You have paid too little tax. What happens?
- You get a prison sentence
- Nothing
- You have to pay the missing tax
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💡 Explanation
In Norway, both employees and employers must pay tax. The tax revenue goes to the state, county authority, and municipality, and is used to fund things like schools, hospitals, roads, the police, and welfare services. Anyone who earns income must pay tax – and usually, this is automatically deducted from your salary each month.
Every year, the Norwegian Tax Administration (Skatteetaten) checks whether you have paid the correct amount of tax for the previous year. They compare your income with how much tax you actually paid – this is called the tax settlement.
If you have paid too much tax, you will receive a refund. This is referred to as having a credit on your tax.
If you have paid too little tax, you must pay the outstanding amount. This is called balance tax. You are typically given a deadline and allowed to pay in installments.
If you intentionally tried to deceive the Tax Administration – for example by hiding income or providing incorrect information – you may be punished with a fine or even imprisonment. The Tax Administration also has the right to audit your taxes for several years back to ensure everything is correct.
On your payslip each month, you can see how much tax you have paid so far this year.