Other deduction items

Other relevant deduction items for foreign employee/wage earner or pensioner on a limited stay in Norway. Commuter-related deductions you will find in Deduction for extra expenses in connection with commuting to a home abroad.

If you are claiming a deduction pursuant to these rules, you cannot claim the standard deduction for foreign employees.

Item 3.2.1 Minimum standard deduction 

The minimum standard deduction is a standard deduction from wage earnings, pensions and similar income. The minimum standard deduction is calculated automatically. The minimum standard deduction is 43 per cent of your wage earnings. The minimum amount of the minimum standard deduction is NOK 31,800 and the maximum amount is NOK 91,450 for a person who has lived in Norway during the whole income year.

Have you only lived in Norway for part of the year?

How the deduction is calculated for people who live in Norway for less than 12 months

If you have only lived in Norway for part of the year, the minimum standard deduction’s upper (NOK 91,450) and lower (NOK 31,800) limits will be reduced in proportion to the number of whole or part months you have been resident in Norway. The minimum standard deduction shall not be less than NOK 4,000, however.

Table for minimum deduction:

Months in Norway

1

2

3

4

5

6

7

8

9

10

11

12

Min

4 000

5 300

7 950

10 600

13 250

15 900

18 550

21 200

23 850

26 500

29 150

31 800

Max

7 621

15 242

22 863

30 483

38 104

45 725

53 346

60 967

68 588

76 208

83 829

91 450

The minimum standard deduction for people who live in Norway for less than 12 months is shown in the table . If you are resident in another EU/EEA country and have limited tax liability to Norway, you can be granted an extended right to deductions if at least 90 per cent of your income from employment, pension, disability benefits or business activity is liable to tax in Norway.

Item 3.2.8 Deduction for travel between the home and permanent workplace

You may be entitled to a deduction for travel between your home and your permanent workplace (travel to/from work) on the basis of an estimated travel distance in kilometres. The travel distance is normally calculated on the basis of the shortest distance by road between the home and the permanent workplace or by scheduled public transport, excluding air travel.

In practice, this means that if you make the return journey between your home and permanent place of work five days a week and the daily distance exceeds 64 km (there and back), you may be entitled to a travel deduction. You may also be entitled to a deduction for shorter distances if you:
• travel back and forth more than 230 times a year, or
• are entitled to a deduction for home visits in connection with stays away from home (commuter stays), see item 3.2.9

See skatteetaten.no/reisefradrag and skatteetaten.no/arbeidsreiser

Item 3.2.10 Deduction for child-care expenses (child-care deduction)

If you have one or more children aged eleven or younger (born in 2005 or later), you can claim a child-care deduction for expenses relating to the minding and care of children living at home (expenses relating to a childminder, day care centre, before and after school hours supervision scheme etc.).

The deduction is limited to NOK 25,000 for one child, and the maximum deduction limit is increased by NOK 15,000 for each additional child.

Item 3.2.12 Deductible premiums for foreign pension schemes (EEA), employment-related

With effect from the 2015 income year, a deduction will be granted for payments made to foreign pension schemes established in an EEA State.

Item 3.2.13 Seafarers’ allowance

The special seafarer’s allowance is 30 per cent of their taxable income on board, a maximum of NOK 80,000. The allowance can be claimed by persons whose main occupation has been work on board vessels in service, and who have worked on board for a total of at least 130 days during the income year. If the employment relationship is covered by a collective agreement which requires at least 130 working days on board during the year, the requirement is still regarded as being met even if work on board has not lasted for 130 days.

If you are claiming a seafarer’s allowance, you must complete the form "Information concerning claim for the Seafarer’s allowance" and enclose it with your tax return. The form is available here.

You are entitled to a seafarer’s allowance if you work on board vessels that are engaged in supply, emergency response or anchor handling services, seismic or geological surveying and other similar activities, as well as construction, pipe laying or maintenance activities on the continental shelf.

You are not entitled to a seafarer’s allowance if you work on board vessels that are engaged in exploration, exploration drilling, extraction, exploitation or pipeline transportation on the continental shelf.

Items 3.3.1 and 3.3.2 Interest on debt in Norway and abroad

If you are tax resident in Norway, you are entitled to a deduction for interest on debt.
If you own real property or a business abroad that may not be taxed in Norway according to a tax treaty, the deduction for interest on debt will be reduced. If you have only real property or business abroad that may not be taxed in Norway, and you do not have any taxable capital in Norway, the deduction for interest on debt will in practice not apply.

Special rules apply if you own a house/apartment or holiday home in another EEA state, and income and gains are tax-free in Norway under the tax treaty with the country in which the housing or holiday home is situated. You will then still be entitled to a full deduction for interest on debt. For the 2016 income year, this will apply if you own a house/apartment/holiday home in Belgium, Italy or Croatia. If you have been granted a deduction for interest on debt in the country in which the house/apartment/holiday home is situated, you will not be entitled to deduct this amount in Norway. You must therefore state which deductions you have claimed in the country in which the house or holiday home is situated.

Interest on loans abroad must be documented.

If you are not resident for tax purposes in Norway, you will generally only be able to claim a deduction for interest on debt that is linked to real property in Norway or business activity that is taxable in Norway.

If you are resident in an EEA country and have limited tax liability to Norway, you may also be granted a deduction under the same rules as a person who is resident in Norway. This will only apply when at least 90% of your total income is taxable in Norway. If you have real property or activity abroad which cannot be taxed in Norway as a result of a tax treaty, the interest deduction will be limited. Within the EU/EEA, this will apply when you have real property or activity in Belgium, Italy or Croatia. If you have real property in one of these countries and no taxable capital in Norway, the interest deduction will in practice no longer apply.

Special rules apply if you own a house/apartment or holiday home in another EEA state, and income and gains are tax-free in Norway under the tax treaty with the country in which the housing or holiday home is situated. You will then still be entitled to a full deduction for interest on debt. For the 2016 income year, this will apply if you own a house/apartment/holiday home in Belgium, Italy or Croatia. If you have been granted a deduction for interest on debt in the country in which the house/apartment/holiday home is situated, you will not be entitled to deduct this amount in Norway. You must therefore state which deductions you have claimed in the country in which the house or holiday home is situated.

You must provide sufficient information about your income outside Norway for it to be possible to calculate whether at least 90 per cent of your income is liable to tax in Norway. If you are claiming a deduction for interest on debt, you will be taxed on interest income etc. from Norwegian sources.

Item 3.3.7 Other deductions

Specify what you are claiming a deduction for. Among other things, this item is used for: The standard deduction for foreign employees

Items 3.1.8/3.1.9/3.1.10 Loss on sale of shares and units in unit trusts etc. 

If you are not tax resident in Norway, you cannot claim a deduction for loss on sale of shares and units in unit trusts etc. You must delete any amount entered in advance under these items.

If you are tax resident in Norway, you can claim a deduction for loss on sale of shares and units in unit trusts etc.

Item 1.5.6 Credit deduction

If you are liable to tax to Norway for dividends from a foreign company, you are entitled to claim a deduction (credit deduction) from Norwegian tax for the withholding tax deducted on payment (limited to the rate specified in the tax treaty). You must document the tax that has been paid, complete form RF-1147E "Deduction for tax paid abroad by a person (credit)" and check item 1.5.6; also see the guidelines Guidelines to completition of form RF-1147 Deduction for tax paid abroad by a person - credit

For further information, see skatteetaten.no/finnpost and skatteetaten.no/aksjer.