Norway has relatively high rates of direct and indirect taxation, which are used to fund a range of public and social services, and to cover the cost of subsidizing certain foods and other goods. Direct taxes include income tax and property tax. Indirect taxes include VAT, which is levied at a rate of between 12 and 25% on most goods and services.

Income tax is normally deducted direct from employees' salaries by their employers, and includes a social security contribution. Employers also contribute to the social security fund on behalf of their employees.

If you are going to work in Norway, you will be required to register as a taxpayer by taking your employment contract and passport to the local tax office and completing the form 'Application for tax-card for foreign citizens.' Your employer must be presented with this card when you start work, otherwise you will initially have 50% of your income deducted as tax, and reimbursed the following year.

Tax is payable on the current year's income, based on an estimate of liability. Everyone is required to complete an annual tax return. Tax rates depend on level of income and any allowances, but usually around a third of gross pay is payable in tax.

There are special arrangements for people who are working in Norway for less than six months, details of which can be obtained from the tax office. Additionally, foreign nationals who are living and working in Norway for less than four years may be entitled to a tax-free allowance of 15%.

Norway has Double Taxation treaties with a number of other EU/EEA countries, which mean that tax paid in one country can be offset against any tax payable in the other.