3.3.1 Interest on debt
Applies to the income year 2018
This item shows the amount you have paid in interest on debt, penalty interest and/or the benefit of low-interest loans from an employer. The total will normally be pre-filled with the amount that has been reported, so you should check that everything is correct.
Does this item concern me?
This item concerns everyone who has paid interest on debt and/or penalty interest to a credit institution in Norway, as well as everyone who has received the benefit of low interests on a loan from an employer.
You may also be entitled to a deduction for:
- expenses associated with taking out loans, including establishment fees,
- financing expenses in connection with the conversion of loans to obtain lower interest rates, including expenses for an appraiser,
- interest on loans from an employer or private lender (such as family members),
- fees linked to the individual repayment of a shareholder's share of joint debt in a housing cooperative,
- penalty interest on interest on debt, and interest and charges paid in connection with credit purchases,
- interest on loans abroad which is entered under item 3.3.2.
You CANNOT claim a deduction for interest for:
- interest which was due for payment, but which you did not pay during 2018 (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).
- fees for registration of mortgage bonds.
How do I enter this in my tax return?
The item will normally be pre-filles with totals for interest on debt and/or penalty interest. The amounts are based on what was reported by the party that received payment from you, so you should check that everything is correct.
The amounts you should perform the check against should be shown in the annual statement you will receive from your lender(s) in January.
If the amount is wrong, you must correct the tax return. You should also contact the lender you have borrowed money from to ensure that the annual statement is correct.
Information is missing
If any information is missing, you must enter the lender's name, debt, interest on debt and any reason for the change.
Loan from employer
The benefit of low-interest loans from an employer will normally be pre-completed based on information reported by your employer, so you should check that everything is correct.
The amounts you should perform the check against should be shown in the Certificate of Tax and Pay Deducted (also known as an annual statement) that you receive from your employer in January.
If the amount is wrong, you must correct the tax return. You should also contact your employer to ensure that the annual statement is correct.
Distribution of interest on debt between spouses/spouse-equivalent partners/joint borrowers
Even if you have a loan jointly with someone else, it will only be reported by the bank for one person. The way in which you can distribute it will depend on whether or not you are married.
This distribution must be repeated every year in the tax return and both people concerned must make the change. The total amount must be the same regardless. For example, if interest on debt is reduced by NOK 10,000 by one person, it must be increased by NOK 10,000 by the other person. You must alter or add information on the lender, debt, interest on debt and the reason for the change.
Spouses can distribute both debt and interest on debt as they wish, but it must amount to 100 percent in total.
Spouse-equivalent cohabitants must distribute the debt and interest on debt as stated in the loan documents if you have taken out the loan together. You must then distribute both the debt and the interest on the debt according to the respective percentages that you each own. Check that you are stated as being spouse-equivalent cohabitants under item 1.3.
If you establish a contract between you which distributes the loan differently, e.g. because one has a low income, the debt and interest can be distributed in accordance with this contract.
You do not need to send us any documentation for this, but you must be able to present documentation if we ask for it.
If you alter, delete or add information concerning interest on debt, you must be able to document this through an annual statement or confirmation from the credit institution if we ask for it.