Hi,
I received a sales bonus in my job. This bonus is related to my work. Bonus was taxed 43% while my regular salary was taxed with table.
As per my tax card 43% is for “annent inntekt”.
So l was confused why the bonus wasn’t also taxed normally.
I asked the department and received a reply. I don’t understand it. Can someone help me understand it (check image).
Thanks.
by Ok_Championship_5772
6 comments
Anything outside normal salary has the 43% tax withdrawal. Remember that this is only withdrawal, not what you will eventually pay, which will be calculated at the end of the year
Yup, all additional income (like bonuses) are taxed at your marginal tax rate. 43% seems like a likely percentage.
The reply you’ve pasted in is absolutely useless.
It is not really taxed, this is just an estimate- the real calculation of tax is done next year. This is normal for extraordinary payments.
There is no difference between salary and bonus in the end when the correct tax is calculated.
If you feel this is very wrong you can change your skattekort and fill in what you believe will be your total salary. Anyway you will get money back next year if you do nothing.
Since the bonus is a variable income it is deducted with a percentage instead of by table. It is done to avoid a situation where you’ll have to pay back taxes at the next tax return. At the end of the year, if you have been deducted to much, you’ll get it back in April.
The bonus is taxed the same as your regular salary in the end. The purpose of the tax deduction card is to try to approximate the taxes as closely as possible, so that that you don’t end owing a lot or getting a lot back with your tax return.
Most tax deduction cards are table based, which means that they use a pre-calculated table that specifies the amount of tax for different amounts of income. This table takes the different tax brackets into account, so that your deductions are as close as possible to the correct number. This method only works for fixed income periods. That is why there is also always specified a tax percentage on the deduction card, which is used for non-periodic incomes. Your bonus is considered a non-periodic income, which is why the tax deduction was calculated with the tax percentage value.
This relates only to what fraction of a given income is withheld for tax-purposes. The actual tax-calculations happen in the spring next year and income is taxed entirely identically regardless of whether it’s part of your normal salary, or it’s a provisjon.
That is if Anne has a fixed salary of 600K and John has a fixed salary of 400K with 200K of provisjon paid on top of that — the two of them will pay identical taxes.