this post was submitted on 23 Feb 2025
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Employers deduct a part of your salary as taxes on every paycheck (usually monthly). But how much they deduct is based on your tax profile which is created by the tax authorities. It's typically based on expected yearly income. However, you are allowed (and encouraged) to update this number yourself.
So say you swap to a lower paid job, or work less overtime than you planned, you can change your expected annual income to reflect this in taxes paid. If you don't however, then you effectively pay too much taxes as your employer is basing the taxes on too high numbers.
Another reason is that you may have tax deductions that only gets computed into the total when you fill out your full tax report. So if you didn't bake those into your tax profile at the start of the year, you might get returns on your taxes (with interest).
You can also downplay how much taxes to pay through salaries, in which case you will owe back taxes when the full tax report is made.
Interesting. I presume for the average adult this wouldn't really be an issue, unless they are switching job or working some kind of job with variable income. Unrelated question- do you like living in Norway?
Yeah, it's not an issue for most people. I think the system works well. And the annual taxes are very simple to fill out. The report comes filled out for you, and you just need to make adjustments or approve it as is. Never had any issues with tracking or reporting my taxes.
I really enjoy living in Norway. I feel the culture and the way of life suits my preferences very well. There are of course always things one hope improves over time and things that could be better. But overall, life is good here I feel.