Deductions

Here is an overview of the most commonly used deductions which you may be entitled to as a foreign employee in Norway. You can enter these deductions in your tax return.

Deduction wizard

You can get help to find out which deductions you are entitled to using our deduction wizard:

Personal allowance

The personal allowance is a general basic deduction from general income, i.e. it's given against all income (salary, pension, capital and business income). The personal allowance is a deduction which you receive automatically. You will not be able to see it in your tax return, but it's included in the basis for your tax calculation. 

Minimum standard deduction

The minimum standard deduction is a standard deduction that everyone who receives employment income and/or a pension is entitled to. The total amount will be pre-completed automatically based on information concerning income and/or pensions which has been reported about you.

The deduction amounts to 45 percent of your gross employment income, subject to a maximum of NOK 100,800 (in 2019).

Twelfths (number of months)

If you are tax resident in Norway during the entire year, you will be entitled to the full deduction (12/12). If you were only liable to pay tax as a resident of Norway under Norwegian internal law for part of the year because your tax liability began or ceased during the year, or if you have limited tax liability to Norway, you must check that the number of twelfths entered in the tax return is correct. 

The number of twelfths affects the size of the minimum standard deduction, personal allowance, bracket tax, etc.

Find out more about calculating twelfths

The standard deduction is a general income deduction for foreign employees who work in Norway. The deduction amounts to 10 percent of gross employment income, subject to a maximum of NOK 40,000. Note that a number of other deductions cease to apply if you decide to claim the standard deduction.

You can claim the standard deduction if:

  • you are not a tax resident in Norway, or
  • this is one of your first two years as a tax resident in Norway.

Find out more about tax residence

If you claim the 10 percent standard deduction, you can't claim deductions such as added expenses for board, lodging and travel at the same time. If your employer has covered your expenses for board, lodging and travel and you have also claimed the standard deduction, the expenses will be taxable.

If both you and your spouse are entitled to the standard deduction, you can only claim the standard deduction if your spouse also requests it.

You must claim the deduction under item 3.3.7 of your tax return. Read more about the standard deductionHow to change the standard deduction.

The standard deduction is discontinued from the income year 2019 forward. 

If you have to stay away from home overnight because of your work, you may be entitled to a deduction for the extra expenses you incur relating to board, lodging and home visits as a result. It is a condition that the expenses are extra and that they are notcovered by your employer.

If you opt to claim the deduction for commuters, you can't claim the standard deduction for foreign employees at the same time. 

The standard deduction is discontinued from the income year 2019 forward. 

Board and lodging

If you stay away from home overnight because of your work, you may be entitled to a deduction for your added expenses for food (board) and accommodation (lodging), etc. You must enter the deduction under item 3.2.7 of your tax return.

Travel between your home and your permanent place of work

You can claim a deduction for expenses for travel between your home and your permanent place of work amounting to between NOK 22,700 and NOK 97,000. You will be entitled to this deduction irrespective of your actual expenses and the mode of transport you have used. The deduction is calculated on the basis of distance travelled. The amount may be pre-completed based on the information from last year's tax return. You must enter the deduction under item 3.2.8 of your tax return.

Home visits

If you have to stay away from your home in Norway or abroad because of work, you can claim a deduction for your travel expenses between your commuter accommodation and your actual home. You can claim a deduction for your expenses which amount to between NOK 22,700 and NOK 97,000. The deduction is calculated on the basis of distance travelled. You must enter the deduction under item 3.2.9 of your tax return.

If your employer has covered your expenses for board, lodging or travel, you can't claim a deduction for these expenses.

If you are a tax resident in Norway, you can claim a deduction for interest on debt you have paid on loans during the income year.

If you only have limited tax liability, you will not generally be entitled to claim a deduction for interest on debt. However, you will be able to claim it if you have extended deduction entitlement. Read more about this under the section entitled Extended deduction entitlement for persons from the EU/EEA with limited tax liability at the bottom of this article.

Read more about tax residence and limited tax liability

You can also claim a deduction for interest on debt you have paid abroad.

You can claim parental allowance for documented costs for the minding and care of children at home who are under 12 years of age during the income year.

The following conditions must be met:

  • Your real home must be situated in another EEA Member State.
  • If you have limited tax liability, 90 percent of your family income must be liable to tax in Norway.

You can claim parental allowance of up to NOK 25,000 for a single child. You will also receive NOK 15,000 for each additional child. You must enter the deduction under item 3.2.10 of your tax return.

If you are resident in another EU/EEA country and have limited tax liability in Norway, you can ask to be taxed as if you were resident for tax purposes. The condition is that at least 90 percent of your income from employment, pension, disability benefits or commercial activity is taxed in Norway.

Read more about tax residence and limited tax liability

This means that you can claim most ordinary deductions. Among other things, you will be entitled to the full minimum standard deduction/personal allowance, which is otherwise limited based on how long you were resident in Norway during the income year. You may also be entitled to parental allowance for the minding and care of children.

If you are married, your spouse's income must also be included in the assessment of whether or not at least 90 percent of your income will be taxed in Norway. If you have shared children with a cohabiting partner, your partner's income must be included if you claim parental allowance.

You must document that at least 90 percent of your income (and your spouse’s income) will be taxed in Norway.