Tax changes are set to cost nearly 70 million kroner

Proposed changes to tax law are expected to cost just under 70 million kroner, KVF reports. The bill, submitted to parliament, has financial implications for the state, municipalities and social funds.

The daily allowance deduction will rise from 120 to 210 kroner, at a cost of 1 million to 2 million kroner to the state and municipalities. Municipalities will be compensated by the state for their lost revenue.

A higher foreign deduction is expected to cost 10 million kroner from 2029, with municipalities again reimbursed by the state. The deduction will be 84,000 kroner for the 2027 income year, up from 48,000 kroner this year. About 1,000 people receive it.

A deduction for trade union membership fees is expected to cost the state, municipalities and social funds between 30 million and 40 million kroner once fully implemented in 2028. The deduction will apply to up to 2,000 kroner in fees in 2027 and up to 4,000 kroner from 2028.

A charge on 700,000 salary transfers is estimated at 1 million kroner. The person making each transfer will pay between 4 and 5 kroner.

A tax deduction for social contributions paid in Nordic countries is expected to cost public funds 16 million kroner, according to the Ministry of Finance.