Contact

News & Insights

Voluntary tax fails to deliver

However, what the government may have failed to properly consider was that just as they are looking to balance the national books, Norway’s residents also have their own wealth management concerns – and making voluntary tax contributions can disrupt the financial plans even of high-net-worth individuals, particularly if they are in the process of pension or education fee planning.

However, it is probably fair to say that the Finance Ministry would have hoped to raise a little more money than it has so far; a sum that would not even be enough to buy a reliable second-hand car.

Perhaps the explanation for the modest haul is that many of Norway’s residents already pay a tax rate of 46.7 percent, and they are unlikely to feel they want to put Norway’s national wealth management concerns ahead of their own.

“The tax scheme was set up to allow those who want to pay more taxes to do so in a simple and straightforward way,” Norway’s Finance Minister Siv Jensen told press. “If anyone feels their tax level is too low, they now have the opportunity to pay more.”

It is probably pertinent that even Jonas Gahr Store, the wealthy leader of the left-of-centre Labor party, who was a leading critic of what he branded Norway’s unfairly low tax rates, has so far not opted to make any voluntary contributions under the government scheme.

The net result? It is thought that the scheme has cost considerably more to initiate than it has so far raised in voluntary contribution revenue. An unmitigated wealth management failure?

If you are an expat living in Norway and you feel you need some independent financial advice from experts who understand the system, please contact our wealth management team in Norway today.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Disclosure of assets

In light of the Panama Papers and their revelations, it would appear that it is not only tax evasion is in the headlines but also tax avoidance schemes. Evading tax by concealing income is illegal, avoiding tax by exploiting the tax rules technically is not.

panama papersTo help tax authorities in various countries hunt out those individuals and companies trying to hide assets, the UK has recently signed a disclosure of asset agreement with Spain, Germany, France and Italy. What does this mean? It means that the UK, in partnership with France, Germany, Spain and Italy, have passed regulations that will lead to the automatic sharing of information about the true owners of companies, complex shell companies and overseas trusts.

Read More

How to Decode and Check a QROPS

Magnifying GlassAs an expat your pension choices can seem labyrinthine. You may have been a member of one scheme over your entire career or perhaps you have paid into several smaller workplace schemes across different countries. Knowing what to do can seem like an enigma.

There are several types of expat pension transfer available, but knowing whether a transfer is right for you will take some investigation (and almost certainly expert advice).

Here we take a look at QROPS: what is a QROPS, are they a good idea and are they a suitable retirement savings vehicle for you if you intend to move abroad or already have done so?

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: