Rettledning for utenlandske arbeidstakere og ... - Skatteetaten

Extended right to
deductions for persons
from EU/EEA countries who
have limited tax liability
Personal and family-related deductions
If you are resident in another EU/EEA country
and have limited tax liability to Norway, you
can be granted an extended right to
deductions if at least 90 per cent of your
income from employment, pension or
business activities is taxed in Norway.
The extended right to deductions applies to
most ordinary deductions. If you are covered
by the rules on extended right to deductions,
you are entitled, among other things, to the
full annual deduction for deductions that are
otherwise limited in proportion to how long
you stay in Norway during the income year.
You may also be entitled to i.e. the child-care
deduction for minding and care of children.
If you are married, your spouse’s income will
be taken into account when considering
whether you pay tax in Norway on at least
90 per cent of your combined income. If you
have a cohabitant with whom you have one or
more joint children, your cohabitant’s income
will be taken into consideration when you
claim the child-care deduction.
You must document that the conditions for
being granted deductions pursuant to the
rules for resident taxpayers are met. You must
provide sufficient information about your
(and your spouse’s) income outside Norway
for it to be possible to calculate whether at
least 90 per cent of your income from
employment, pension or business activities
was tax resident in Norway. If you are a
cohabitant and are claiming a child-care
deduction, you must also provide information
about your cohabitant’s income.
Deduction for interest on debt
If you live in an EEA country and have limited
tax liability to Norway, you can also deduct
interest on debt in accordance with the same
rules as a person resident in Norway. This only
applies if at least 90 per cent of your total
income is liable to tax in Norway. If you own
real property or are engaged in business
activities abroad that are not liable to tax in
Norway due to a tax treaty, the deduction for
interest on debt will be limited. Within the
EU/EEA area, this applies if you own real
property in Belgium, Bulgaria, Italy, Malta,
Portugal or Germany. If you own real property
in one of these countries and do not have any
taxable capital in Norway, the deduction for
interest on debt will in practice not apply.
You must provide sufficient information about
your income outside Norway for it to be
possible to calculate whether at least 90 per
cent of your income is liable to tax in Norway.
Foreign interest must be documented.
If you are claiming a deduction pursuant to
these rules, you cannot claim the standard
deduction for foreign employees.
If you are claiming a deduction for interest on
debt, you will in certain cases be taxed on
interest income etc. from Norwegian sources.
Self-employed persons
(owners of sole
proprietorships)
Permanent establishment
You are liable to tax in Norway if you are
engaged in business activities through a
permanent establishment in Norway.
Only the income that is related to the
permanent establishment is liable to tax in
Norway. Deductions are only granted for costs
relating to the business activities in Norway.
The income is taxed pursuant to Norwegian
rules. This means, among other things, that
you must calculate personal income from the
income that is liable to tax in Norway. You
must fill in form RF-1224E "Personal income
from sole proprietorship 2012". The
estimated personal income is transferred to
item 1.6.2 (estimated personal income –
other commercial activity) in your tax return.
If you are e.g. a doctor, auditor, engineer or
consultant (so-called free professions), you
may also be liable to tax in Norway when you
have stayed here for more than 183 days
during a 12-month period. This applies
irrespective of whether you have a permanent
establishment.
In principle, you are also liable to tax in
Norway when you are engaged in business
activities on the Norwegian continental shelf.
The tax treaties contain various rules that
limit tax liability.
You can find further information in the
guidelines "Start help for self-employed
persons etc." at skatteetaten.no.
Partners in businesses
assessed as partnerships
Businesses assessed as partnerships
(ANS, KS etc.) are not taxable entities under
Norwegian law. The company’s capital
and income are taxed with the partners
(assessment of partners).
Foreign partners are taxed in Norway if they
are engaged in business activities through a
permanent establishment in Norway through
their participation in the partnership. This
applies both to their share of the profit or loss
(Taxation Act section 10-41), any special
remuneration for work in Norway (Taxation
Act section 12-2 letter f) and additional
general income to personal partners
(Taxation Act section 10-42). Gains on
realisation of a holding in a Norwegian
partnership can be taxed in Norway when the
partner is deemed to have been engaged in
business activities in Norway through a
permanent establishment.
Companies assessed as partnerships have a
duty to submit form RF-1215 "Selskapsoppgave
for deltakerliknet selskap" (Partnership
statement for businesses assessed as
partnerships 2012 – in Norwegian only) and
form RF-1233 "Selskapets oppgave over
deltakernes formue og inntekt i deltakerliknet
selskap" (Partnership statement of
partners’ capital and income in a business
assessed as a partnership 2012 – in Norwegian
only). Partners in such businesses must
submit form RF-1221 "Deltakerens oppgave
over egen formue og inntekt i deltakerliknet
selskap" (Partner’s statement of own capital
and income in businesses assessed as
partnerships 2012 – in Norwegian only). For
further information, see guidelines RF-1222.
20 Selvangivelsen 2012 – Rettledning