Double taxation
If you have income or wealth in two countries, you can risk taxation of your income and/or wealth in both countries. You can find out here how to avoid double taxation.
Avoid double taxation
Norway has its own rules to avoid double taxation. We have also entered into a number of tax treaties. The method for avoiding double taxation depends on the tax treaty between Norway and the individual country.
There are three methods
1. The credit method
The credit method entails that you can claim a deduction in your Norwegian tax for the tax that is paid abroad. This deduction is limited to the Norwegian tax on the same income.
What you need to do:
Income/wealth from another country must be included in your tax return. You must yourself claim the credit deduction in your tax return.
2. Alternative allocation
In the alternative allocation method, we first calculate what the tax would have been if all income were taxed in Norway. The Norwegian tax is then proportionally reduced according to the income that is taxable in Norway and the income that is not taxable in Norway. This tax reduction means that no Norwegian tax will have to be paid on salary income that is taxed abroad. The alternative allocation method must also be used when you claim a tax reduction according to the so-called one-year rule.
What you need to do:
Income/wealth from another country must be included in your tax return. You must yourself claim the tax reduction in your tax return.
3. The allocation method
The allocation method (exemption method) means that salary income earned abroad is exempted from taxation in Norway. It is only the tax treaty between Norway and Malaysia that applies this method on salary income.
What you need to do:
Income/wealth from Malaysia must be included in your tax return. You must yourself claim exemption from taxation pursuant to the allocation method in your tax return.
More about
If you’re taxed for the same income or capital/wealth in Norway and another country, you can contact the tax authorities in the two countries and request that they decide which country has the right to tax you.