ExpatBriefing: Norway Told To Amend Pension Tax Rules
20 December 2017
The European Free Trade Association Surveillance Authority (ESA) has ruled that Norway is in breach of European Economic Area (EEA) rules because it does not give non-resident, low-income pensioners the same tax deductions as those available to residents.
ESA said some Norwegian pensioners who have moved to other EEA states receive such a small pension income from Norway that it would be exempt from taxation there. In specific circumstances these pensioners are not offered the same tax deductions as are available to pensioners living in Norway.
In ESA's view, this constitutes unequal treatment and is in breach of Article 28 of the EEA Agreement and has sent Norway a reasoned opinion, seeking a response from the Government. Norway has two months to respond. Failing such, ESA may refer Norway to the EFTA Court.
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