The standard deduction for foreign employees is 10 per cent of your gross income from employment, and maximum NOK 40,000. Gross income from employment includes gross pay plus other taxable cash payments and payments in kind and any surpluses on expense allowances.
You may claim the deduction when you have a limited tax liability, and the first two calender years you are liable to tax as resident in Norway.
If both you and your spouse are entitled to the standard deduction, you may only claim the standard deduction if your spouse claims this deduction as well.
How do you claim the deduction in the tax return for income and wealth tax?
Please note that the standard deduction is not granted automatically. You must claim it under item 3.3.7 in your tax return before you submit the tax return for income and wealth tax. We recommend that you submit your tax return electronically.
In addition to the standard deduction, you are entitled to:
If you stay/are resident in Norway for the whole income year, you will be entitled to the full minimum deduction and personal allowance (12/12). If you are resident in Norway for part of the income year, the deduction and allowance will be reduced in proportion to how long you have been resident in Norway. If you are liable to tax on salary in Norway but not resident, the deduction and allowance will be reduced in proportion to how long you have had taxable salary. If, for example, you have received salary in Norway for between three and four months in the income year, the allowance and deduction will be 4/12 of the full amounts.
The standard deduction for foreign employees is not reduced even if you have only been liable to tax in Norway for part of the year.
You may also be entitled to:
- a deduction for contributions to a Norwegian public or private occupational pension scheme
- a deduction for trade union dues
If your are a citizen of an EU/EEA country you may also be entitled to deduction for contributions to a pension scheme in another EU/EEA country.