percent” target.
One thing the parents of international school students may want to keep an eye on is whether the government will announce any changes to how it will fund private schools.
Proposals in the last budget threatened the futures of some of Norway’s international schools.
Norges Bank could change its interest rate strategy
When it raised the key policy rate to 4.5 percent at the end of last year, Norges Bank said that rates would likely begin to come down again from September.
However, economists are now of the opinion that the central bank will hold off doing this until December due to the economy, a weak krone, and wage rises this year.
The central bank will convene on May 3rd, and it may wish to outline a new interest rate strategy.
Consultation for the “exit tax” ends
Norway’s Ministry of Finance has proposed amendments to the emigration tax. The government wants tougher tax rules for people leaving the country.
The new system will see the state close loopholes that exist within the current exit tax rules, and emigrants will be charged on the gains they have made on shares while residing in Norway when moving assets overseas.
The tax will apply retroactively from March 20th, 2024. Emigrants will be presented with several options for fulfilling this tax obligation. They will be able to choose to pay the tax immediately, opt for interest-free instalments spread over a 12-year period, or defer payment until after the 12-year deadline, but with accrued interest.
On May 21st, the public consultation period for the proposed policy ends. This means that the government will have had input on how the tax will, or should work.
READ MORE: What we know so far about Norway's plans for an exit tax
Public holidays
Workers in Norway can expect no less than four days off from work in May due to several public holidays.
Wednesday, May 1st will see workers off for Labour Day, this is followed by Ascension day on May 9th.
The largest public holiday will be the Constitution Day celebrations on May 17th. This sees parades and celebrations across the country to mark the signing of Norway’s constitution.
READ MORE: Why does Norway celebrate May 17th?
This is followed by Whit Monday on May 20th, meaning workers in Norway will be treated to a long weekend.
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