4.8.3 Debt abroad
Applies to the income year 2018
Under this item, you must enter the amount of debt you have abroad.
Does this item concern me?
The item concerns everyone who has debt abroad.
If you are resident in Norway for tax purposes, you are entitled to a deduction for debt. The deduction for debt will be limited ifcapital in real property is exempt from taxation in Norway under a tax treaty. You will then be entitled to a partial deduction for the debt. The limitation will be made when the distribution method is used to avoid double taxation.
However, the deduction will not be limited if you own a residential property or holiday home in another EEA state and the applicable tax treaty states that the capital is not taxable in Norway. For 2016, this applies to Belgium, Italy and Croatia. If you have claimed a deduction for debt in the country in which the house/apartment or holiday home is situated, you will not be entitled to deduct the same amount in Norway.
If you are resident in Norway for tax purposes, you are entitled to a deduction for debt. The deduction for debt will be limited if capital in the business is exempt from taxation in Norway under a tax treaty. You will then be entitled to a partial deduction for the debt. The requirements are that the business must be run from a permanent operating base and that the distribution method is used to avoid double taxation.
If you are resident abroad and you have taken on debt in order to promote an activity that will be taxed in Norway, you will be able to claim a deduction for your debt abroad.
How do I enter this in my tax return?
You must submit the income abroad in item 4.8.3.
Under the item, you must enter the lender's name, the debt and interest on debt in Norwegian kroner and the average exchange rate. Use Norges Bank's bid value as of 1 January 2019.
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 we ask for documentation, you must be able to document the following:
- debt and interest on debt with confirmation from the lending institution
- if you have a dwelling/holiday home in another EEA state, you must be able to document that you have not claimed a deduction for the debt in the country in which the dwelling is situated
- if you live abroad, that all or almost all of your income was earned in Norway. The basis for comparison is your total income before deductions in the various countries