UK seafarers will only be entitled to reclaim 100% of their Norwegian Tax back if their tax reliefs and allowances exceed their Norwegian taxable income. There is no 100% deduction for Seafarers, however if their Norwegian income is sufficiently low enough and/or the specific tax reliefs are high enough they will be able to claim back all of the tax. This will therefore vary from person to person.
Seafarers who work in Norway less than 183 days will not be Norwegian tax resident and will only be taxed on their Norwegian income. Norwegian income will include any income derived from working on vessels in connection with ‘petroleum-related’ activities on the Norwegian Continental shelf. The 183 day rule is not therefore relevant as UK seafarers will still be taxed on that proportion of their income.
The tax rate is 28% and a higher rate of 9% can apply to income in excess of £50k (pro-rated for actual time spent in Norway).
However the tax charge is on net income after all tax reliefs of which there are several and it is vital that these are all claimed to maximise the repayment
The Main Tax Reliefs (exact rates vary depending on year and amounts are approximate dependent on exchange rate)
Minimum Standard deduction – 38% of taxable income up to a max of £8k
(this amount is reduced pro-rata for amount of time spent in Norway CS)
Personal Allowance - £4.5k or £9k if seafarer has a spouse with negligible income (must be proved)
Seafarers Allowance – 30% of taxable income up to a max of £8.5k
(Available only if work minimum of 130 days on board a qualifying vessel in a Calendar year (no rolling claim period like here)
Standard Deduction for Foreign employees – 10% deduction for foreign employees up to a max of £4k
(this in exchange in exchange for giving up rights to claim certain other reliefs and will vary from case to case)
As you can see each case will be different and it may be possible to claim back all tax paid, but it is not guaranteed in every case.
Our fees are £250 per tax year for Norwegian Tax Returns
If you would like us to complete your Norwegian Tax Return for you, please send the following information;
- Your Norwegian Tax Return
- Altin codes if you have these
- Your personal ID number
- Photocopy from your discharge book
- Tax Card from your employer