Nobody likes taxes, but everyone has to pay them. Fortunately, Norwegian law provides for certain situations in which you can reduce the amounts paid to the local tax office. How can I make tax deductions in Norway? We give some examples.
Tax write-offs in Norway - interest on loans
People who live in Norway and pay off the loan can count on write-offs on this account. Interestingly, there are relatively few formalities. The Tax Office usually obtains the relevant data directly from the banks and goes to the preliminary tax return.
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However, it is always worth checking whether all the data has actually been sent to the form. If information on any of the financial obligations is missing, it will be necessary to provide a loan agreement with the bank and an annual summary provided by the bank.
Interestingly, tax deductions in Norway may also apply to loans taken out outside Norway, for example in Poland. However, this possibility does not apply to all people. Only those who either have property and permanent residence in Norway, or despite temporary residence, earn 90 percent (or more) of their income in this country.
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Write-off for foreign employees
Norwegian law also includes allowances for foreign workers. They can claim a 10 percent deduction on their gross income for the work they do, which is excluded from the credit interest deduction mentioned, and has a ceiling of 40000 kronor.
Speaking of foreign workers, tax deductions in Norway also provide for the status of a commuter from their home country. This status (Pendler) can be obtained if you have permanent residence in an EU or EFTA country (not including Switzerland) and commute frequently, or if the child or spouse resides in the home country.
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In this situation, you can use a number of other tax deductions instead of the aforementioned 10% write-off. This includes travel (calculated by kilometers, but also the cost of tickets and tolls at the gates), accommodation (no more than CZK 10000 per year), per diems and the aforementioned interest on loans paid abroad.
