Deductions for interest on debt (deduction for interest)

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You will normally be entitled to claim a deduction for all the interest that you have paid on your loans during the income year. You enter the deduction for interest on debt under item 3.3.1 of the tax return.

This item will be pre-completed with interest and deductible expenses you have paid to the bank. Enter any interest on private loans. 

If the tax office asks you to, you must submit documentation for the amounts.

You can also claim a deduction for:

  • expenses associated with the taking out of loans, including establishment fees, 
  • financing expenses in connection with the conversion of loans to obtain lower interest rates, including expenses for a valuer,
  • housing cooperative fees linked to the special repayment of IN loans (joint debt with individual repayment entitlement)   
  • interest on loans from an employer or private lender (e.g. family members), 
  • penalty interest on interest on debt, and interest and charges paid in connection with credit purchases,
  • interest on loans abroad. Find out more

You cannot claim a deduction for interest for:

  • interest which was due for payment, but which you did not pay during 2016 (unless the interest pertains to a business with a bookkeeping obligation). You will not be entitled to deduct such interest until the year in which you actually pay it. In the case of student loans from the Norwegian State Educational Loan Fund (Låneskassen), deductions are also only allowed for interest that has actually been paid. 
  • debt collection charges and expenses in connection with debt collection, 
  • interest surcharges on underpaid tax (does not apply to penalty interest).

Spouses/spouse-equivalent cohabiting partners with joint debt

Where several people have a joint loan and the bank only reports the loan for one of the borrowers, the borrowers must divide the deduction between themselves in proportion to their liability with respect to the bank.

  • Married couples may choose a different allocation. 
  • Spouse-equivalent cohabiting couples wishing to use a different allocation must be able to present an internal agreement concerning allocation of the liability for the debt. The deduction for interest on debt must be allocated according to liability. An internal agreement which only concerns who is to pay the interest is of no significance to the entitlement to a deduction for interest. 

In the case of certain credit purchases, there are limitations on the amount that can be deducted

Certain formal conditions and limitations on the amount that can be deducted apply to credit purchases. For each agreement concerning a credit purchase which is covered by the provision in the regulations, the deduction is limited to a rate of 17% effective interest. The limitation does not apply in connection with account purchases where the creditor is a bank or financing enterprise. See the Assessment ABC for more information on this. 

Changes which apply from the 2016 income year onwards

You will get back 25 percent of the interest that you paid. Companies, etc. can no longer deduct all their interest expenses from associated parties in connection with the assessment of their income.

Why haven't I got a preliminary tax calculation on my tax return?

There could be a number of reasons why you haven't received a preliminary tax calculation on your tax return.

How to change an item in your tax return

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