Tax return for Guidelines to the individual items Brochures

Tax return for 2006 Guidelines to the individual items Brochures, supplementary information and other material are available from: www.skatteetaten.no and your local tax assessment office. Contents • Information about personal circumstances 1.3 - 1.5 • Income/ capital items 2.1 – 3.1.12 • Deduction/ debt items 3.2 - 3.6 • Other capital items 4.1 - 4.8 • Additional information • Topics • Provisional tax assessment • How much will your tax be? • Rates Some new rules for 2006 Shares New rules for the taxation of income from shares, see "Shares". Employers' coverage of medical treatment insurance and sickness expenses The tax exemption for employers' coverage of an employee's treatment expenses during illness and medical treatment insurance has been revoked with effect from 1 January 2006. Employers' coverage of phone expenses, broadband etc. From 1 January 2006, new rules apply to employers' coverage of electronic communication services, including phones and broadband for employees. See "Payments in kind - valuation". Free board for offshore workers The tax rules concerning free board for offshore workers have been changed in 2006. See separate information about this at skatteetaten.no. Individual pension agreements (IPAs) The right to deduct IPAs has been revoked with effect for payments made after 11 May 2006. Individual annuities Wealth tax has been introduced on certain individual annuities. See item 4.6.2 and ”Life insurance” .. Tax value of houses The tax value of houses and other real property has been increased by 25 per cent. Foreign nationals in Norway/Norwegians abroad - limited tax liability in Norway Persons with limited tax liability in Norway and who have 90 per cent of their income in Norway, may be entitled to the same tax assessment allowances as persons domiciled in Norway. Contact the tax assessment office for further information or see "Informasjon til deg som har inntekt eller formue i utlandet" at skatteetaten.no/selvangivelse Information about personal circumstances Brochures and forms etc. are available from skatteetaten.no and all local tax assessment offices. 1.3 Cohabitants with joint children/ assets/ debt Cohabitants who have joint children of the relationship must tick item 1.3.1. Cohabitants with joint assets/ debt tick item 1.3.2. On the tax assessment of children and cohabitants, See “«Parents and children» and «Spouses, registered partners and cohabitants. 1.5 Other information 1.5.1 Young people’s housing savings (BSU) The tax deduction is granted on the basis of a report submitted by the bank. If you are claiming a tax deduction for an amount saved in another EEA state, you must submit form RF1231 «Spesifikasjon av innskudd i utenlandsk bank mv. og BSU-sparing i annen EØS-stat» (Specification of deposits in foreign banks and BSU savings in another EEA state – in Norwegian only) and the Year End Certificate from the savings institution together with your tax return. When opening a housing savings account or transferring a housing savings account from one savings institution to another, you must enclose the BSU contract if it was entered into in another EEA state. 1.5.2 Lottery and betting winnings etc. Winnings from the following types of games of chance and lotteries are exempt from tax: • games of chance organised by Norsk Tipping AS, e.g. Lotto, Viking Lotto, Tipping and Oddsen • totalisator betting covered by the Act relating to Totalisator Betting, including Rikstoto • lotteries pursuant to the Lottery Act, including scratch cards, bingo etc. • games of chance and lotteries in another EEA state that correspond to games of chance or lotteries that are legal in Norway • publicly accessible lotteries etc. organised by the mass media • other chance winnings from Norwegian or foreign games of chance, competitions, lotteries etc. when the value of each individual win is NOK 10,000 or less. If overall tax-exempt lottery winnings in 2006 exceed NOK 50,000, you must enclose confirmation from the party who paid you the winnings. Other winnings than those mentioned above are liable to tax if the value of each individual win (the nominal value of the win without deduction for the stake) exceeds NOK 10,000. The amount must be entered under 3.1.12. Documented expenses (the stake) which are directly related to the taxable winnings should be entered under item 3.3.7. The tax exemption for winnings from games of chance and competitions does not apply if the winnings are deemed to be remuneration for work or activities. 1.5.3 Inheritance and gifts An inheritance or gift is not taxable income, but you must report the amount when the total value is NOK 10,000 or more. (Gifts from an employer or others with a less direct connection to the employment relationship are not, as a rule, gifts in the tax law sense, but are regarded as pay.) State the name, address and date of birth of the person from whom the inheritance or gift comes, and what the inheritance or gift consists of. You must also submit form RF-1615 «Melding om arv» (Report on inheritance – in Norwegian only) or form RF-1616 «Melding om gaver, gavesalg mv.» (Report on gifts, gift sales etc. – in Norwegian only) to the county tax collection office. It must be submitted irrespective of the amount of the inheritance or gift. Further information is available from the county tax collection office. 1.5.6 Capital, debts, income etc. abroad Declare all capital, debts and income abroad. This also applies when the assets or income are not taxable in Norway. Tick “Yes” if you have: • capital , e.g. real property, a time share apartment, household contents and moveable property, bank deposits, shares or bonds abroad • debts abroad • income abroad Information about foreign bank deposits etc. must be provided on form RF-1231 «Spesifikasjon av innskudd i utenlandsk bank mv. og BSU-sparing i annen EØS-stat» (Specification of deposits in foreign banks and young people’s housing savings (BSU scheme) in another EEA member state – in Norwegian only). If you became the owner of real property abroad during 2006, you must provide information about the type of property (holiday home, plot of land etc.), the country in which it is situated, when it was purchased (date), the purchase price and its estimated sales value, if known. Enter taxable income, assets and debts abroad under the relevant items in the tax return form. If you are of the opinion that the capital or income is not liable to tax in Norway, you must explain why. If you have paid tax abroad on the capital or income, you should state this. If you are claiming a deduction from your income or from your assessed tax for tax paid abroad, such payment must be documented. If you are claiming a deduction from your assessed tax for tax paid abroad (a credit deduction), you must complete form RF-1147 «Fradrag i norsk skatt for skatt betalt i utlandet (kreditfradrag) for lønnsmottakere, pensjonister og personlig næringsdrivende» (Deduction in Norwegian tax for tax paid abroad (credit deduction) for employees, pensioners and self-employed persons – in Norwegian only). If you are claiming a deduction from your income, the amount must be entered under item 3.3.7. If you receive income from employment that is taxed in another Nordic country or a pension paid from another Nordic country, you must complete form RF-1150 «Nedsettelse av inntektsskatt på lønn og pensjon» (Reduction in income tax on wages and pensions – in Norwegian only). The same applies if you are claiming a reduction in tax for that part of the tax levied on wage earnings earned abroad (pursuant to the one-year rule) or you have wage earnings that are exempt from taxation pursuant to a double taxation agreement. Capital in the form of real property abroad and income from or profit on the sale of such property is in principle liable to tax in Norway. Capital, income and such profits may be exempt from tax in Norway pursuant to a double taxation agreement with the country in which the property is located. If you have real property or are engaged in or take part in business activities abroad, you will not be granted the full deduction for interest on debt in Norway if the income from the real property or business activity is exempt from tax in Norway. Nor will you be entitled to a full deduction for debt if your capital in the form of real property or business activity is exempt from tax in Norway. Further information about tax liability for assets and income abroad can be obtained from your local tax assessment office and under «International» at skatteetaten.no/selvangivelsen/rettledninger Remember to check! Income items: 2.1 Pay and corresponding remuneration 2.1.1 Pay etc. Here, you enter pay, fees and other remuneration from employers, e.g. the benefit of the free use of a car, flying miles, wholly or partially free accommodation, free work clothes, the benefit derived from the exercising or sale of an option entitling the holder to sell or buy shares or primary capital certificates to or from the employer. The amounts are included in the Certificate of Pay and Tax Deducted. The benefit of low interest on loans from employers must be entered here. Paid interest is entered under item 3.3.1. On the valuation of payments in kind, see “Payments in kind – valuation”, . The free use of a vehicle is dealt with under “Cars”. In the case of persons classified as wage earners, any pay from labour market schemes etc., sick pay, maternity benefit, rehabilitation benefit, temporary disability benefit and unemployment benefit must be entered here. Remuneration you have received as a board member, member of a committee of representatives, other committee, council etc. must also be included under this item. Remember to declare taxable income for which you have not received a Certificate of Pay and Tax Deducted. If you received wages and other remuneration for work from a single employer or client for a total of up to NOK 1,000 in 2006, the amount is exempt from tax and is not to be declared. This only applies to wage earnings and not if the remuneration is income from self employment. If the employer or client is a taxexempt organisation, the payment is tax exempt if it does not exceed NOK 2,000 and the remuneration for work is not income from self employment. If you had wage earnings abroad, see "Informasjon til deg som har inntekt eller formue i utlandet" at skatteetaten.no/selvangivelse 2.1.2 Income which confers a right to claim seafarers’ allowance Income which confers a right to claim seafarers’ allowance must be entered here. Seafarers receive a separate Certificate of Pay and Tax Deducted for income that may confer a right to such allowance. Income which confers a right to claim seafarers’ allowance is income from work on board ships in service when this is the seafarer’s main occupation and the work involves spending at least 130 days on board during the income year. This requirement is regarded as being met for employees who are employed for the purpose of work on board and where the employment relationship is covered by a collective agreement which requires at least 130 working days on board during the year. Any remuneration paid to the seafarer through the employer, including tips etc., is reckoned to be income on board. Any profit which the seafarer has made from sales activities on board is also deemed to be income on board. The same applies to sickness benefit, pay and equivalent benefits during periods of illness or injury which take the place of such income on board, and certain payments in kind. The allowance is entered under item 3.2.13. Pay which confers a right to claim the special allowance for fishermen is entered under item 2.1.1. The allowance is entered under item 3.2.14. 2.1.3 Income from child care in childminder’s own home The income is entered here if the children are: • 11 years old or younger at the end of the income year (born in 1995 or later), or • 12 years old or older and have special care needs See “parents and children”. Income from child care in the child’s home is entered under item 2.1.1. 2.1.4 Surplus from expense allowances An expense allowance is a payment intended to cover expenses in connection with work, assignments or offices, e.g. travel, subsistence and car allowances. If the allowance exceeds the expenses, the surplus is liable to tax and must be entered under item 2.1.4. You will see from your Certificate of Pay and Tax Deducted what kind of allowance it concerns. For the calculation of surpluses or deficits, see «Expense allowances». Allowances that cover private expenses are liable to tax in full, e.g. allowances for travel expenses for travel between the home and the permanent place of work. Regarding foreign workers in Norway, see «International», on the duty to pay tax on an employer’s coverage of expenses for board and lodging and visits to homes located abroad. Allowances calculated by self-employed persons in connection with their business activities are deemed to be income from self-employment and are not deemed to be expense allowances. If a self-employed person receives an expense allowance as part of paid employment, the allowance will be treated in the same way as for other wage earners. 2.1.5 Other income from work Here, you must enter other earnings which are not income from self-employment, e.g. sales income and remuneration for work from craft or handicraft work in the home. Sales income must be declared after deducting the cost of materials. Gross earnings from the sale of garden or natural produce which is not income from self-employment, e.g. from the sale of berries, mushrooms and fish, are only liable to tax for amounts exceeding NOK 4,000 in the income year. The excess amount is entered here. 2.2 Employment-related pensions, annuities etc. Please provide information about any pension back payments you have received from the National Insurance scheme or from others (code 225 in the Certificate of Pay and Tax Deducted). The entire back payment is taxable in the year it was paid, but the local tax assessment office ensures that the tax will not be higher than it would have been if the pension had been taxed in the year or years to which the back payment refers. 2.2.1 Own pension from the National Insurance scheme The amounts in items 2.2.1 to 2.2.4 are provided in the Certificate of Pay and Tax Deducted/ Certificate of Pension Income and Tax deducted. 2.2.2 Own pension from other pension scheme than the National Insurance scheme The item includes payments from various other schemes: occupational pensions, early retirement pension (AFP), employment-related annuities/pensions, payments from individual pension agreements (IPAs), introductory benefit, private pension payments to retired farmers and foresters, foreign pensions etc. Oneoff payments that replace the right to such benefits must also be entered here. If you have received benefits in 2006 that have not been included, you must declare them. Pensions from another Nordic country must be entered here. Provide more detailed information about the pension on form RF-1150 «Nedsettelse av inntektsskatt på lønn og pensjon» (Reduction in income tax on wages and pensions – in Norwegian only). See «Informasjon til deg som har inntekt og formue i utlandet» at skatteetaten.no/selvangivelse The reinvestment by heirs of payments from a deceased person’s pension scheme Payments of one-off or replacement amounts from a pension scheme to a deceased’s estate must also be entered here. If heirs pay their proportionate share of the one-off amount into a separate individual pension agreement (IPA) within three months of the disbursement date, this part of the one-off amount shall not be declared in the tax return. The amount will be taxed when it is disbursed by the pension scheme (IPA). A surviving spouse in an undivided estate or a sole heir who has taken over liability for the debt of a deceased person may, with the same tax effect, reinvest the one-off payment within the same deadlines. See also item 3.3.5. 2.2.4 Supplementary benefit for spouse Supplementary benefit for a spouse from the National Insurance scheme and private pension schemes is found under codes 219 and 227 in the Certificate of Pension Income and Tax Deducted. 2.4 Children’s income from employment 2.4.1 Children aged 12 years or younger Children who are 12 years old or younger (born in 1994 or later) shall not submit a tax return. If the child has received pay, half of it must be entered in each of the child’s parents’ tax returns unless the parents wish to distribute the amount differently. If the parents do not live together, see «Parents and children». 2.6 Maintenance, annuities, children’s pension etc. 2.6.1 Taxable maintenance received Maintenance payments from separated or divorced spouses are liable to tax and must be entered here. Maintenance payments paid as a one-off amount are not liable to tax. Maintenance payments from former spouses paid by a public agency are found in the statement from NAV (Norwegian Labour and Welfare Organisation – formerly the National insurance Organisation), under code 248. Child maintenance payments, special grants pursuant to the Children Act and advance payments of child maintenance pursuant to the Act relating to advance payment are not liable to tax. 2.6.2 Other income Here, you enter e.g. non-employment-related annuities, income from private pension payments to retired farmers/foresters outside agriculture and forestry (e.g. free accommodation and other payments in kind), payments from trust funds and other taxable regular benefits. The taxable part of annuities from Norwegian life insurance companies is stated in the statement you receive from the company, see “Life insurance”. Regarding annuities from foreign companies, see «Life insurance» . Employment-related annuities should be entered under item 2.2.2. Here, you must also enter back pay and back payment of pensions after a death (found under code 214 in the Certificate of Pay and Tax Deducted). Only the part that exceeds 1 ½ times the basic amount (G) in the National Insurance scheme at the time of death is liable to tax. Until 1 May 2006, 1 ½ times the basic amount was NOK 91,049, and after 1 May it was NOK 94,338. 2.6.3 Children’s pension Applies to children’s pensions for children who are 16 years old or younger (born in 1990 or later). The amount is found under codes 220 and 228 in the child’s Certificate of Pay and Tax Deducted. Child benefit and the cash support for care of own children in the home are tax exempt and shall not be declared in the tax return. 2.7 Income from self-employment Self-employed people will be sent the brochure «Tilleggs-informasjon for næringsdrivende mv.» (Additional information for self-employed people – in Norwegian only). Persons who started a business in 2006 without the tax authorities being informed about it, will be sent the «Selvangivelse for lønnstakere og pensjonister mv.» (Tax return for wage earners and pensioners etc. – in Norwegian only). You can choose whether to submit the tax return for self-employed people via Altinn instead. If you have started a business, you will find information about the items that only apply to self-employed people in «Tilleggsinformasjon for næringsdrivende mv.» (Additional information for self-employed people – in Norwegian only). This brochure is available at skatteetaten.no and at local tax assessment offices. Remember to submit all the mandatory forms. 2.8 Income from housing or other real property Taxable income from housing or other real property in Norway and abroad must be entered under items 2.8.2 and 2.8.5. The benefit of living in your own house is exempt from tax. If you have let such a house, the income is exempt from tax if you: • have let up to half the house measured in terms of rental value • have let the whole or a major part of your house for less than 183 days in the income year (the letting period must be less than half the ownership period if you purchased the house in 2006) See “Housing” 2.8.1 Share of income for the owner of a unit in a housing cooperative/jointly-owned property Here, you enter your share of the housing cooperative’s/jointly-owned property’s income. The amount is found in the statement you receive from the housing cooperative/jointly-owned property. If you have let the unit and the rental income is liable to tax, see “Housing”. 2.8.2. Net income from the letting of real property unrelated to a business activity Here, you must enter • net income from the letting of a house where the rental income is liable to tax (accounts-based tax assessment) • Net income from the letting of a holiday home that is not used by the owner (accounts-based tax assessment) • net income from the letting of land See “Housing” 2.8.3. Taxable income from holiday homes If you own a holiday home which you use yourself, you will not be taxed on its use. If you let the holiday home, 85 per cent of the rental income in excess of NOK 10,000 is liable to tax. See the example in “Housing”. If you do not use the holiday home yourself, but only let it, all the rental income is liable to tax. 2.8.4. Taxable profit on the realisation (sale etc.) of housing, land and other real property The profit on the sale of a house is tax-free if you: • have owned the house for more than a year • have used it as your own home for at least one of the last two years before the sale The profit on the sale of a holiday home is tax-free if you: • • have owned the holiday home for more than five years, and you have used it as your own holiday home for at least five of the last eight years before the sale If the conditions for tax exemption are fulfilled, you will not be permitted to deduct any loss. Profits/losses on the sale of land are taxable/deductible. As a rule, profits/losses on the sale of farms are taxable/deductible. For exceptions to this rule, see “Housing”. 2.8.5 Income from real property abroad Here, you enter taxable income from real property abroad. State the country in which the property is situated. See “Real property abroad”. 3.1 Capital income and other income For children’s capital income, see “Parents and children”. 3.1.1 Interest income on bank deposits etc. Here, you enter interest on: • Bank deposits in Norway (including salary accounts) • Savings in Norwegian housing associations • Deposits with organised Norwegian savings associations • Deposits in the joint funds of the Public Guardian • Loans and savings in Norwegian Cooperative societies or consumer associations If there is too little space, please enclose a separate sheet or complete form RF-1006 «Spesifikasjon av postene 3.1.1 mv. i selvangivelsen» (Specification of the items in the tax return – in Norwegian only). Interest on bank deposits abroad should be entered under item 3.1.11. In the case of joint bank deposits, the bank will only have reported the interest for one of the owners. The owners must therefore divide the income between themselves in proportion to their holdings. Married couples may choose a different distribution of the income. 3.1.2 Other interest income This item includes interest on: • outstanding claims in Norway • deposits by house tenants in Norway • mortgage bonds in Norway • yield from index-linked bonds and bank savings with equity-indexed yield • other Norwegian debt certificates • land acquisition bonds • obligatory loan deposits in Norwegian cooperative enterprises etc. • yield from bond unit trusts and money market funds Interest on overdue wages, pensions, holiday pay etc. should be entered under item 3.1.12. Interest paid on tax refunds is not liable to tax and shall not be entered. Interest on outstanding claims abroad etc. should be entered under item 3.1.11. If there is too little space, enclose a separate sheet or complete form RF-1006 «Spesifikasjon av postene 3.1.1 mv. i selvangivelsen» (Specification of the items in the tax return – in Norwegian only). 3.1.3 Interest income subject to extra tax With effect from 2006, interest income on loans furnished by personal taxpayers to limited liability companies, public limited liability companies, equivalent companies and groups of companies, corresponding foreign companies and participant-taxed companies will be subject to extra tax. The extra tax is payable in addition to ordinary tax on interest income (the interest must therefore also be entered under item 3.1.2). The extra tax will be levied on actual accrued interest after tax that is in excess of a calculated //risk-free return. The interest income will be calculated for each month in accordance with the following formula: Actual accrued interest Ordinary income tax (actual accrued interest x the tax rate for ordinary income (for the rates, ) Risk-free return (balance of loan x risk-free interest) = Interest income liable to extra tax The balance of the loan is defined as the balance at the start of the month. If a loan is taken up during a calendar month, the balance of the loan on the borrowing date will apply. If a debt instrument is issued at a discount, the balance of the loan will be calculated on the basis of the original issue price. If you have furnished several loans to the same company, the loans will be dealt with together. If you have furnished loans to several companies, the interest income will be calculated for each company. For 2006, the risk-free interest rate has been stipulated at: Jan./Feb.: 1.7 % March/April: 1.7% May/June: 1.7% July/Aug.: 2.1% Sept./Oct.. 2.1% Nov./Dec.: 2.4%. If you submit your tax return electronically, you can use auxiliary form RF-1070 for the calculation of interest income that will be subject to extra tax. The calculation will then take place automatically when you enter the balance of the loan and the accrued interest for each month. 3.1.4 Yield from endowment insurance Here, you enter the yield earned in 2005 on the savings part of life insurance policies (endowment insurance) with guaranteed yield. You will find the amount in the statement from your insurance company. Here, you also enter taxable yield from payments from endowment insurance with investment options without guaranteed yield (unit-linked). You will find this amount in the annual statement if the insurance has been taken out with a Norwegian insurance company. Taxable yield from life insurance with or without guaranteed yield taken out with companies outside Norway must be entered under item 3.1.11. 3.1.5 Taxable share dividend etc. from form RF-1088 “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only). Here, you enter share dividend from Norwegian limited companies as specified in form RF-1088 “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only.) The same applies to interest on primary capital certificates. RF-1088 is based on information provided to the Tax Administration by the companies. You enter the taxable dividend (after deduction of the risk-free return) under this item. All personal shareholders must check and return RF-1088 within the deadline for submitting their tax returns. See “Shares etc.”. If the information about the number of shares, the acquisition date or dividend in RF-1088 is correct, you should enter the amount specified in item 110 in RF-1088 under item 3.1.5 in your tax return. If the information is incorrect, you should correct RF-1088 and inform the company about the error. The same applies if you are erroneously registered as a shareholder in a company. Corrected taxable dividend should be entered under item 3.1.5 in your tax return. The guidelines to RF1088 contain more information about how taxable dividend is calculated, as well as examples of calculations. If you submit RF-1088 via Altinn, you will receive an updated version within three or four days. The updated version can be used when completing your tax return. If you have shares or primary capital certificates and have not received RF-1088 for these shares, you must enter the share dividend/ interest for these shares/primary capital certificates under item 3.1.7. See further discussion of the new tax rules for share dividend (the shareholder model) in “Shares etc.” , or at skatteetaten.no. 3.1.6 Taxable dividend from units in unit trusts Here, you enter taxable dividend from units in Norwegian and foreign unit trusts. In the case of units in unit trusts (both Norwegian and foreign) which you owned on 31 December 2006, it is the dividend after the deduction of the risk-free return that is liable to tax and must be entered under this item. All unit holders in Norwegian unit trusts should have received a balance statement from the investment management company or the Norwegian Central Securities Depository. This also applies to unit holders in certain foreign unit trusts. The same information has been sent to the tax authorities. The balance statement shows taxable dividend. For unit trusts, the company should have calculated the risk-free return. You must check that the amounts are correct and correct any errors. Yield from units in Norwegian bond unit trusts and money market funds should be entered under item 3.1.2. If you have received dividend on a unit in a foreign unit trust for which you have not received a statement as described above, you must complete and enclose form RF-1059 “Skjema for fastsettelse av anskaffelsesverdi (inngangsverdi) og beregning av skattepliktig utbytte for aksjer/andeler eid per 31.12.2006” (Form for the stipulation of the acquisition value (opening value) and calculation of taxable dividend for shares/ units owned as of 31.12.2006 – in Norwegian only). See guidelines RF-1072 for the rules and completion of RF-1059. See further discussion of the new tax rules for share dividend (the shareholder model) in “Shares etc.” , or at skatteetaten.no. 3.1.7 Other taxable share dividends etc. Here, you enter other taxable share dividends etc. than those entered under item 3.1.5 or 3.1.6. This applies, among other things, to dividend etc. on shares in foreign limited companies and taxable dividend on shares/ interest on primary capital certificates in Norwegian companies for which you have not received form RF-1088 “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only). Under item 3.1.7 a) you must enter taxable dividend etc. on shares and primary capital certificates which you owned on 31 December 2006. You must complete and enclose form RF-1059 “Skjema for fastsettelse av anskaffelsesverdi (inn-gangsverdi) og beregning av skatte-pliktig utbytte for aksjer/andeler eid per 31.12.2006” (Form for the stipulation of the acquisition value (opening value) and calculation of taxable dividend for shares/ units owned as of 31.12.2006 – in Norwegian only). See guidelines RF-1072 for the rules and for completion of RF-1059. Under item 3.1.7 b) you must enter dividend etc. from shares and primary capital certificates which you realised (sold, redeemed etc.) during 2006. In such cases, the entire dividend will be taxable (i.e. there is no risk-free return because you are required to have owned the shares etc. on 31 December in order to qualify for the risk-free return). See further discussion of the new tax rules concerning share dividend (the shareholder model) in “Shares etc.” , or at skatteetaten.no. 3.1.8 Taxable profit on the realisation (sale etc.) of shares etc. in form RF-1088 “Oppgave over aksjer og grunn-fondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only) Here, you enter any taxable profit on shares specified in form RF-1088 “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only.) The same applies to taxable profit on primary capital certificates. See “Shares etc.”. All personal shareholders must check and return RF-1088. The deadline for submitting the form is the same as for submission of your tax return. If the information in the statement is correct, you must transfer the amount stated in item 120 (in RF-1088) to item 3.1.8 in your tax return. If the information in the statement is incorrect or incomplete, you must correct the statement. The corrected taxable profit must be entered in the tax return. RF-1088 is based on information reported by the companies concerned. If you have realised shares or primary capital certificates but not received “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only) for them, you must instead complete RF-1061 “Oppgave over realisasjon av aksjer mv.” (Statement concerning the realisation of shares etc.) and enter the profit under item 3.1.10. Information about the new tax rules for profit on shares (the shareholder model) is provided in “Shares etc.” , and at skatteetaten.no. Item 3.1.9 Taxable profit on the realisation (sale etc.) of units in securities funds Here, you enter any taxable profit on the redemption, sale or other realisation of units in Norwegian and foreign securities funds (e.g. unit trusts, bond unit trusts, money market funds, combination funds etc.). Unit holders in Norwegian securities funds who have realised units during the course of the year will receive a realisation statement from the investment management company or the Norwegian Central Securities Depository. The same applies to individual unit holders in some foreign securities funds. Corresponding information is sent to the tax authorities. The realisation statement contains information about any taxable profit in connection with realisation. You must check that the amounts are correct and correct them if they are incorrect. If you have realised units in foreign securities funds for which you have not received a statement, you must complete and submit form RF-1061 “Oppgave over realisasjon av aksjer mv.” (Statement concerning the realisation of shares etc. – in Norwegian only). Taxable profits must be entered under item 3.1.9 in your tax return. 3.1.10 Taxable profit on the realisation (sale etc.) of shares etc. not included under items 3.1.8 and 3.1.9. Here, you enter other profits on shares etc. than those entered under items 3.18. or 3.1.9, including: • shares in foreign companies • shares/ primary capital certificates in Norwegian companies for which you have not received form RF-1088 “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only) • bonds (only liable to tax when the bond is owned as part of your business or is a multiple debt instrument) If you have realised shares in foreign companies or shares/ primary capital certificates in Norwegian companies for which you have not received RF-1088, you must complete and submit RF-1061 “Oppgave over realisasjon av aksjer mv.” (Statement concerning the realisation of shares etc. – in Norwegian only). For information about the calculation of such profits, see the guidelines RF-1248 (in Norwegian only). There is no separate form for profits on the sale of bonds. The calculation should be entered on a separate sheet. See further discussion of the new tax rules for share dividend (the shareholder model) in “Shares etc.” , or at skatteetaten.no. On the sale of foreign securities, see «Informasjon til deg som har inntekt eller formue I utlandet” at skatteetaten.no. 3.1.11 Income from abroad Here you enter all income from abroad which is liable to tax in Norway and which is not entered under other items. This applies, among other things, to interest from foreign bank deposits, bearer bonds, units in foreign bond unit trusts and outstanding claims against foreign debtors. It also applies to income from holdings in foreign enterprises which is not income from self-employment. Any profit from the sale or other realisation of real property abroad must be entered here if the profit is liable to tax in Norway. See “Real property abroad”. Deposits in and interest from foreign banks and young people’s housing savings accounts (BSU) in another EEA state must be specified on form RF-1231. Taxable annual yield from endowment insurance taken out in another EEA state is also entered here. Taxable yield on the disbursement of endowment insurance with an investment option without guaranteed yield (unit-linked insurance) from companies in another EEA state must also be entered here. The tax authorities may request documentation. For more information about the calculation of such yield, see «Life insurance». If you took out life insurance (endowment insurance) with a company in another EEA state before 1 January 2004, you were entitled, for the income year 2004, to demand to be taxed on yield from previous income years if you were domiciled and therefore liable to tax in Norway during the years in question. If you did not submit such a demand, you will be taxed, when the insurance is disbursed, on the amount paid in premium prior to 1 January 2004 and on the total yield prior to that date. If you have taken out a life insurance policy (endowment insurance) with or without guaranteed yield with a foreign insurance company outside the EEA area, you enter the whole amount disbursed here (only applies to contracts entered into after 1 January 1986). Income from real property abroad must be entered under item 2.8.5. Taxable wage earnings must be entered under item 2.1.1. 3.1.12 Other income Here, you enter all other taxable income in Norway not included under the items above, including: • taxable winnings (for information about tax-free winnings, see item 1.5.2) and finder’s fees • any profit on the sale (realisation), lapsing and exercising of non-employment-related options and profits on the sale (realisation) of other securities • any discount payment received in connection with the repayment of fixed-interest loans before the due date, which is not income from self-employment • currency gains • interest on overdue payment of wages, pensions, holiday pay etc. • the taking to income of a negative balance or a positive profit and loss account • interest for which you were granted a deduction in 2005 and which fell due for payment in 2006 without being paid, see item 3.3.1. (does not apply to interest expenses relating to business activities subject to a bookkeeping duty). If the interest is paid in later, it will be deducted from income in the year in which it is paid. Please specify the income in a separate attachment. Deduction items 3.2 Deductions from income from employment etc. 3.2.1 Minimum standard deduction from own income The minimum deduction is a standard deduction from wage earnings, pensions and similar income. If the actual expenses relating to your employment or work are greater than the minimum standard deduction, you can claim a deduction for these expenses instead of the minimum standard deduction, see item 3.2.2. If you have wage earnings or similar of NOK 179,800 or more, you are entitled to a minimum standard deduction of NOK 61,100. If you do not have wage earnings, but receive a pension, periodic benefits etc. totalling NOK 213,000 or more, the minimum standard deduction is NOK 51,100. For information on calculating the minimum standard deduction in other cases, see “Minimum standard deduction – calculation” . If you have income from self-employment, you do not normally qualify for the minimum standard deduction. If your self-employment consists of providing child care in your own home, and the children are 11 years old or younger or have special care needs, the income will be included in the basis for calculating the minimum standard deduction in the same manner as wage earnings. The net income from selfemployment must be entered under item 2.1.3. If you have been resident in Norway for only part of the year, the minimum standard deduction will be reduced in proportion to the number of whole or part months of the income year during which you have been resident here, see «Informasjon til deg som har inntekt eller formue I utlandet” at skatteetaten.no 3.2.2 Actual expenses This item is used instead of item 3.2.1 when your actual work-related expenses are greater than the minimum standard deduction. The expenses must be specified. The tax authorities may require documentation of the expenses. Examples of such expenses: • work clothes (if there is a great deal of wear and tear on clothes) / uniforms • specialist literature • moving house in connection with taking up employment • voluntary medical and accident insurance (limited to NOK 700, married couples cannot claim a higher combined reduction than NOK 700) • home office expenses • subsistence expenses for business travel not involving an overnight stay (extra expenses for board and lodging on business travel involving overnight stays are not, however, included, see Item 3.2.7) • subsistence expenses in connection with absences from the home of 12 hours or more without an overnight stay in connection with overtime, roster duty, long journeys to and from work etc. • a client’s premium for voluntary social insurance for the first 16 days • expenses for a stand-in (substitute) • transport expenses for job-related travel/ work-related travel • maintenance and/or updating of education (further information can be obtained from the local tax assessment office) • expenses for tools Any deficit on expense allowances from an employer for the coverage of such costs can also be entered under item 3.2.2 unless you are claiming the minimum standard deduction. 3.2.4 Minimum standard deduction from supplementary benefit for spouse You are entitled to a separate minimum deduction from the amount in item 2.2.4. The minimum standard deduction is 24 per cent, but it may not exceed NOK 51,100. The minimum standard deduction cannot be less than NOK 4,000 unless the supplementary benefit for the spouse is less than that amount. 3.2.5 Minimum standard deduction from child’s income You are entitled to a separate minimum standard deduction from wage earnings entered in item 2.4.1. If you have several children who are 12 years old or younger (born in 1994 or later) who have received wage earnings, a minimum standard deduction should be made from the earnings of each child. If the child’s income has been divided between the parents, the minimum standard deduction must also be divided between them. The minimum standard deduction is calculated as shown in “Minimum standard deduction – calculation” . 3.2.6 Minimum standard deduction from children’s pension If you are 17 years old or older (born in 1989 or earlier) and receive a children’s pension, you are entitled to a separate minimum standard deduction from the children’s pension entered under item 2.2.1 and/or item 2.2.2. The minimum standard deduction comes in addition to the minimum standard deduction from any wage earnings. The deduction is calculated as for other pensions, see “Minimum standard deduction – calculation”. Parents who receive a pension for children who were 16 years old or younger in 2006 (born in 1990 or later) are entitled to a separate minimum standard deduction based on the amount in item 2.6.3. If the amount concerns several children, a minimum standard deduction will be made from each child’s pension. The minimum standard deduction will be based on the whole children’s pension irrespective of how the spouses have divided the income between themselves in their tax returns. The minimum standard deduction is then divided between the spouses in proportion to the division of the children’s pension between them. For information about the division of children’s income etc., see «Parents and children». 3.2.7 Extra expenses for board and lodging etc. in connection with stays away from home If, because of your work, you have to stay somewhere other than your home, you are entitled to a deduction for extra expenses resulting from the absence, provided that you have covered the expenses yourself. It does not count as residence away from home if the overnight absence is due to staying at your place of work for up to 48 hours and this is part of your ordinary working hours, as in the case of shift work, work on a mobile workplace and continuous periods of duty. A deduction of NOK 75 per day is normally granted for extra expenses in connection with such absences from the home, but only if you are away from home for more than 12 hours. The deduction is included in the minimum standard deduction, or in item 3.2.2 if the minimum standard deduction is not claimed. Extra subsistence expenses, If you can document subsistence expenses in connection with travel relating to your job/business, you will be entitled to a deduction for these expenses with no reduction for cost savings in the home. You do not have to send documentation until the tax assessment office requests it. If the expenses are commuter expenses, the documented expenses must be reduced by NOK 70 per day for cost savings in the home. The conditions for being classified as a commuter are described in “Commuters” . You can also claim a deduction of NOK 40 per day for petty expenses. If you are unable to document subsistence expenses, you can claim a deduction at a standard rate, see below. Self-employed persons only enter the deduction under this item if their expenses qualify as commuter expenses. If the expenses have been incurred in connection with business activities, they must be documented and entered in the business accounts. Deduction rates - Norway If you have covered all the subsistence expenses yourself, the deduction will be calculated at the following rates per day: • stays at hotels when breakfast is not included in the room price: NOK 460 • stays at hotels when breakfast is included in the room price: NOK 385 • stays in guest houses and similar (without separate cooking facilities): NOK 256 • stays in a bedsit/ Portakabin (with cooking facilities) and private accommodation: NOK 169 Petty expenses of NOK 40 per day are included in the rates. If you are claiming a deduction of more than NOK 169, you must substantiate what type of accommodation is involved. By «substantiate» we mean that you must provide a statement specifying as a minimum the departure and return dates, the name of the place of accommodation and whether it is a hotel, a guest house or similar. If the expenses are greater than the rates listed above, you will be granted a deduction for the documented expenses. If you receive free board in whole or in part, you will only be granted a deduction for documented expenses. Deduction rates - abroad If you can substantiate that you have stayed at a hotel during travel abroad, you will be granted a deduction at the rate applicable to the country in question pursuant to the agreement concerning travel abroad at the state’s expense. (The government rates for night supplement and subsistence allowance will be reduced by 25 per cent with effect from the 29th day in connection with continuous stays at the same place of work.) If you can substantiate that you have stayed at a hotel, you will be granted a deduction at the rate for guest houses or bedsits/ Portakabins pursuant to the same rules as apply in Norway. Number of days absent from the home If you live somewhere other than your home all year, the number of days absent is normally calculated as follows: • without Saturdays off: 280 days • every other Saturday off: 255 days • every Saturday off: 240 days If you do not travel home every week, the number of days absent must be increased correspondingly. Home visits If you have free board at your workplace, you can claim a deduction for extra subsistence expenses in connection with home visits. The deduction is NOK 75 per home visit unless you can document higher expenses. The deduction of NOK 75 applies when the journey home does not entail an overnight stay but lasts for six hours or more and the expenses are not covered by your employer. Accommodation expenses If your work requires you to live away from home, you will generally only be allowed to deduct documented accommodation expenses. If you live in a Portakabin or caravan which you own yourself, you will be allowed a deduction at a rate of NOK 45 per day. Self-employed persons only enter the expenses for board under this item if the expenses are commuter expenses. If the expenses have been incurred in connection with business activities, they must be documented and entered in the business accounts. The conditions for qualifying as a commuter are described in “Commuters” . Real home in another EEA state Persons whose work in Norway requires them to live away from home in another EEA state, can claim a deduction for board, lodging and petty expenses in connection with the period of work. If you are claiming the «standard deduction for foreign employees» (see item 3.3.7), the expenses must be included under that item. See “Informasjon til deg som har inntekt eller formue I utlandet” at skatteetaten.no Deficits on expense allowances for board and/or lodging Deficits on expense allowances received in paid employment must be entered under item 3.2.7. A deficit arises if the allowance does not cover the documented extra expenses for board and/or lodging. If you are unable to document your total extra expenses for board as a result of living away from home, you should assume an expense of NOK 169 per day for all such allowances paid during the year when calculating the deficit. Deductions for deficits greater than this require documentation of the expense incurred for each day of absence from the home. You must be able to document deficits on allowances for board and lodging in connection with business travel or commuting periods. Please note that any deficit on a subsistence allowance for business travel that does not entail an overnight stay must be entered under item 3.2.2 unless you are claiming the minimum standard deduction. If you claim the minimum standard deduction, any such deficit is included. 3.2.8 Deduction for travel between the home and permanent workplace (travel to/from work) You are entitled to a deduction for travel between your home and your permanent workplace (travel to/from work) on the basis of the estimated travelling distance in kilometres. The travelling distance is calculated on the basis of the shortest distance by road between the home and the workplace or by scheduled public transport, excluding air travel. The deduction is NOK 1.40 per km. If the total travelling distance, including home visits (see item 3.2.9), exceeds 35,000 km, the rate will normally be NOK 0.70 per km for the number of kilometres in excess of 35,000. The deduction is only given for the amount in excess of NOK 12,800. If you travel for at least five days a week back and forth between your home and workplace, and the distance is more than 19.5 kilometres in each direction, you may be entitled to the travel deduction. In the case of shorter distances, you may be entitled to a deduction if you: • have made more than 230 journeys during the year (return journeys), or • are entitled to a deduction for home visits if staying away from home (commuting periods), see item 3.2.9 See “Travel to/from work”. 3.2.9 Deduction for travel expenses for home visits If your work requires you to live away from home, you may be entitled to a deduction for travel expenses for home visits. The rules and rates for such deductions are the same as for travel to/from your permanent workplace (travel to/from work), see item 3.2.8. If you have travelled by air, different rules apply, see the brochure «Pendlere, bosted, skatteforhold» (Commuters, place of residence, tax issues – in Norwegian only). If you claim a deduction for air travel, you enter the deduction in the field for road tolls and ferry expenses. Air travel expenses may be deducted even though they are less than NOK 3,300. You are only entitled to a deduction for expenses in excess of NOK 12,800, including deductible expenses for road tolls, ferry travel and air travel. Expenses in connection with home visits and travel between the home and workplace are dealt with together. Persons whose work in Norway requires them to live away from home in another EEA state, and who commute to their home abroad, are entitled to claim a deduction for travel to their home. If you are claiming the «standard deduction for foreign employees» (see item 3.3.7), the expenses must be included there, and they cannot be deducted separately. See « Informasjon til deg som har inntekt eller formue I utlandet” at skatteetaten.no 3.2.10 Deduction for child-care expenses (child-care deduction) If you have child(ren) who are eleven years old or younger (born in 1995 or later), you can claim a childcare deduction for expenses relating to the care of children living at home (expenses for a childminder, day care centre, before and after school hours supervision scheme etc.). The deduction is limited to: • NOK 25,000 for one child • NOK 30,000 for two children The limit is increased by NOK 5,000 for each additional child. You can also claim child-care deduction if you have older children with special care needs living at home, e.g. if a child needs continuous supervision because of a disability. You must document the circumstances by providing a medical certificate, statement from the child welfare service or similar. You must be able to document or substantiate the expenses. Extra expenses for the supervision of children due to illness or other lasting impairment that do not qualify for deduction because of the limitation on the amount, may be deducted as a special allowance for major sickness expenses, see item 3.5.4. Extra travel expenses to and from the childminder/ care facility also qualify as expenses in this context. If you use your car, the set expense is NOK 1.40 per km. If the transport takes place in connection with driving to and from your workplace or in connection with job-related travel, only the expenses relating to the extra travel (extra travelling distance) are deductible. If you use scheduled public transport, the expenses will be stipulated as the extra expenses incurred by using such transport. Any tax-free child-care benefit received must be deducted from the expenses. Such benefit is specified under code 245 in the Certificate of Pension Income and Tax Deducted from the Norwegian Labour and Welfare organisation (formerly the National Insurance Service). Cash support for care of own children in the home will not reduce the deduction. The term children also includes adoptive children, foster children and children in your care when the relationship resembles adoption and you do not receive a foster home allowance. Married couples and cohabitants with joint children can choose themselves how they wish to divide the deduction between them. For information about the division of the child-care deduction, see “Parents and children”. 3.2.11 Union dues Up to NOK 2,250 in union dues can be deducted, or a proportionate part of the amount if union dues have only been paid for part of the year. Union dues are specified in the Certificate of Pay and Tax Deducted, code 311. 3.2.12 Premium for job-related pension scheme The amount is specified under code 312 in your Certificate of Pay and Tax Deducted. You are entitled to a deduction for premium for, among other things: • municipal/county authority pension schemes • Norges Bank’s pension fund • pension schemes pursuant to the Act relating to Occupational Pensions • pension schemes pursuant to the Act relating to Defined-contribution Pensions • pension schemes in state enterprises • the Norwegian Public Service Pension Fund • pension schemes agreed in collective agreements in the workplace 3.2.13 Seafarers’ allowance The amount is calculated on the basis of the income under item 2.1.2 and amounts to 30 per cent of this income. The maximum deduction is NOK 80,000. 3.2.14 Special allowance for fishermen and hunters You will find the amount to be deducted from your income from fishing and hunting in form RF-1213 «Oppgave for beregning av næringsinntekt for lottfiskere og særskilt fradrag innen fiske og fangst» (Statement concerning the calculation of income from self-employment for fishermen (with a share in a partnership/cooperative) and the special allowance in connection with fishing and hunting – in Norwegian only). The conditions for qualifying for the allowance are described in the guidelines to the form. The maximum deduction is NOK 80,000. If you are entitled to both seafarers' allowance and the special allowance for fishermen and hunters, the maximum combined amount you can deduct is NOK 80,000. 3.2.15 Allowance in connection with agriculture See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 3.2.16 Special allowance in connection with reindeer husbandry See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 3.2.17 Special allowance in connection with slate quarrying See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 3.2.18 Self-employed persons’ premium for additional national insurance to cover sick pay from the National Insurance scheme See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 3.2.19 Deficit for the year from business activities See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 3.3 Capital costs and other deductions 3.3.1 Interest on debt Normally, you are entitled to deduct all interest accrued during the income year. You cannot claim a deduction for interest that has fallen due but not been paid in 2006 (defaulted interest payments) unless the interest pertains to a business with a bookkeeping obligation. You will not be entitled to deduct such defaulted interest until the year in which you actually pay it. For student loans from the Norwegian State Educational Loan Fund, deductions are only allowed for interest that has been paid. Remember to enter interest on any debts to private individuals and your employer. For information about the deduction of debt and interest on debt for persons with real property or business activities abroad, see “Real property abroad” . You are also entitled to deduct penalty interest on the overdue payment of interest on debt, and interest and charges paid in connection with credit purchases. Certain formal conditions and limitations on the size of the deduction apply to credit purchases. Your local tax assessment office can provide further information. It is not permitted to enter pre-paid interest for 2007 or later years. The same applies to interest that has been remitted. The interest charged on underpaid tax cannot be deducted (does not apply to penalty interest on overdue payment). In cases where several people have a joint loan and the bank reports the loan for one of the borrowers, the borrowers must themselves divide the deduction between themselves in proportion to their liability. Married couples may choose a different distribution of the deduction. 3.3.2 Interest on debt – abroad Interest on debt owed to a foreign creditor must be documented. For information about deductions for debts and interest on debt for persons with real property or business activities abroad, see “Real property abroad” . 3.3.3 Benefits derived from a surrendered property outside agriculture and forestry etc. Benefits derived from surrendered property Here you enter benefits you receive in connection with real property unrelated to agriculture and forestry, i.e. the value of right of occupancy, payments in kind and any cash payments pursuant to an agreement on such benefits (the provision of accommodation etc. for retired farmers). Note that the right of occupancy must also be entered as income in form RF-1189 «Årsoppgjør for utleie mv. av fast eiendom» (Annual accounts for the letting etc. of real property – in Norwegian only). Insurance and maintenance expenses for the house shall be entered in the same form. You must enter the income under item 2.8.2 of the tax return. Any loss should be entered under item 3.3.12. Maintenance payments Child maintenance payments or special contributions pursuant to the Children Act are not deductible. Maintenance payments to a separated or divorced spouse are deductible. Maintenance payments made through the Norwegian Labour and Welfare Service’s (NAV) debt collection unit (formerly the National Insurance debt collection unit) are specified in the statement from NAV (formerly the National Insurance Service). Please note that the statement may contain both deductible payments (maintenance payments to a spouse) and non-deductible maintenance payments (child maintenance). Only deductible maintenance payments should be entered under item 3.3.3. Maintenance payments deducted by your employer (Certificate of Pay and Tax Deducted, codes 313 and 316) must not be entered in your tax return. Your local tax assessment office can demand documentation of maintenance payments you have paid directly to the recipient of the maintenance. 3.3.4 Share of costs in a housing cooperative (housing association or limited liability housing company) and in a jointly-owned property The amount is specified in the statement from the housing cooperative or jointly-owned property. Owners of shares in a jointly-owned property who have not received a statement can obtain the required information from the board of the property or its accountant. If you let a house/apartment in a housing cooperative (housing association or limited liability housing company) or jointly-owned property, that is subject to accounts-based tax assessment, your share of the cooperative/property’s costs shall not be entered here. See “Housing”. 3.3.5 Deductible payments paid into individual pension agreements (IPAs) The right to deduct payments paid into individual pension agreements has been revoked with effect for payments made from and including 12 may 2006. Deductible payments made before 12 May 2006 should be entered here. Premium for continuation insurance (continued pension savings after termination of an employment relationship pursuant to the Act relating to Occupational Pensions/Defined-contribution Pensions) shall also be entered here. The amount must have been paid by 31 December 2006 at the latest. The maximum deduction, including any payment to a premium fund etc. is NOK 40,000. For married couples, the deduction is NOK 40,000 each. A deduction may be allowed even though you are entitled to a deduction for premium paid into a job-related pension scheme (item 3.2.12). An heir is not entitled to deduct payments made to an IPA where this is part of the heir’s reinvestment of lump sums paid by the deceased’s pension scheme. For information about such reinvestment, see item 2.2.2. 3.3.6 Losses on the sale of a house, holiday home, land and other real property. If you have sold a house/apartment, holiday home, plot of land or other real property at a loss, you may be entitled to deduct the loss. See the brochure "Salg mv. av fast eiendom” (Sale etc. of real property – in Norwegian only). You must describe how you have calculated the loss. Any loss on the sale of property abroad shall also be entered under item 3.3 6 if the loss is deductible in Norway. See “Real property abroad” . 3.3.7 Other deductions This item is used among other things for: Donations to certain voluntary organisations etc. You are entitled to deduct up to NOK 12,000 for cash donations to certain voluntary organisations etc. To qualify for a deduction, the donation(s) to each individual organisation must be at least NOK 500 during the income year. The organisation must have provided the Directorate of Taxes with information about the donation in machine-readable form within stipulated deadlines. If you have not received a copy of such notification from the organisation, you must ask the organisation to send the required information to the Directorate of Taxes. A list of approved organisations is available at skatteetaten.no/frivillige. Donations to research You are entitled to deduct donations to institutes supported by the state which are engaged in scientific research. Deductions in excess of NOK 10,000 are limited to 10 per cent of ordinary income before the deduction of any special allowance and before the deduction of the donation. A list of the approved institutions is available at skatteetaten.no/forskning. Index-linked bonds and bank savings with equity-indexed yield You are entitled to deduct establishment costs (subscription charges). The deduction is given once the savings scheme has been concluded. Any interruption charge resulting from the savings scheme being terminated before expiry of the commitment period is regarded as a loss, and it will not normally qualify for a deduction except when the saving is part of business activities or is a multiple debt instrument. If the savings arrangement is unrelated to business activities, any interruption charge may nevertheless be offset against any positive yield. Standard deduction for foreign employees Foreign employees who are liable to tax in Norway for wage earnings without being domiciled here, can claim a standard deduction. If they settle in Norway, they can claim the standard deduction for the first two income years they live here. The deduction is 10 per cent of gross wage earnings, maximum NOK 40,000. If you are claiming the standard deduction, many other deductions do not apply. For more information, see «International» at skatteetaten.no/utland. Special income deductions for young people Children who are 17 years old or more (born in 1989 or earlier) are entitled to a special income deduction if they have income from employment and a children’s pension. The deduction is given automatically. Loss on the sale of securities etc. Here, you enter any deductible losses on the sale of securities not entered under item 3.3.8. Unit-linked insurance Here you enter any losses on the savings part on disbursements from unit-linked insurance. This only applies to unit-linked insurance taken out with a Norwegian company or a company in another EEA state. Your local tax assessment office may ask you to document the loss. No deduction is given for losses on insurance taken out with a company outside the EEA area. 3.3.8 Deductible losses on the realisation (sale etc.) of shares etc. from form RF-1088 “Oppgave over aksjer og grunn-fondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only) Here, you enter any deductible loss on shares for which you have received form RF-1088 “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only). The same applies to deductible losses on primary capital certificates. All personal shareholders must check and return RF-1088. See “Shares etc.”. If the information in the statement is correct, you must transfer the amount specified in item 130 (in RF1088) to item 3.3.8 in your tax return. If the information in the statement is incorrect or incomplete, you must correct the statement. The corrected deductible loss must be entered in the tax return. RF-1088 is based on information reported by the companies concerned. If you have realised shares or primary capital certificates but not received RF-1088, “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only), for them, you must instead complete RF-1061 “Oppgave over realisasjon av aksjer mv.” (Statement concerning the realisation of shares etc.) and enter the loss under item 3.3.10. See further information about the new tax rules for share profits/losses (the shareholder model) in “Shares etc” or at skatteetaten.no. Item 3.3.9 Deductible losses on the realisation (sale etc.) of units in securities funds Here, you enter any deductible loss on the redemption, sale or other form of realisation of units in Norwegian and foreign securities funds (e.g. unit trusts, bond unit trusts, money market funds, combination funds etc.). Unit holders in Norwegian securities funds who have realised units during the course of the year will receive a realisation statement from the investment management company or the Norwegian Central Securities Depository. The same applies to certain units in foreign securities funds. The same information is sent to the tax authorities. The realisation statement contains information about any deductible loss in connection with the realisation. You must check that the amounts are correct and correct them if they are incorrect. If you have realised units in foreign securities funds for which you have not received a statement, you must complete and submit form RF-1061 “Oppgave over realisasjon av aksjer mv.” (Statement concerning the realisation of shares etc. – in Norwegian only). Any deductible losses should be transferred to item 3.3.9 in your tax return. 3.3.10 Deductible losses on the realisation (sale etc.) of shares etc. not included under items 3.3.8 or 3.3.9. Here, you enter other deductible losses on shares etc. than those entered under items 3.3.8 or 3.1.9, including: • shares in foreign companies • shares/ primary capital certificates in Norwegian companies for which you have not received RF-1088 “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates in 2006 – in Norwegian only) • bonds (to be deductible the bond must have been owned as part of a business activity or be a multiple debt instrument) On the realisation of shares in foreign companies or shares/ primary capital certificates in Norwegian companies for which you have not received RF-1088, you must complete and submit RF-1061 “Oppgave over realisasjon av aksjer mv.” (Statement concerning the realisation of shares etc. – in Norwegian only). For information about the calculation of such deductible losses, see the guidelines RF-1248 (in Norwegian only). There is no separate form for losses on the sale of bonds. The calculation should be entered on a separate sheet. See further information about the new tax rules for share profits/ losses (the shareholder model) in “Shares etc.” or at skatteetaten.no. 3.3.11 Previous years’ deficit Here, you enter any uncovered loss from previous years for which you are entitled to a deduction. The “Transcript of the Tax Assessment” which accompanied the Tax Assessment Notice for 2005 specifies how big a deduction you are entitled to. 3.3.12 Loss from the commercial operation of real property Here, you enter any loss from the operation of housing property and other real property that is subject to accounts-based assessment, see “Housing”. Please enclose RF-1189 «Årsoppgjør for utleie mv. av fast eiendom» (Annual accounts for the letting etc. of real property - in Norwegian only). 3.5 Special allowances Proposals for special allowances for age and disability are found in the Certificate of Pension Income and Tax Deducted from NAV (formerly the National Insurance Service). If you have questions about special allowances, please contact your local tax assessment office. 3.5.1 Special allowance for age The amount is specified under code 250 in the Certificate of Pension Income and Tax Deducted. Everyone who is 70 years old or more is entitled to a special allowance for age. The same applies to persons who have reached the age of 67 and who receive a pension from the National Insurance scheme. If you receive a reduced retirement pension, the special allowance will be reduced correspondingly. The full special allowance amounts to NOK 1,614 per month, or NOK 19,368 for the whole of 2006. If you are between the ages of 67 and 70 and have only lived in Norway for a short period, you are entitled to supplementary benefit. In such case, you will be entitled to a special allowance of NOK 1,614 per month with effect from the month in which you first receive the benefit. Married couples who are retirement pensioners are together entitled to maximum one whole special allowance for age. If one of them receives a retirement pension and the other disability pension, the special allowance because of age and disability shall not exceed NOK 19,368. If both spouses had a special allowance for disability or a minor impairment of earning capacity before either of them was entitled to a retirement pension, the monthly deduction shall nonetheless not be reduced if one or both of them receive a retirement pension. 3.5.2 Special allowances for disability You are entitled to a special allowance with effect from the first month you are entitled to a provisional disability pension, temporary disability benefit pursuant to the National Insurance Act or a disability pension. If your earning capacity is reduced by at least two-thirds, you will be entitled to a special allowance of NOK 1,614 per month (NOK 19,368 per year). If your earning capacity is reduced by less than two-thirds, the special allowance will be NOK 807 per month (NOK 9,684 per year). You will find the proposed special allowance under code 250 in the Certificate of Pension Income and Tax Deducted from NAV (formerly the National Insurance Service). 3.5.3 Special allowance for minor impairment of earning capacity This special allowance is given on the basis of an overall financial assessment in which any spouse’s income and wealth are also taken into consideration. You must submit a medical certificate if you have not already done so. The special allowance is NOK 9,180. Your local tax assessment office can provide further information. 3.5.4 Special allowance for unusually large sickness expenses You are entitled to a special allowance in the event of unusually large expenses because of sickness or other permanent debility, either concerning yourself or a person you provide for. The expenses must be documented/ substantiated and they must amount to at least NOK 9,180. The documentation/ substantiation requirement also applies to expenses resulting from diabetes. You are entitled to a deduction from the first krone for costs of supervision due to children’s illness. See “Special allowances for major sickness expenses” . 3.6 Basis for calculating municipal, county and state tax Twenty-eight per cent municipal, county and state tax is levied on the amount in item 3.6 after deduction of the personal allowance. for information about the personal allowance. The tax rate is 24.5 per cent for taxpayers in Nord-Troms and Finnmark. There, the income shall also be reduced by a special income deduction, . It is your wealth and debt at the turn of the year 2006/2007, i.e. at 00.00 hrs. on 1 January 2007 that must be declared. For children’s income and wealth, see “Parents and children”. Wealth and debt: 4.1 Bank deposits, cash, securities etc. Only applies to Norwegian bank deposits, securities etc. Deposits in foreign banks must be entered under item 4.1.9 and foreign securities etc. under item 4.6.2. 4.1.1 Bank deposits etc. Here, you enter all deposits in Norway (including interest) as of 1 January 2007: • in banks, also including deposits in salary accounts • in insurance companies • in organised savings associations, loans and savings in cooperative societies and savings in housing cooperatives, housing associations and limited liability housing companies 4.1.2 and 4.1.3 Cash etc. In addition to cash in Norwegian and foreign currency, you must enter the value of cheques, giro cheques and/or bank drafts that have not been cashed or credited to an account as of 1 January 2007 under item 4.1.2. For foreign currency etc., use the banks’ purchasing exchange rate. You should only enter the amount in excess of NOK 3,000 under item 4.1.3. Married couples and children who are assessed jointly have a joint tax-free allowance. This applies even if their income is assessed individually. Spouses can divide the tax-free allowance between themselves as they wish. If spouses are assessed separately, they are each entitled to a tax-free allowance of NOK 3,000. For information about separate assessment, see “Spouses, registered partners and cohabitants” . 4.1.4 Unit trusts (Norwegian), both registered and not registered in a securities register New rules apply from 2006, which mean that securities funds in which at least 50 per cent of the assets under management (as of 31 December 2006 and on average throughout the year, calculated at the end of each month) are placed in shares and/or primary capital certificates, shall be valued at 80 per cent of the unit value. If less than 50 per cent of the assets under management are placed in shares and/or primary capital certificates, 100 per cent of the value of the unit must be entered. Both units in Norwegian unit trusts that are registered and those not registered in a securities register must be entered under this item. Units in foreign unit trusts must be entered under item 4.6.2. 4.1.5 Bond unit trusts and money market funds (Norwegian), both registered and not registered in a securities register Units in bond unit trusts and in money market funds must be entered at 100 per cent of the value of the units as of 1 January 2007 (full value). The unit value will be specified on the balance statement from the fund/trust. If there is too little space, enclose a separate sheet or complete form RF-1006 «Spesifikasjon av postene 3.1.1 mv. i selvangivelsen» (Specification of items 3.1.1 etc. in the tax return – in Norwegian only). Units in bond unit trusts and money market funds must be entered under item 4.6.2. 4.1.6 Outstanding claims State the debtor’s name, address and the amount owed to you. Enter the interest under item 3.1.2. 4.1.7 Shares, primary capital certificates, bonds etc. registered in a securities register The tax value of shares etc. registered in a securities register (the Norwegian Central Securities Depository – VPS) should be specified in the annual statement from the register. Listed shares are valued at 80 per cent of their listed price on 1 January 2007. If the company is listed on both the Norwegian stock exchange and a foreign stock exchange, the value on the Norwegian exchange shall be used. Shares in unlisted Norwegian companies shall in principle be valued at 80 per cent of the shares’ proportionate share of the company’s total asset value for tax purposes as of 1 January 2006. If the share capital has changed as a result of payment from, or payment to, the shareholders, the value at 1 January 2007 shall be used. Contact the company for information about this value if necessary. If the company was formed in 2006, the shares shall be valued at 80 per cent of the sum of the face value of the shares and any share premium. Primary capital certificates are valued at 80 per cent of their listed price on 1 January 2007. Bearer bonds and other bonds registered in a securities register are valued at their listed price or assumed sales price if the price is not listed. 4.1.8 Securities not registered in a securities register Here, you enter the value on 1 January 2007 of shares, bonds, options etc. that are not registered in a Norwegian securities register. For shares and primary capital certificates listed in form RF 1088 “Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates 2006 – in Norwegian only) that has been sent to you, the tax value will normally be specified in the form. You must obtain the tax value of other shares from the company concerned. Shares etc. in foreign companies shall be entered under item 4.6.2 (other taxable assets abroad). Shares in unlisted Norwegian companies shall in principle be valued at 80 per cent of the shares’ proportionate share of the limited company’s total asset value for tax purposes as of 1 January 2006. If the share capital has changed as a result of payment from, or payment to, the shareholders, the value at 1 January 2007 shall be used. Contact the company for information about this value if necessary. If the company was formed in 2006, the shares shall be valued at 80 per cent of the sum of the face value of the shares and any share premium. For bonds not registered in a securities register, you enter the unit value as of 1 January 2007. If it is unknown, use the presumed sales value. State the name of the issuer, the number of bonds and the face value of the bond. For unlisted options, you enter the presumed sales value at 1 January 2007. An option confers a right, but not an obligation, on its holder to buy or sell an asset on a given date or within a certain period, at a price agreed in advance. If you have received unconditional options from your employer during 2006, information about the value of the options will be specified under code 523 in your Certificate of Pay and Tax Deducted. If there are conditions attached to an option, it is not regarded as a wealth asset for tax purposes. 4.1.9 Deposits in foreign banks Here, you enter deposits in foreign banks as of 1 January 2007. The banks’ purchasing exchange rate on 1 January 2007 for the currency in question will be used to convert amounts into Norwegian kroner. The deposits must be specified in form RF-1231 «Spesifikasjon av innskudd i utenlandsk bank mv. og BSU-sparing i annen EØS-stat» (Specification of deposits in foreign banks etc. and BSU savings in another EEA state – in Norwegian only). 4.2 Home contents/ movable property You must enter private home contents/moveable property under item 4.2, irrespective of whether it is in Norway or abroad. 4.2.1 and 4.2.2 Home contents and moveable property other than motor vehicles, caravans and pleasure boats It is the presumed sales value that must be declared. If the home contents/moveable property are insured, you can calculate their value on the basis of the amounts insured as shown below. For boats, this only applies to boats covered by an ordinary home contents and moveable property insurance policy. If the contents/moveable property are not insured or the amount insured is not specified, e.g. in the case of group home contents insurance, you can calculate the sales value on the basis of what you presume it would cost to replace the home contents/moveable property. Boats with a sales value as of 1 January 2007 of NOK 50,000 or more are deemed to be pleasure boats and must be entered under item 4.2.4. Boats with a sales value of less than NOK 50,000 should be entered under item 4.2.2 if the boat is not covered by an ordinary home contents/moveable property insurance policy. The presumed sales value should be stated. You can normally set the sales value at 75 per cent of the amount insured. A tax-free allowance of NOK 100,000 shall be deducted when calculating the wealth value of items 4.2.1 and 4.2.2. The tax-free allowance is a joint allowance for married couples and children who are assessed jointly even though their income is assessed separately. The tax-free allowance can be divided between spouses as they wish. Calculation of sales value The sales value of home contents and moveable property is calculated as follows: Amount insured/ acquisition price as new Sales value of the first NOK 1.000,000 10% of the next NOK 400,000 20% of the remaining amount 40% (Boats shall only be included in the calculation above if they are included as part of a home contents and moveable property insurance policy, not if they are insured separately.) Example Home contents and movable property: Amount insured NOK 1,100,000 Boat: Amount insured NOK 40,000 Home contents and moveable property (item 4.2.1) NOK 1,000,000 x 10% NOK 100,000 + NOK 100,000 x 20% NOK 20,000 = presumed sales value NOK 120,000 Boat (item 4.2.2) Presumed sales value: NOK 40,000 x 75% of the amount insured NOK 30,000 Total of items 4.2.1 and 4.2.2 NOK 150,000 – tax-free allowance NOK 100,000 = wealth value of the home contents, moveable property and leisure boat (item 4.2.3) NOK 50,000 If the sum total of items 4.2.1 and 4.2.2 is less than NOK 100,000, enter NOK 0 under item 4.2.3. 4.2.4 Leisure boats with a sales value of NOK 50,000 or higher Leisure boats with a presumed sales value of NOK 50,000 or higher are regarded as pleasure boats and shall be entered here. State the make, type and presumed sales value. If the boat is insured, then the value should be set at 75 per cent of the amount insured. 4.2.5 Motor vehicles Cars, motorbikes, snowmobiles and other motor vehicles (that are not used as part of a business activity) are valued on the basis of the vehicle’s list price as new from the main importer on the following scale: First registration year 2006 2005 List price value as new 75% 65% 2004 55% 2003 45% 2002 40% 2001 30% 2000 20% 1999–1991 15% 1990–1977 NOK 1,000 List prices are available at skatteetaten.no Veteran vehicles, i.e. vehicles that are 30 years old or more, are valued at their presumed sales value. Depreciable vehicles used for work or in a business shall not be entered here, but under item 4.4.1. 4.2.6 Caravans Caravans are valued in the same way as motor vehicles, see item 4.2.5. 4.3 Tax value of housing and other real property The tax value is declared as capital (wealth). The tax value of houses/apartments and holiday homes will be increased by 25 per cent from 2005 to 2006. The tax value shall nonetheless never exceed 30 per cent of the market value of the property. The tax value of houses/apartments in Norway shall be entered under item 4.3.2. The tax value of holiday homes in Norway shall be entered under item 4.3.3. If the property is situated abroad, the tax value shall be entered under item 4.6.1. For information about tax values, see “Housing” . 4.3.1 Unit owners’ share of the tax value of a housing cooperative The amount is specified in the statement from the housing cooperative or jointly-owned property. 4.3.2 and 4.3.3 Housing and holiday properties The tax value is declared as capital (wealth). For information about the tax value, see item 4.3 above. If you bought a house in 2006, you can contact your local tax assessment office in order to obtain the tax value. If you have built a new house/holiday property, carried out alterations, made significant changes during the year or redeemed leasehold land, you must provide information about this on a separate sheet. 4.3.4 Value of forest See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 4.3.5 Other real property Here, you enter the tax value of all other real property, included plots of land with no buildings on them. State the type of property. Agricultural property is liable to wealth tax together with buildings and rights pertaining to the property (including dwelling houses). For the 2006 income year, the wealth value of forest property is to be revised. Forest owners will be sent a form (RF-1016) with enclosed guidelines that provide detailed information about how to calculate the value of forest. The form must be submitted together with the tax return for 2006. 4.4 Operating equipment and other business assets 4.4.1 Vehicles, machinery, fixtures and fittings etc. Here, you enter work vehicles, fixtures and fittings etc. that are operating equipment in your occupation or business. The tax value after depreciation of the operating equipment is used, unless it can be proven that the actual value is lower. Vehicles, contents and other moveable property that are not operating equipment must be entered under items 4.2.1–4.2.6. 4.4.2 Livestock See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 4.4.3 Stock See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 4.4.4 Ships, fishing and whaling vessels etc. See "Tilleggsinformasjon for næringsdrivende" (Additional information for self-employed persons – in Norwegian only). 4.5 Other capital/wealth 4.5.1 Premium fund, individual pension agreement (IPA) The premium fund in connection with individual pension agreements (IPAs) should be entered here. You will find your balance (including interest) in the premium fund as of 1 January 2007 in the statement from the company. The whole amount must be entered. 4.5.2 The surrender value of life insurance policies Here, you enter the surrender value of individual annuity agreements subscribed for after 5 October 2006 and any previously existing annuity agreements which you have paid into after 5 October 2006. For exceptions, see “Life insurance” . The surrender value of endowment insurance agreements shall also be entered here. The surrender value of the above-mentioned individual annuity agreements and endowment insurance agreements is specified in the statement from the company. The whole amount must be entered. You enter any endowment insurance agreements with foreign companies under item 4.6.2. 4.5.3 Capital (wealth) in housing cooperatives, limited liability housing companies and jointlyowned properties Here, owners enter the value of their share of other capital in the housing cooperative than the tax value as specified in the statement from the cooperative. Here, owners of a share in a jointly-owned property shall also enter their share of other capital in the jointly-owned property other than the tax value. If you own a unit or are joint owner of a jointly-owned property with more than eight owner units, the amount will be specified in the statement you receive from the housing cooperative or jointly-owned property. Owners of shares in a jointly-owned property who have not received a statement, can obtain information about the amount from the board of the property or its accountant. 4.5.4 Other taxable capital (wealth) Here, you enter other taxable capital in Norway that is not to be entered under other items in your tax return. This year, the value of rights pertaining to forest property, such as hunting, fishing, letting rights etc. which were previously part of the capital value of the forest, shall be entered here. The values are arrived at by capitalising the net return on the rights using the capitalisation factor (forest factor) used in the valuation of forest values. 4.6 Taxable capital abroad 4.6.1 Capital in real property abroad Here you enter all capital in real property if the property is liable to tax in Norway. You must also state which country the property is located in. Real property that is not liable to tax in Norway shall not be entered here. However, information must be provided about such property, see item 1.5.6. The information will have a bearing on the division of debt and interest on debt between Norway and abroad. See “Real property abroad”. 4.6.2 Other taxable capital abroad Here, you enter all capital abroad which is liable to tax in Norway and which is not to be entered under other items. This applies, among other things, to bearer bonds, outstanding claims from foreign debtors, foreign shares, units in foreign securities funds and holdings in foreign companies. Here, you must also enter the value of endowment insurance with companies outside Norway. The tax authorities may request documentation. The banks’ exchange rate on 1 January 2007 for buying currency shall be used to convert amounts into Norwegian kroner. For more information, see « Informasjon til deg som har inntekt eller formue I utlandet” at skatteetaten.no 4.8 Debts All debts owing on 1 January 2007 shall be entered in your tax return. For information about deductions for debts for persons with real property abroad, see item 1.5.6. 4.8.1 Debts in Norway Here, you enter your debts in Norway, including debts to private persons. The amounts are specified in annual statements from banks, insurance companies etc. Any unpaid underpaid tax that had fallen due by 31 December 2006 should also be entered here. 4.8.2 Debts in housing cooperatives, limited liability housing companies and jointly-owned properties Here, you enter your share of the debts. If you own a unit or are joint owner of a jointly-owned property with more than eight owner units, the amount will be specified in the statement you receive from the housing cooperative or jointly-owned property. Owners of shares in a jointly-owned property who have not received a statement can obtain the required information from the board of the property or its accountant. 4.8.3 Debts abroad Here, you enter any debts owing to foreign creditors. Topics Shares etc. In 2006 new rules were introduced for tax on dividend and on profit/ loss on the realisation (sale etc.) of shares. These rules also apply to shares in foreign companies. According to the new rules, a deductible allowance will be fixed annually for persons holding shares on 31 December in the income year in question. This allowance will reduce the taxable income on dividend or profits from shares. Deductible allowance = allowance basis x deductible interest rate The deductible interest rate will be fixed in January 2007 and published, among other places, on the Tax Administration’s website (skatteetaten.no) Allowance basis = acquisition price of share The deductible allowance applies per share. It will be linked specifically to the share and cannot be used for any other shares, including other shares in the same company. Share dividend in excess of the stipulated deductible allowance is taxable. If the allowance is greater than the year’s dividend (or if no dividend is distributed), the unused allowance may be carried forward and deducted from dividend on the same share in subsequent years, or deducted from any profit on the subsequent realisation of the same share. Profit on the realisation of shares is taxable and losses are deductible. The rules for calculating profits and losses have been changed since 2006. The RISK (adjustment of the opening value on changes in taxed capital) rules have been revoked. The deductible allowance does not apply to shares realised in 2006. The previous rules for share dividend have also been revoked. Any unused allowance may be carried forward for up to ten years after the allowance has been earned. Fixing of acquisition value (opening value) Please note that the tax-related acquisition value (opening value) of all shares held by you at the end of 2006 will be fixed for the income year 2006. The stipulated acquisition value will be used to calculate the deductible allowance for subsequent years during which you hold the share, and for calculating the profit or loss on any future realisation of the share (with the exception of shares acquired prior to 1 January 1988 with alternative opening values). Most shareholders in Norwegian limited companies will have received form RF 1088 ”Oppgave over aksjer og grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates 2006 – in Norwegian only) in March or April from the Tax Administration’s register of shareholders. This statement contains information about the acquisition cost of shares. It is sent to all persons who in 2006 held shares or primary capital certificates in the Norwegian limited companies or savings banks that are included in the Tax Administration’s register of shareholders. It contains the information you require to complete your tax return. All personal shareholders must check and return the statement within the same deadline as the tax return. Shares held in foreign companies are not included in the Tax Administration’s register of shareholders. Nor, due to the failure of some companies to submit adequate statements to the register, are all shares in Norwegian companies included. In such cases, you yourself must provide the necessary information for fixing the acquisition value when you submit your tax return. You must complete form RF-1050 “Skjema for fastsettelse av anskaffelsesverdi (inngangsverdi) og beregning av skattepliktig utbytte for aksjer/andeler eid per 31.12.2006” (Form for the fixing of acquisition value (opening value) and calculation of taxable dividend on shares/ units held on 31 December 2006 – in Norwegian only), and submit it together with your tax return. Please note that completion and submission of this form is compulsory even if you did not receive any dividend in the income year 2006. If you received dividend in 2006 you must use this form to establish how much of the dividend is taxable and has to be declared as income in your tax return. If you have realised (sold) shares in 2006 and this has not be recorded in the Tax Administration’s register of shareholders, you will need to complete and submit RF-1061 “Oppgave over realisasjon av aksjer mv.” (Statement concerning the realisation of shares etc. – in Norwegian only). The rules for the taxation of income from shares will apply correspondingly to units in unit trusts and primary capital certificates. Most holders of units in Norwegian securities funds will have received the realisation or holding statement from the funds. They must check that the amounts are accurate, and correct any errors. Read more about the new tax rules (shareholder model) at skatteetaten.no. Travel to/from work Calculation of allowances for travel to/from work See item 3.2.8. Generally, the amount deductible for travel to/from work is based on the shortest distance between the home and permanent place of work on the basis of the distance by road or the use of scheduled public transport (excluding air travel). This applies irrespective of the actual means of transport used. If there is no driveable road or scheduled public transport, the distance will be based on the most expedient method of travel. If travelling by public transport is the shortest solution in terms of distance but means that the journey takes longer than it would by car, the following rules apply: If total travelling time to/from work is increased by two hours or more, the deduction will be based on the distance by road. In such case, you are entitled to deduct any road toll and ferry expenses in excess of NOK 3,300. Note, however, that if you deduct ferry expenses, the per-kilometre allowance (NOK1.40/0.70) must not include the distance covered by the ferry. You can read more about this in the brochure «Fradrag for arbeidsreiser – reiser mellom hjem og fast arbeidssted» (Deductible allowance for travel to/from work – travel between the home and permanent place of work – in Norwegian only). If your employer provides transport, and the benefit is tax-free, you must not include the distance travelled using this transport. You are entitled to a deduction for the number of journeys you have undertaken during the year. A full-time job normally involves 230 working days per year. Example The shortest distance between the home and permanent place of work Is 21 km (total of 42 km). The taxpayer works 5 days a week (normally reckoned to amount to 230 days a year). The allowance is calculated as follows: NOK 1.40 x 42 x 230 = NOK 13,524 The deductible allowance is the amount in excess of NOK 12,800. The deductible amount to be entered under item 3.2.8 is thus NOK 724. If you work part-time, the number of journeys will be reduced proportionately. For example, if you work four days a week instead of five, you calculate 230 working days x 4/5 = 184 working days. If you were absent from work for more than 15 days during the year because of holidays (in excess of the standard five weeks), illness, job-related travel, leave etc., you must reduce the number of travel days. Distinction between travel to/from work and job-related travel The distinction between travel to/from work and job-related travel has implications for the amount that is deductible for travel and for the tax authorities’ treatment of travel allowances received from employers. If the travel is deemed to be to/from work, a deduction can be claimed at the standard rate, see item 3.2.8. Coverage of travel to/from work by employers is regarded as taxable income (coverage of private expenses). If the travel is deemed to be job-related, you are in principle entitled to deduct the actual expenses. For information regarding the use of your car, see ”Cars” on page??. A deduction cannot be claimed in addition to the minimum standard deduction for expenses for job-related travel that does not involve spending a night away from home if the trip was part of your paid work. If you claim deductions under item 3.2.2 instead, the amounts to be deducted must be entered there. In the case of self-employed people, the amount will be deducted directly from their accounts. Payments by employers of deductible expenses do not constitute taxable income. What constitutes travel to/from work and what constitutes job-related travel? In principle travel to/from work includes: • travel between the home and the permanent place of work • travel between permanent places of work Job-related travel includes: • travel between the home and a non-permanent place of work • travel between a permanent and a non-permanent place of work • travel between non-permanent places of work • travel requiring stays away from home in connection with your work (does not apply to home visits by commuters) • travel to a place where you work for a maximum of 10 days during the income year • travel between the home and the permanent place of work to embark on a further journey classified as job-related travel (only applies if you stay at your place of work for a short time and do not perform ordinary work while there). The same applies to the return journey. • travel where your work requires you to regularly transport work equipment by car • travel from your current whereabouts to your permanent place of work, when summoned to perform necessary work outside working hours • travel between your place of work on an offshore installation, vessel or abroad and the meeting point for your transport • travel in excess of the distance between the home and the permanent place of work when travelling via a non permanent place of work to a permanent place of work • travel in excess of the distance between the permanent places of work when travelling between permanent places of work via a non-permanent place of work By “home” we mean the main residence, commuters’ accommodation or any other overnight accommodation used during periods of work entailing stays away from home. The distinction between permanent and non-permanent places of work If you have one or more different jobs (positions of employment) each involving one place of work, the places where you perform the work are your permanent place of work. If, on the other hand, one of the jobs involves several different places of work, the following rules will apply: Your permanent place of work is the place where you perform the majority of your work. If you do more or less the same amount of work at two different places, an overall assessment will determine which is your permanent place of work. The assessment must be carried out for specific two-month periods: January-February, March-April etc. Periods diverging from this pattern, e.g. February-March, are not allowed for assessment purposes. Example You have two places of work - Oslo and Bergen. In May-June, you worked most hours/ days in Oslo. In July-August, you worked mainly In Bergen. This means that your permanent place of work in May-June will be Oslo, while in July-August it will be Bergen. The term “job” will often mean a position of employment. The same employer may employ you in more than one position. If, for example, you are employed by the municipality in two different positions, this will constitute two jobs. The rules also apply to travel to and from the place of work for the purpose of income-earning activity, such as supervision of property that is let. If this is the only place of work in this activity, it will constitute a permanent place of work. A place where you have not worked more than ten days during the income year is not a permanent place of work. This means that premises for meetings, courses etc. that you attend are not reckoned as permanent places of work. Even if you work at one place for most of the time during a two-month period, and that place is therefore your permanent place of work, it is still possible for a different place of work within the same job to be regarded as permanent during the same period. This is the case if you work at the other place for a continuous period of more than two weeks. If you work at several places in one day, you are required to spend more than half your working hours that day at the same place before it can be regarded as a permanent place of work according to the two-week rule. An absence of one day to carry out work in another place in the same job will immediately interrupt the two-week period. Absence from work for up to three continuous working days due to illness, holidays etc. will not affect the application of the two-week rule. When the meeting point for the allocation or preparation of work tasks is the same for a continuous period of more than two weeks, it will be regarded as the permanent place of work. The meeting point for transport to a place of work on an offshore installation, vessel or abroad is regarded as the permanent place of work. If you have so many places of work that none of them can be designated the place where you normally perform your work, you will be deemed to have no permanent place of work. Cars/ vehicles Company cars The benefit from private use of an employer’s car is taxable as salary. If you have regular access to the company car, the rules below apply even if your actual use is sporadic. The benefit is stipulated to be 30 per cent of the car’s list price as new up to and including NOK 239,100 and 20 per cent of the list price in excess of this amount, see the example. By list price, we mean the list price used by the main importer on initial registration of the vehicle, including VAT and vehicle scrap deposit. Freight and registration costs are not included. Example Free car for the whole of the income year 2006 The list price of the car as new in 2006 is NOK 250,000. The taxable benefit is calculated as follows: On the first NOK 239,100 the benefit is NOK 239,100 x 30% = NOK 71,730 On the next NOK 10,900 the benefit is NOK 10,900 x 20% = NOK 2,180 The total taxable benefit is NOK 73,910. If the car is more than three years old on 1 January 2006, it will be valued, for benefit calculation purposes, at 75 per cent of list price. If the car is three years old or less and you can document that you have driven it for more than 40,000 kilometres in connection with your work during the income year, it will also be valued at 75 per cent of the list price. If the car is powered by electricity alone (el-vehicle), it will be valued at 75 per cent of the list price, irrespective of how many kilometres it has been driven in connection with job-related travel. Cars driven for more than 40,000 kilometres in connection with work in the income year, or cars powered by electricity alone will be valued at 56.25 per cent of the list price if they were more than three years old on 1 January 2006. If you have benefited from a company car for part of the income year, your taxable benefit will be based on the number of whole or part months during which the car was at your disposal. Circumstances relating to the car that prevent its use, e.g. time spent in car repair workshop, will not affect the amount of taxable benefit. Nor will individual obstacles to use of the car, such as holidays, sickness absence etc. be taken into account. The taxable benefit will not be reduced even if you cover the expenses for the car yourself, or pay your employer for its use. In special cases, where the list price is obviously disproportionate to the benefit of private use, the size of the benefit may be determined by discretionary assessment. Deduction of expenses in connection with the use of own/ leased car You are allowed to deduct expenses in connection with the use of a car for your job/ business. Whether you deduct the actual expenses or use a specified rate depends on whether or not the car is a work vehicle. The following are recognised as work vehicles: • Vehicles used only for work-related driving • Vehicles generally used for work-related driving for at least 6,000 kilometres in the income year (assessed over a 3-year period) • Vehicles that are used mainly for work-related driving, where such driving is necessitated by the job/business situation. If the car is recognised as a work vehicle, all actual expenses in connection with the car (including depreciation) may be deducted provided the car is not used privately. If the car is used privately, the expenses allowed will be reduced by an amount to be determined by the method used for wage earners who are taxed on the company car benefit, see “company cars” above. However, the amount of the reduction will never exceed 75 per cent of the calculated total expenditure of running the car (operating expenses + depreciation). Running expenses include fuel, repair costs, annual car tax and insurance. Direct membership of a vehicle recovery company is also included. Subscriptions to automobile organisations (e.g. KNA, NAF and MA) are not deductible running expenses. The same applies to road toll payments, ferry fares and parking expenses. The depreciation rate is 17 per cent per year (diminishing balance method) based on the car’s list price as new, see the example below. The depreciation for each year is deducted from the basis for calculating the subsequent years’ depreciation. If you buy or sell the car in 2006, your depreciation deduction will be reduced proportionately to the number of days (365 parts). The same applies if the status of your car changes from work vehicle to private car. Example Car first registered on 30 January 2006. List price as new NOK 250 000. Running expenses NOK 40,000 Calculated diminishing balance depreciation: Calculated total cost of running the car NOK 250,000 x 17% x (335/365)= NOK 39,100 NOK 79,100 NOK 59,325 The taxable benefit must not exceed NOK 79,100 x 75% = Without the 75% rule the taxable benefit would have been NOK 73,910, see ”Company car” page ??. If the car is not a work vehicle, you may claim a deduction based on the set rates for work-related driving. The deduction rate for work-related use is NOK 3 per km (NOK 3.05 in Tromsø). This rate applies regardless of the size of the vehicle and includes all the ordinary expenses involved in running a car. You can also deduct parking, road tolls, ferry expenses etc. provided they have been incurred in connection with work-related driving. Compulsory forms if claiming accounts-based taxation You must submit form RF-1125 ”Opplysninger om bruk av bil” (Information on car use – In Norwegian only). If you are claiming a deduction for depreciation, you will need to submit form RF-1084 ”Avskrivningsskjema for saldoavskrivninger og lineære avskrivninger” (Form for diminishing balance depreciation and straight line depreciation – in Norwegian only). Car allowance Car allowance is included in the Certificate of Pay and Tax Deducted, among other places in codes 153-A, 711 and 714. If the car is a work vehicle, it will in principle be subject to accounts-based tax assessment, whereby surplus/deficit is determined on the basis of actual expenses incurred in connection with workrelated driving. If the work vehicle is used exclusively for your job (paid work), you can choose between accounts-based tax assessment and taxation of any surplus pursuant to the Directorate of Taxes’ standard estimation rules (simplified surplus estimation). According to these rules, car allowances based on the Norwegian government rates and documentation requirements do not constitute a taxable surplus. If the allowance is greater than the stipulated rate, the difference will be regarded as taxable surplus. Any surplus should be entered under item 2.1.4. If the allowance is lower than the government rates the difference is regarded as a deficit. Unless you are claiming the minimum standard deduction, you enter the deficit under item 3.2.2. Official rates for 2006: 0–9,000 km – NOK 3.00 (3.05)* over 9,000 km – NOK 2.40 (2.45)* (*) This rate only applies to taxpayers working in Tromsø. According to the government rates the allowance is NOK 0.50 per km for passengers, NOK 0.50 per km for a trailer and NOK 0.70 per km for driving on forest and construction roads. Housing Income from housing and holiday homes etc. Income from housing and other real property in Norway and abroad should be entered under item 2.8. Personal benefit from use of your own home and holiday home is tax-free. The tax exemption applies to: • self-owned detached, semi-detached and multi-unit houses, terraced houses, apartments etc.. • units in housing cooperatives • houses on farms • holiday homes Rental income from these houses, apart from multi-unit housing may also be tax-free. Housing for which rental income is tax-free is referred to as tax-exempt housing. Holiday homes where any rental income is wholly or partially tax-free are also referred to as tax-exempt housing. The conditions for tax-free letting are described below. Tax-free rental income from own housing Detached houses (a family house with or without a self-contained bed-sit/small apartment) If you let the whole or a major part of your own house for less than 183 days in the year, the income is taxfree. If you have owned the house for only part of the year, rental income is tax-free provided you have let for less than half the time you have owned the house. Rental income is also tax-free if you let part of the house for a whole year and use at least half of the house yourself. The term “at least half of the house” means that the rental value of the part you use yourself is equal to or greater than that of the part you let. By “rental value” we mean the normal rental income for an apartment / section of a house on the free market for the purpose for which the let area is used. If your rental income is tax-free you are not entitled to any deduction for maintenance, insurance or other expenses relating to the house. You may, however deduct interest expenses. If you let for a longer period or let a greater part of the house than specified above, the rental income is taxable. In this case you are entitled to deduct expenses for maintenance, insurance etc. relating to the section of the house that is let. If the house was taxed on the imputed rental value/ assessed as taxexempt in any year in the period 2002-2005, the deduction allowed for maintenance may be reduced. See “Change in assessment method” below. Example Detached house owned all year: A) The owner lived in half of the house (reckoned in terms of rental value) throughout the year and let out the rest of the house. The rental income is tax-free. The owner is not entitled to deduct expenses for maintenance, insurance etc. relating to the house. B) The owner lived for seven months in one half of the house (reckoned in terms of rental value) and let the other half. During the remaining five months the owner let the whole house. The rental income is tax-free. The owner is not entitled to deduct expenses for maintenance, insurance etc. relating to the house. Semi-detached house (House with two family units) If the units are in separated sections, each section is regarded as a detached house. The above rules and examples concerning single-family houses also apply to the family unit you use yourself. If you meet the conditions for tax-free rental income for the unit you have used as your home, rental income from the family unit that you do not use will be tax-free. Multi-unit houses A multi-unit house is a house consisting of at least two family units plus a self-contained bed-sit/ small apartment with a separate entrance and WC. Rental income from multi-unit houses is taxable. The personal benefit from your own use of such houses is tax-free. You will find more information about taxation of the letting of housing in the brochure «Skatt ved utleie av bolig» (Taxation on the letting of housing – In Norwegian only). Taxable rental income If your rental income is taxable, the house will be subject to accounts-based tax assessment (direct assessment). Only deductions relating to the let part of the house will be allowed. If maintenance costs do not relate to a specific part of the house, deductions must be based on a proportionate division of expenses (based on rental value). Any profit must be entered under item 2.8.2 and loss under item 3.3.12. See “Accounts-based tax assessment” . Abroad Income from houses and other real property abroad must be entered under item 2.8.5. Ownership of a unit in a housing cooperative If you have let your apartment to the extent that your rental income is taxable, the apartment will be subject to accounts-based taxation. The rules for determining whether rental income is tax-free or taxable are the same as for other houses, see above. You enter your rental income and your share of the housing cooperative’s income in RF-1189 «Årsoppgjør for utleie mv. av fast eiendom» (Annual accounts for the letting etc. of real property – in Norwegian only). You must also enter maintenance costs etc. relating to the let part or to your share of the housing cooperative’s expenses, see “Accounts-based tax assessment” on page side ??. Any profit must be entered under item 2.8.2 on the tax return form and loss under item 3.3.12. Owners of a unit in jointly owned property If you have let your house/apartment and the rental income is taxable, your share of the income from the jointly owned property is not to be entered under item 2.8.1, but in the form RF-1189 «Årsoppgjør for utleie mv. av fast eiendom» (Declaration of letting etc. of real property during year – in Norwegian only). The rules for determining whether rental income is tax-free or taxable are the same as for other houses. You must also enter maintenance costs etc. relating to the let part, see “Accounts-based tax assessment” below. Profit must be entered under item 2.8.2 on the tax return form and loss under item 3.3.12. Land Net income from letting land (including cultivated land) that is not income from self-employment must be entered under item 2.8.2. You must complete the form RF-1189 «Årsoppgjør for utleie mv. av fast eiendom» (Annual accounts for the letting etc. of real property – in Norwegian only) and submit it together with your tax return. Income from letting a holiday home that you have used yourself If you own a holiday home (includes units in a housing cooperative) that you use yourself, you will not be taxed for its use (tax-exempt holiday home). If you also let the holiday home, rental income is tax-free up to NOK 10,000 . If the rental income is higher than this, 85 percent of the amount in excess of NOK 10,000 is reckoned as taxable income. No deductions are allowed for expenses for maintenance, insurance etc. of the home. Example Holiday home used by the owner, which is also let. Rental income: NOK 15,000 Taxable rental income: Gross rental income NOK 15,000 – tax-free amount NOK 10,000 Remainder NOK 5,000 Net rental income: NOK 5,000 x 85% = NOK 4,250 to be entered under item 2.8.3. If you do not use the holiday home yourself, but let it, then all rental income is taxable. You may then claim a deduction for expenses for maintenance, insurance etc, see “Accounts-based tax assessment” below. RF-1189 «Årsoppgjør for utleie mv. av fast eiendom» (Annual accounts for the letting etc. of real property – in Norwegian only) must be completed and submitted together with your tax return. Any profit must be entered under item 2.8.2 on the tax return form and loss under item 3.3.12. . Use by close family Use free of charge of other people’s houses and holiday homes is taxable. If the house/ holiday home is used by a close relative who covers all running expenses, such as maintenance, the user will not be taxed. The owner will be taxed on the capital. Real property in a municipality other than the municipality of domicile If the property is located in a municipality that is not under the same local tax assessment office as your municipality of domicile, see “Tilleggsinformasjon for lønnstakere og pensjonister” (Additional information for wage-earners and pensioners – in Norwegian only) or “Tilleggsinformasjon for næringsdrivende” (Additional information for self-employed – in Norwegian only). Taxable profit on realisation (sale etc). of housing, land or other real property A property is deemed to have been realised on cessation of ownership or transfer of ownership to another, for example through sale, exchange of property or complete destruction, e.g. by fire. Profit and losses on the sale etc. of houses Any profit you realise on the sale etc. of housing is tax-free provided that you had owned the house for more than a year when the sale was effected or agreed on, and you had used it as your home for at least one of the two years prior to the sale date. If you had the house built/ built it yourself, the ownership period is reckoned from the date on which you started to use the house or the date on which it was completed according to the completion certificate. Residence time (time in use) is reckoned from the date of moving in up to whichever occurs first of the moving-out date or the date on which a binding sales agreement was signed. Normally, only the period of use during your own ownership time will be valid. A loss on the sale of house is not deductible if a corresponding profit would have been tax-free. If the requirements for residence and ownership time are not met, all profits on the sale of house will be taxable and losses deductible. If you have used the house as your permanent home and, due to your work, health or for other reasons, have been prevented from using it, the time involved here also counts as residence time. This applies only if you did not know of or could not be expected to have known of the obstacle to use when you became owner of the housing. The same applies if the same factors prevent you from moving in. The rules on obstacles to use also apply if the house is let. Time during which you do not use the house but live in other housing that you also own does not count as residence time. However, if the other housing is a commuter house/apartment, this time will nevertheless count as residence time. In that case, you will be able to accrue residence time in both the commuter house/apartment and the permanent home at the same time. Spouses will be credited with each other’s residence time in their joint home. On the sale etc. of a former joint home on separation or divorce, the spouse who has moved out of the home will be credited with his or her spouse’s residence time. This applies even if the spouse who moved out is the sole or part owner and even if the house is sold at a loss. The same applies to the breakdown of a relationship between former cohabitants who have or have had joint children, if the breakdown occurred in 2004 or later. Any loss must be entered under item 3.3.6. If a property that can, in principle, be sold at a tax-free profit has more land than is normal for the property, part of the profit may be taxed as profit on the sale of the land. If there is a loss on the sale of such property, part of the loss is deductible as loss on the sale of the land. Even if you think that the profit is tax-free you must still declare it on a separate sheet. You will find more details about the rules and the calculation of taxable profit/ deductible loss in the brochure «Salg mv. av fast eiendom» (Sale etc. of real property – in Norwegian only). Profits and losses on the sale etc. of holiday homes Any profit on the sale etc. of a holiday home (also applies to units in a housing cooperative in which the unit is used for holiday purposes) is tax-free if the owner has used the holiday home personally for at least five of the last eight years and owned it for more than five years. Ownership time is reckoned from the date the holiday home was purchased to the date a sale has been effected or agreed on. If you have had a holiday home built/ built it yourself, ownership time is reckoned either from the date on which it was taken into use or the date it was completed according to the completion certificate. Only the period of use during your own ownership time will count. Losses are not deductible if a corresponding profit would have been tax-free. You will find more details about the rules for calculating taxable profits/ deductible losses in the brochure «Salg mv. av fast eiendom» (Sale etc. of real property- in Norwegian only). Sale etc. of land Profits/ losses on the sale etc. of land are taxable/ deductible regardless of how long you have owned them. Sale of farm property/ forest property As a general rule, any profit/loss on the sale of farm property/ forest property is taxable/ deductible. It is, however, partly tax-free if the following four conditions are met: • the farm is an «ordinary farm» • the seller has owned the farm for at least 6 years (fully tax-free after at least 10 years) • the buyer must be fully entitled to succeed the seller pursuant to the Inheritance Act chapter 1 or 2 • the purchase price does not exceed 75 per cent of the estimated sales value More information is available at your local tax assessment office. Profits and losses on the sale etc. of real property abroad Any taxable profit on the sale etc. of real property abroad must be entered under item 3.1.11. A deductible loss should be entered under item 3.3.6. Capital Houses and holiday homes If the house is in Norway, the tax value must be entered under item 4.3.2. If the holiday home is in Norway the tax value must be entered under item 4.3.3. If the properties are abroad, the tax value must be entered under item 4.6.1. The tax value of housing and holiday homes has been increased by 25 per cent since the income year of 2005. If the tax value of the properties is substantially above the valuation level of comparable properties in the municipality, the 25 per cent addition may be reduced or removed. If the value of your house or holiday home has risen since 1 January 2006 due to upgrading etc. the tax value may be increased by more than 25 per cent. The same applies to any upgrading etc. made at an earlier date that has not been taken into account due to failure to provide information or the provision of incomplete information to the tax authorities. On initial valuation of newly built properties, the tax value must not exceed 30 per cent of the cost price of the property, including land, or 30 per cent of the fair market value of the property. You must declare any extensions to or other upgrading of your house. The local tax assessment office may then stipulate a new tax value. The sale of a property will not in itself lead to an increase in the tax value. Already established tax values that exceed 30 per cent of fair market value will be reduced at the request of the taxpayer provided that fair market value can be documented. In such cases the tax value will be reduced to a maximum of 30 per cent of the documented fair market value. “Fair market value” means the price obtainable on the sale of the property in question or a fully equivalent property. The sales price is, however not automatically applicable if the property has been sold to a close family member of the seller or his/her spouse or partner, or if the seller and buyer have any other community of interest. In these cases, you must substantiate that the property was not sold at an underprice, for example by submitting a valuation. If you request a reduction in the tax value on the basis of an appraised market value you must submit a valuation by a qualified appraiser or the value estimate of an estate agent who is familiar with the district. You will be required to pay the appraiser’s fee, and the expense is not tax-deductible. It must be clear from the valuation/ value estimate that the property has been inspected both inside and outside. The tax authorities may decide not to take account of any valuation/ value estimate if it has been made by an insufficiently qualified person, if the appraisal work has not been thorough enough or if the valuation is obviously incorrect. The valuation must have been made, or the sale effected, subsequent to publication of the 2005 tax assessment. Requests for a reduction in tax value must be submitted to the tax assessment office before the appeal deadline for the 2006 tax assessment. If you can prove that the conditions for a reduction of the tax value have already been met, you can claim the reduction when you submit your tax return. Accounts-based tax assessment You are not allowed to deduct running expenses, for example insurance expenses, ground rent, property tax, local government taxes and maintenance if the housing/ holiday home qualifies for tax-exempt assessment. Properties that do not qualify for tax-exemption will be liable to accounts-based tax assessment (direct assessment). If accounts-based tax assessment applies (the rental income is taxable) only maintenance costs etc. relating to the let part of the house are deductible. Expenses relating to the part of the house used by the owner are not deductible since the benefit from the use of one’s own house is tax-free. If maintenance costs do not relate to a specific part of the house, the deduction must be based on a proportionate division of expenses based on rental value. This will typically be the case for exterior maintenance, for example painting the whole house. The same applies to running expenses that apply to the whole property, for example local government taxes, property tax etc. If your property is to be assessed on the basis of your accounts, you must complete and submit form RF1189 ”Årsoppgjør for utleie mv. av fast eiendom” (Annual accounts for the letting etc. of real property – in Norwegian only). If the property is located in a different municipality than the one to which you submit your tax return, Form RF-1189 must be submitted to the municipality in which the property is located. Maintenance costs are defined as costs and expenses in connection with work carried out to restore the property to its former condition. Any work that improves the standard of a property is regarded as upgrading. Structural alterations are also deemed to be upgrading even if the work does not lead to any improvement of standard or increase in value. Upgrading work is not directly deductible, but will be added to the cost price of the property, thereby reducing any taxable profit or increasing any deductible loss if the property is subsequently sold. When deciding whether the work constitutes maintenance or upgrading, account must be taken of developments in materials, building methods etc. since the property was new. The replacement of old parts with new parts in order to maintain a standard corresponding in today’s terms to the former standard of the building (low, medium or high standard) counts as maintenance. If you perform upgrading work instead of maintenance you can deduct the part of the expenditure that relates to what would have been necessary maintenance. For example, the replacement of a woodburning stove by a paraffin stove with tank would normally be regarded as upgrading. However, if it would have been necessary to replace or repair the wood-burning stove, you will be allowed a deduction for maintenance. The deduction is limited to what such maintenance would have cost. The same applies if you use better or more expensive materials than those used originally, for example if you replace ordinary tiles with glazed tiles. Work consisting exclusively of alterations is not maintenance. For example pulling down or moving a wall to make a room bigger, or moving a bathroom, is not maintenance. The same applies to work to undo a previous change, for example moving a wall back to its original position. Switching from tax on imputed rental value and/or tax-exempt assessment to accounts-based tax assessment When the method of assessment changes there are special rules that limit maintenance costs. Deductions for other running expenses, for example local government taxes, are allowed in full from the beginning the year in which accounts-based tax assessment starts to apply. If the same owner has been taxed on imputed rental value and or given tax-exempt assessment for the property in any of the five preceding income years, maintenance costs in excess of NOK 10,000 that relate to the let part will be reduced by 10 per cent for every year during the last five income years that the owner was taxed on imputed rental income/ qualified for tax-exempt assessment. The maintenance deduction is calculated as follows: The number of years with tax on imputed rental value and or tax-exempt assessment during the last five income years: The following deductions are allowed for maintenance relating to the let part: 0 year 1 year 2 years 3 years 4 years 5 years Full deduction NOK 10,000 + 90% of the amount in excess of NOK 10,000 NOK 10,000 + 80% of the amount in excess of NOK 10,000 NOK 10,000 + 70% of the amount in excess of NOK 10,000 NOK 10,000 + 60% of the amount in excess of NOK 10,000 NOK 10,000 + 50% of the amount in excess of NOK 10,000 Spouses, registered partners and cohabitants For tax purposes, spouses are defined as persons who have entered into marriage, persons formally registered as partners and cohabitants deemed for tax purposes to be equivalent to spouses. Spouses Spouses are two persons who are married to each other pursuant to the Norwegian Marriage Act. Spouse status also applies in the case of marriages entered into abroad and recognised in Norway. Registered partners Registered partners are two persons who have registered a partnership pursuant to the Norwegian Act relating to Registered Partnership. Cohabitants deemed to be spouse-equivalents Cohabitants are two persons of the same or different sex who live together and are neither married nor registered partners. The following cohabitants (who have a duty to report to the Norwegian Labour and Welfare Organisation) will be regarded as equivalent to and assessed as spouses: • former spouses/ registered partners who have become cohabitants, where at least one of them is entitled to a national insurance pension or early retirement pension with public subsidy (AFP) • cohabitants who have or have had joint children, where at least one of the cohabitants is entitled to a national insurance pension or early retirement pension with public subsidy (AFP) For tax purposes these are defined as “spouse-equivalents”. However, the cohabitants will not be treated as spouse-equivalents if both of them were granted national insurance pensions as single persons prior to 1 January 1994 and cohabitation was established before that date. Unless otherwise specified, all references in these guidelines to tax rules for spouses also apply to “spouse-equivalent” cohabitants. Obligation to submit tax returns Unless exempted from so doing, each spouse must submit his or her own tax return. A surviving spouse retaining undivided possession of the estate is required to submit a separate tax return for the deceased spouse’s income for the year of death. Joint assessment Married before 1 November 2005 The wealth of spouses who married on or before 31 October 2005 will be assessed jointly in tax class 2. Their income will be assessed either jointly in tax class 2 or separately in tax class 1. The tax assessment office will choose whichever method gives the lowest total tax - either separate assessment or joint assessment with division of tax. Spouses may, however, demand separate assessment of their income. For spouses who actually live apart on a permanent basis, see “Separate assessment” below. Joint assessment with division of tax Joint assessment involves the computation, in tax class 2, of the spouses’ respective shares of the wealth tax on their total wealth, income tax on their total general income and surtax on their total personal income. The tax is the divided proportionately between the spouses on an individual basis. National insurance contributions are also computed for each spouse individually. No surtax will be charged before the total joint personal income exceeds NOK 394,000. An amount of NOK 70,800 (personal allowance in tax class 2) will be deducted from the total net income of the spouses (item 3.6) in the assessment of municipal tax and tax to the state). Separate assessment of income: In this case, tax on general income, surtax and the national insurance contribution are computed in tax class 1, with each spouse being assessed separately on his or her own tax basis. A deduction of NOK 35,400 will be made from the net income of each spouse (personal allowance in tax class 1). No surtax will be charged until the personal income of the individual spouse exceeds NOK 394,000 . Wealth is always assessed jointly. Wealth tax computed in tax class 2 on the basis of the spouses’ total net wealth. Spouses can choose how they wish to divide the wealth between themselves. If they fail to agree, the spouse who owns the wealth in private law will be taxed. The total tax on wealth is not affected by the way wealth is divided between the spouses. Spouses may choose freely how they wish to divide interest on debt and other deductions that are not linked to a specific source of income. The same applies to capital income. Examples of capital income are: interest income, income from real property, share dividend and profit on the sale of real property. If separate assessment of income is selected as the most favourable method, please note that if the net income of one spouse is less than NOK 35,400, he or she will not be able to make full use of the personal allowance. Unused personal allowance may not be transferred to the other spouse nor deducted in subsequent years. In other words it is in the interest of the spouses to divide the capital income and interest on debts etc. between them in a way that ensures that neither income falls below NOK 35,400 (NOK 50,400 in Finnmark and Nord-Troms). The tax saved by doing this may be as much as NOK 28 for every NOK 100 by which the lower income is increased up to the level of NOK 35,400 . Note, however, that a transfer as described above will not reduce the tax of spouses whose total personal income is NOK 394,000 or less. Persons living in Finnmark and Nord-Troms are entitled to a special allowance on their general income of NOK 15,000 (does not apply to persons under 17). The amount does not have to be entered in the tax return. As with the personal allowance, you are not entitled to transfer any unused special allowance to your spouse or deduct it in subsequent years in the case of separate assessment. Domiciled (in tax terms) only part of the year in Norway The amounts mentioned above do not apply to taxpayers who are only domiciled (in tax terms) in Norway for part of the year. Independent assessment Married after 3 October 2005 Spouses who married after 31 October 2005 will normally be assessed independently. However, if the spouses set up home together before the end of the income year, the spouse with the lowest income (item 3.6) can ask to be assessed jointly with the other spouse. You can claim joint assessment when submitting your tax return. If the person claiming joint assessment is required to submit the «Selvangivelse for næringsdrivende mv.» (Tax return for self-employed persons etc.), two identical tax returns must be submitted, one for the current municipality of domicile and one for the municipality in which the spouse was domiciled until 1 November 2005. The requirement for two tax returns does not apply to persons submitting the «Selvangivelse for lønnstakere and pensjonister mv.» (Tax return for wage-earners and pensioners etc – in Norwegian only). If the municipalities are under the same local tax assessment office, one tax return will be sufficient. Independent assessment means that spouses will be assessed entirely on their own wealth and income, and the personal allowance will be based on the individual spouse’s circumstances. As a rule each spouse will be entitled to a tax-class 1 personal allowance. Spouses who were taxed as single providers prior to marriage will also be taxed as single providers in 2006 provided the other conditions are satisfied, see «Parents and children» on page??. Spouses who live apart Spouses who actually live apart, for example because one of the spouses is in an institution, will always be assessed independently. This also applies if the spouses live in different municipalities and do not have a common home, for example because of work. Separated/ divorced Spouses who separated/ divorced or moved apart before the end of 2006, will be assessed independently. Tax on income from business, salary, pension and similar is levied on the spouse who earned the income. Allowances relating to specific incomes are deductible by the spouse paying tax on the income. This will apply, for example, to the minimum standard deduction, union dues and expenses for travel between the home and a permanent place of work. Other expenses not relating to specific sources of income will, in principle, be allocated to the person responsible for incurring them. A person entitled to benefit from an individual pension agreement (IPA) will thus be entitled to deduct premium paid before 12 May 2006. Interest on debts accrued during the year prior to the separation/ divorce will be deductible from the income of the spouse who paid the interest, provided both parties agree. If no such agreement has been reached, the interest on debt that has accrued since the break-up of the relationship will be deductible by the person liable for the debt. If both spouses are liable for the debt, the interest will be divided equally provided that there is nothing to indicate a different liability. This also applies to interest that accrued prior to the break-up in the year of the separation. The chosen division of joint wealth/yield on investments and debt/interest in the tax return for the separation year is not legally binding for the final settlement between the spouses. If the final division of the estate has not been completed and the spouses are in disagreement about the division of their joint wealth/yield and debt/interest, the following rules will apply to tax assessment: Wealth tax on separate assets is payable by the owner of the assets, even if the other spouse has right of use to an asset, for example the house. In the case of jointly owned assets, each spouse is liable for half of the wealth tax. Tax on yield is payable by the spouse who owns the taxable asset. Debt is deductible on a fifty-fifty basis unless a different division can be shown to be correct. Interest on debt is divided in the same ratio as the debt. The spouse who had one or more of the spouses’ children living with him or her (registered as living there in the population register) at the end of 2006 will be regarded as a single provider on condition that the other relevant criteria are met. See «Parents and children» . If one of the spouses has provided for the other after the break-up for most of the separation year, this spouse may demand to be assessed in tax class 2 instead of claiming a deduction for maintenance payments. Such demands for assessment in tax class 2 must be submitted with the tax return. Cohabitants Cohabitants are persons who live together without being married, and they are not normally assessed as spouses. For exceptions, see ”Spouse-equivalents” above. Cohabitants are assessed independently with respect to both wealth and income. The actual owner of assets will be taxed on wealth and yield on capital. The cohabitant who is the actual owner of a share in a housing cooperative will always be liable for any tax on the share of income/expenses in a housing cooperative, even if both cohabitants live in the apartment. Individual cohabitants may only claim deduction of debt/interest on debt for which they are personally liable. Note that a cohabitant is not allowed to deduct interest he or she has paid for the other cohabitant even if the cohabitants have an agreement between themselves about who is to pay interest and instalments. Cohabitants with jointly owned assets and liabilities (not spouse-equivalent cohabitants) The following applies to cohabitants who are not to be taxed as spouses: In the case of jointly owned assets, for example the house, each cohabitant declares the part owned by him or her. If exact ownership has not been established by agreement, the wealth value will be divided equally between the cohabitants. Joint debt for which both are liable to the lender for the same period will be allocated equally. Any internal, actual agreement on a different division of debt must be signed by both parties and sent to the local tax assessment office. Such agreements must be signed when the debt is incurred. Changes to an agreement will not be deemed valid without genuine grounds (such as enduring changes in the income situation). The Interest on the debt is divided in the same ratio as the debt. If both cohabitants are owners in a housing cooperative, the share of the income/expenses will be divided according to their share of ownership. If this is not established by agreement, the share of income/expenses will be divided equally between the cohabitants. If one (or both) of the cohabitants does not make full use of the deduction, leading to a loss, the loss can be carried forward and deducted from a subsequent year’s positive income. Losses from previous years should be entered in item 3.3.11. One cohabitant’s loss is not transferable to the other cohabitant. Real property abroad Capital in, income from and profit on the sale of real property is in principle taxable in Norway. This also applies to shares in holiday property (timeshares) abroad and shares in foreign timeshare companies that are regarded as real property. If capital in, income from and profit on the sale of real property is not taxable in Norway, you must nonetheless provide information about the income etc. in your tax return or in a separate attachment/enclosure. Income from property abroad Income from real property abroad is in principle taxable in Norway. If the real property is located in one of the countries with which Norway has a tax agreement and which uses the split model to avoid double taxation, the income from the real property is not taxable in Norway. You will find a list of these countries below. In cases where income from real property abroad is taxable in Norway, such income must be stipulated according to the Norwegian rules. The use of a house/holiday home abroad is tax-free provided that it would also have been tax-free had the property been located in Norway. See "Dwellings” on page??. Taxable rental income from real property abroad must be entered under item 2.8.5. You must complete and submit form RF-1189 ”Årsoppgjør for utleie mv. av fast eiendom” (Annual accounts for the letting etc. of real property – in Norwegian only). If you claim a deduction in your Norwegian tax for tax paid abroad on income from the real property, you must document the payment. You must also submit form RF 1147 “Fradrag i norsk skatt for skatt betalt i utlandet (kreditfradrag) for lønnsmottakere, pensjonister and personlig næringsdrivende” (Deduction in Norwegian tax for tax paid abroad (credit deduction) for employees, pensioners and self-employed persons – in Norwegian only), see RF 1148 “Rettledning” (Guidelines – in Norwegian only). Deductions from Norwegian tax may only be claimed for foreign tax classified as wealth tax or income tax. You may not deduct foreign property tax from your Norwegian tax. If your income from the real property abroad is taxable in Norway, you are entitled to claim a deduction in income for the property tax paid abroad. If the use of the real property abroad is tax-free in Norway, you are not entitled to deduct the foreign property tax or any other tax paid abroad. For more about this, see "Dwellings” side ??. Profit/ losses on the sale of real property abroad Profits on the sale or other realisation of real property abroad are in principle taxable in Norway. Losses on the sale of real property abroad are in principle deductible. See ”Dwellings” on page??. If the real property is located in one of the countries with which Norway has a tax agreement and which uses the split model to avoid double taxation, the income from the real property is not taxable in Norway. Nor is any loss deductible. You will find a list of these countries below. Taxable profits on the sale or other realisation of real property abroad must be entered under item 3.1.11. If you claim a deduction from your Norwegian tax for tax you have paid abroad on the profit, you must document payment. You must also submit form RF 1147 “Fradrag i norsk skatt for skatt betalt i utlandet (kreditfradrag) for lønnsmottakere, pensjonister and personlig næringsdrivende” (Deduction in Norwegian tax for tax paid abroad (credit deduction) for employees, pensioners and self-employed persons), RF1184 Rettledning (Guidelines – in Norwegian only) Losses on the sale or other realisation of real property abroad that are deductible in Norway must be entered under item 3.3.6. You must provide information about the property and state how you calculated the loss. The tax assessment office may demand documentation. Capital in real property abroad Capital in the form of real property is in principle liable to wealth tax in Norway. If the real property is located in one of the countries with which Norway has a tax agreement and which uses the split model to avoid double taxation, the capital in the real property is not taxable in Norway. You will find a list of these countries below. Capital in real property abroad that is taxable in Norway must be entered under item 4.6.1. You must also specify in which country the property is located. If no Norwegian tax value has yet been fixed, the tax assessment office will complete this item. To do this, the tax assessment office will require information on the type of property (holiday home, plot of land etc.), when it was purchased (date), the purchase price and, if available, the sale price. If you submit ”Selvangivelse for lønnstakere and pensjonister mv.” (Tax return for wage-earners and pensioners) and have provided information about the property in your tax return for 2005, the tax value should be pre-completed in your tax return. The tax value of real property will be stipulated in accordance with Norwegian rules. In principle it will be based on the sales value in the place in which it is located. The tax-value/sales-value ratio used must be more or less the same as the one that applies in the taxpayer’s municipality of domicile in Norway. It must not be based on the property value fixed by foreign tax authorities. Capital in real property that is not taxable in Norway is not to be entered under item 4.6.1, but you will be required to provide information about the property. The information you provide affects the distribution of debt and interest on debt between Norway and the other country involved. Deductions for debt and interest on debt If you have a loan abroad you must document the amount of interest you have paid on the loan. Interest paid on debt to foreign creditors is only deductible if the interest expense is documented. Your local tax assessment office can give you more information about the documentation required. You will not be entitled to deduct the full amount of interest on debt if the income from the real property abroad is exempt from taxation in Norway pursuant to a tax agreement. Nor will you be entitled to full deduction of the debt if the capital in the real property is exempt from taxation in Norway. The countries to which this applies are listed below. Total debt and interest on debt in Norway and abroad will be divided according to a distribution key based on the ratio between the value of the real property that is not taxed in Norway and the value of the taxpayer’s total assets that are taxed in Norway. Debt and interest on debt thereby assigned to real property abroad are not deductible in Norway. The same distribution key will be used for debt and interest on debt. In the case of spouses, the debt and interest on debt of both parties will be included in the division, which will be based on values at 31 December in the income year. This mean that the deduction for debt and/or interest on debt will only be limited if the taxpayer owns real property abroad at the end of the year. Debt and/or interest on debt must be divided as above even though the real property is not subject to taxation abroad. The value of the real property abroad and the rest of the taxpayer’s total taxable assets will be set at the Norwegian tax value (capital value for tax purposes). The tax-value/sales-value ratio used must be more or less the same as the one that applies in the taxpayer’s municipality of domicile in Norway. It must not be based on the property value fixed by foreign tax authorities. The local tax assessment office will fix the value of the real property abroad and divide the debt and the interest on the debt on the basis of the information given in the tax return. The rules on debt and interest on debt also apply where shares in holiday property (timeshares) abroad and foreign timeshare companies are classified as real property that is not taxable in Norway. Barbados Belgium Benin Brazil Bulgaria Philippines Indonesia Israel Italy Kenya China Croatia Malta Morocco Dutch Antilles Portugal Serbia and Montenegro Slovenia Sri Lanka Tunisia Turkey Germany USA Zimbabwe Egypt Ivory Coast Jamaica Malaysia Pakistan South Korea Trinidad and Tobago Zambia Mexico Parents and children Who are considered as parents? Apart from biological parents, adoptive parents are also regarded as parents. The same applies to foster parents and persons caring for a child but not receiving foster-home payment, provided that the relationship has the character of an adoption. If parental responsibility has been established by law and a specific person has actual care and control of the child, the relationship is deemed to have the character of an adoption. Foster parents who receive foster-home payments shall not enter the foster child’s wealth and income in their tax return. Assessment of children Children 12 years or younger (born 1994 or later) In the case of parents who live together, the wealth and income of children under 12 will normally be divided equally between the two parents for tax assessment purposes. This applies both to spouses and cohabitants even if the cohabitants are not classified as spouse-equivalents. The parents are entitled to demand a different division. If the parents are not living together at the end of the year, the parent whom the child is registered in the population register as residing with at the end of the income year will in principle be liable to tax on the child’s wealth and income. If this parent has not had care and control of the child for most of the year, he or she may demand that this tax liability be transferred to the parent who cared for the child for most of the year. If the parent who is taxable on the child’s wealth and income is living with another person who has not adopted the child, the person who is the child’s father or mother will normally be liable to tax on the child’s wealth/income. If this parent is married, each of the spouses will be liable for half of the tax on the child’s wealth and income. The spouse who is not the biological mother or father of the child in question, provided he or she has not adopted the child, may demand transfer of all tax liability for the child’s wealth and income to the other spouse. Children with no living parents will be taxed as independent taxpayers. In practice, children who, due to parental responsibility or care and control having been taken away from both parents, do not live with their parents may also be taxed independently. Children and adolescents aged 13 to 16 (born between 1990 and 1993) Children and adolescents who reach the age of 13 before the end of the year and who have earned income from their own work must submit tax returns for their income from employment. The parents will be taxed on other income and wealth as with younger children, see above. The income and wealth of children of cohabitants is normally entered in the mother’s tax return. Young people aged 17 and over (born 1989 or earlier)) Young people aged 17 or over at the end of the income year must submit their own tax return for the whole of their wealth and income. Child-care deduction Single provider You are entitled to deduct the following maximum amounts for documented expenses for the minding and care of a child: • NOK 25,000 for one child and • NOK 5,000 for each additional child General rule for spouses Spouses living together may claim a total child-care deduction of up to: • NOK 25,000 for one child and • NOK 5,000 for each additional child This applies both to joint children and/or children of one of the spouses, regardless of the assessment method. Exceptions: If the marriage was entered into during the income year and both spouses have children from previous relationships, the spouses are each entitled to claim the maximum deduction prior to the marriage. After the marriage they are in principle entitled to only one joint maximum deduction. This means that, in principle, the maximum deductions to which the spouses are entitled will be different before and after the marriage. However, in such cases they are allowed to select the most favourable solution for the whole income year, which means that they can in fact keep the maximum deduction to which they were entitled prior to the marriage for the rest of the year. If the spouses select a joint maximum deduction, the amount will be divided equally between them, unless they have agreed otherwise. Example The parents marry in 2006. They have three children; one joint child and one child each from a previous relationship. The expenses for minding and care of the children will be divided as follows: Joint child: NOK 0 Child from previous relationship: NOK 37,000 Child from previous relationship: NOK 3,000 Total joint expenses for minding and caring for children are NOK 40,000. According to the main rule, they are jointly entitled to a maximum deduction of NOK 35,000 (three children; NOK 25,000 + NOK 5,000 + NOK 5,000). Prior to their marriage each parent was entitled to separate deductions within his or her own maximum allowances, i.e. up to NOK 25,000 each (both parents have a child from a previous relationship). In this case, they will be entitled to a total maximum deduction of NOK 28,000 (NOK 3,000 + NOK 25,000). In this case the most favourable solution will be to follow the main rule, which will allow a deduction of NOK 35,000 for 2006. Main rule for cohabitants Cohabitants (both spouse-equivalent and non-spouse equivalent cohabitants) who have joint children are entitled to a joint deduction of up to: NOK 25,000 for one child and NOK 5,000 for each additional child. This applies even if one or both of them have children from a previous relationship. If the spouses only have children from previous relationships, the maximum amount will apply separately to each of them. Exceptions: If a joint child is born to the cohabitants during the income year, and each cohabitant was entitled to a deduction within his or her maximum allowance prior to the birth of their joint child, they may keep this for the remainder of the income year. Example The parents have a joint child in 2006. They have three children: one joint child and one child each from a previous relationship. The expenses for minding and care of the children will be divided as follows: Joint child: NOK 0 Child from previous relationship: NOK 25,000 Child from previous relationship: NOK 15,000 Total joint expenses for minding and caring for children are NOK 40,000. According to the main rule, they are jointly entitled to a maximum deduction of NOK 35,000 (three children; NOK 25,000 + NOK 5,000 + NOK 5,000). Prior to the birth of their joint child each cohabitant was entitled to deductions within his or her own maximum allowance, i.e. up to NOK 25,000 each (both parents have a child from a previous relationship). This will entitle them to a total maximum deduction of NOK 40,000 (NOK 25,000 + NOK 15,000). In this case the most favourable solution will be to apply the exception rule, which will mean a child-care deduction of NOK 40,000 for 2006. Which spouse/cohabitant is entitled to the deduction Spouses with joint tax assessment (joint and separate assessment): If the spouses are in agreement about how to divide the deduction, the tax assessment will be based on this. In the absence of an agreement, the deduction will be shared equally between them. If the deduction is greater than the income of one spouse, the remainder of the deductible amount will be transferred to the other spouse. Marriage entered into during the year: If the spouses choose to deduct their individual maximum amounts for child care since both have children from previous relationships, they each deduct for their own child/children from previous relationships. If they choose to deduct a joint maximum amount, they can deduct half each, unless they have agreed on a different division. Marriage ended during the year – one of the spouses takes on sole care and control: If spouses divorce or separate, the spouse taking on sole care and control and with whom the child continues to live will be entitled to the child care deduction. If there are several children and each of the parents retains sole care and control for at least one of them, both parents will be entitled to a child-care deduction. This is conditional on the parents actually living apart. Furthermore, the division of the care and control function must be of a permanent nature. – the parents share the care: See below about shared care. Cohabitants – spouse-equivalent and non spouse-equivalent If cohabitants have joint children, each will deduct half of the allowance, unless they have agreed on a different division. This applies irrespective of whether one or both of the cohabitants also have children from other relationships. If a joint child has been born to the cohabitants during the income year and both already had children from previous relationships, each of them will retain for the rest of the year the maximum deduction to which they were entitled prior to the birth of their joint child. If the cohabitants choose to deduct the joint maximum amount, they will deduct half each, unless they have agreed on a different division. If the parents do not have any joint children, the child-care deduction will fall to the parent who is the mother or father of the child/children of previous relationships. In these cases it is not possible to choose a different division. If one of the cohabitants has a child/children from a previous relationship and the couple has no joint children, the other spouse is not entitled to any child care deduction from his or her income. Break-up of relationship during the year – one of the spouses takes on sole care and control of the joint children: If there are circumstances that indicate that one of the parents has main care and control of a child, the person caring for the child for most of the year, i.e. the one with whom the child has been living for the majority of the year, will be entitled to the child-care deduction. Shared care and control of a child (when the parents do not live together) Shared care and control is when, by agreement or for purely practical reasons, a child spends an equal amount of time with each of its parents (neither parent has main care and control). Shared care and control does not mean that each of the parents can claim the maximum child care deduction, even if the child lives alternately with each parent. If care and control is shared and both parents pay for minding and caring for the child, each parent can claim a part of the maximum joint child care deduction in proportion to his or her share of the expenses paid by each of them. Alternatively, parents may ask to utilise the whole deduction in alternate years. In this case, the parent whom the child (children) is (are) living with at the end of the year of the divorce/ separation/ break-up will be entitled to the child care deduction for that year, the other parent the following year, and so on. If the parents have several children, the case of each child must be considered separately. Change of care and control If each of the parents had sole care and control for part of the income year, the parent with sole care and control for the majority of the year will be entitled to the child-care deduction. If the parent with sole care and control dies, the deduction will still be made from the deceased parent’s income. If the surviving parent takes over care and control of the child, this parent will also be entitled to a child-care deduction. Tax assessment in class 2 – sole provider Parents will be assessed in tax class 2 if they have the care and control of children aged 17 or less (born in 1989 or later) or if they provide for young people aged 18 or older (born in 1988 or earlier) and are: • unmarried (non-spouse-equivalent cohabitants who acquired spouse-equivalent status on 31 October 2005 or earlier are not considered to be unmarried) • divorced, separated, widowed • cohabitants without joint children (does not apply to spouse-equivalent cohabitants assessed as spouses), or • married / acquired spouse equivalent status after 31 October 2005 without joint children, provided that the spouses/ cohabitants do not demand to be assessed jointly. The parent with care and control of children is normally the one with parental responsibility (alone or shared) and with whom the child lives. If the child has lived away from home due to schooling or a stay in an institution, the conditions for care and control may still be met if the child is home during the holidays and at weekends, or the person with parental responsibility pays frequent visits to the child in the institution. Virtual full provider responsibility is required to be classified as the ”actual provider” of children aged 18 or more (born in 1988 or earlier). This condition is considered in more detail below. Divorce and separation When spouses divorce or separate, the one taking on sole care and control, and with whom the child is living, is entitled to tax assessment in class 2. If there are several children and each of the parents has sole care and control of at least one of them, both parents may be regarded as sole providers, and assessed in tax class 2. This is conditional on the parents actually living apart after the break-up of the relationship. Furthermore, the division of the family with respect to care and control of the children must be of a permanent nature. If sole care and control is transferred during the income year, the parent who has had care and control as sole provider for the majority of the year will be assessed in tax class 2. If the parent who has sole care and control dies, then he or she will always be assessed in tax class 2, even though the surviving parent has care and control at the end of the income year and is thus eligible for assessment in tax class 2. Divorce/separation/break-up, The parents have shared care and control which is divided between them If parents who do not live together have shared care and control (not sole care and control) of a child, this does not mean that each of the parents can be assessed in tax class 2. In these cases, the parent who has had daily care and control of the child for the majority of the year, i.e. the one with whom the child has been living for most of the year, will be entitled to assessment in tax class 2. If the spouses have several children, each child must be considered on an individual basis. If the child (children), by agreement or for purely practical reasons, spends (spend) an equal amount of time with each parent (neither parent has main care and control), each of the parents can be assessed in tax class 2 in alternate years, provided there is nothing to indicate that one of them has the main care and control. In this case, the parent with whom the child (children) is (are) living at the end of the year of the divorce/ separation will be entitled to assessment in tax class 2 for that year, the other parent the following year, and so on. Tax class 2 due to provision for children born in 1988 or earlier – actual provision. The sole provider may also be assessed in tax class 2 if the child in question is 18 or over at the end of the income year. It is not, however, enough to have had care and control of children in this age group; you must actually have provided for them. If the total income of the child does not exceed NOK 32,000 during the income year, it can normally be assumed that the child is being provided for. This amount is arrived at on the basis of the child’s general income minus any special allowances, i.e. amounts in item 3.6 of the tax return. Individual deductions from general income will not normally affect the ability of the child to provide for him or herself and will be added to the income. Additions must also be made for tax-free child maintenance payments. The calculation will be as follows: Amount in item 3.6 of the tax return + minimum standard deduction to which the child is entitled from its income and children’s pension (items 3.2.5 and 3.2.6) + special income allowance for young people (see item 3.3.7) + deduction for payments to pension schemes (item 3.2.12) + deductible loss carried forward from previous years (item 3.3.9) + deductions for grants and gifts (item 3.3.7) Tax-free child maintenance = computed income of the child (the amount is not to be entered in the tax return). Children who have been doing their national service for the majority of the income year, or who have received a loan from the Norwegian State Educational Loan Fund without means testing will not normally be regarded as being provided for, even if their general income does not exceed NOK 32,000. If the burden of provider is particularly great due to disability etc, actual provision may be deemed even though the child’s computed income is more than NOK 32,000 and/or the child has received a loan from the Norwegian State Educational Loan Fund without means testing. The decision as to whether actual provision applies in these cases will rest on a total evaluation that also takes account of all tax-free benefits and loans. Assessment in tax class 2 because of provision for children of 18 or over will not be given automatically; it must be claimed by the provider, the claim being submitted and justified in the tax return. Life insurance By life insurance, we mean an insurance scheme that is linked to a person’s life and health. In the following we will deal with the tax rules applying to two different types of life insurance: • Endowment insurance • Individual annuities Endowment and annuity insurance can be taken out either as risk policies alone or as combined policies that include both risk and savings. Only the savings element of such policies is liable to tax and thus dealt with below. Individual annuities subject to the special taxation rules that apply to individual pension agreements (IPA) pursuant to the Tax Act are not discussed here. Both annuities and endowment insurance policies normally have a guaranteed yield. In the case of policies without a guaranteed yield (unit-linked), the yield will depend on the return from the units of securities in which the savings have been invested. In Norway, such policies can only be taken out through a unit-linked insurance company. Contracts without guaranteed yield are required to include an adequate element of insurance in order to qualify for taxation under the rules applying to endowment insurance and annuities. Annuities Disbursements Periodic disbursements from annuities are generally taxable in full as capital income. Unlike interest income from bank deposits, yield from the savings element of an insurance policy is not taxable as it is earned. However, provided that the statutory tax requirements regarding product and insurance period are met, you will only be taxed on the amount of the disbursement that exceeds the premium paid. In practice this applies to most annuities taken out in Norway. Agreements with companies in other EEA member states must be evaluated in each case for compliance with the above conditions. Disbursements from annuities in companies outside the EEA are taxable in their entirety. Taxable income from individual annuities must be entered under item 2.6.2 in the tax return. Individual unit-linked annuities may yield a loss in relation to the capital invested. Such loss is tax-deductible at the time the insurance disbursements are made, and should be entered under item 3.3.7 of the tax return. Income from group annuities should be entered under item 2.2.2. Disbursements from group annuities are taxable in their entirety, and they are also subject to a low-rate National Insurance contribution and (where applicable) surtax. Your tax deduction card does not include income from annuities in companies outside Norway. Therefore, when you receive the first disbursement from such annuities, you should contact your local tax assessment office to arrange for any necessary tax prepayment, thereby avoiding subsequent liability for underpaid tax, with interest. Capital In principle the surrender value of annuities is not taxable as capital. However, you will be liable to wealth tax on the surrender value of individual annuities taken out after 5 October 2006 and individual annuities for which you have made payments after 5 October 2006. The amount in question should be entered under item 4.5.2. Wealth tax is not payable on annuities acquired using money from compensatory damages for personal injury where the amount was determined pursuant to chapter 3 of the Norwegian Act relating to compensation in certain circumstances, and finally fixed before 6 October 2006. This exception does not, however, apply to annuity insurance acquired using money from compensatory damages where the amount was determined pursuant to the provisions of section 3-2 a of the Act relating to compensation in certain circumstances. The value of individual annuities taken out with companies which are/were not authorised to conduct insurance business in Norway is never liable to wealth tax. Endowment insurance Endowment insurance is a type of insurance involving the disbursement of a specific amount. This will normally take the form of a lump sum payment, but is sometimes divided into instalments. Endowment insurance policies with guaranteed yield are taxable annually on the year’s yield from the savings element. Endowment insurance policies without a guaranteed yield are taxable on disbursement. Endowment insurance without a savings element is not dealt with here. Endowment insurance with guaranteed yield Yield The calculated annual yield constitutes taxable income even if disbursement is actually due on an agreed date in the future. The income will be taxed on a running basis the year after it has been earned. This means that in 2006 you will pay tax on yield earned in 2005. The insurance company fixes the yield. If you are insured with a Norwegian company or a Norwegian branch of a foreign company, you can ask the company to make a deduction for tax payable on this income. You enter the income under item 3.1.4 of the tax return. As from income year 2004 insurance taken out with companies in other EEA member states has also been taxable in this manner. Holders of such insurance should enter the taxable income under item 3.1.11 of the tax return and be prepared, at the request of the local tax assessment office, to document how the amount was arrived at. Your tax deduction card will not always include income from endowment insurance taken out with companies outside Norway. You should therefore contact your local tax assessment office to arrange for any necessary tax prepayments, thereby avoiding subsequent liability for underpaid tax, with interest. Disbursements In principle disbursements from endowment insurance with guaranteed yield do not constitute taxable income. However, if the insurance was taken out on 1 January 1986 or later with a company outside the EEA, the whole disbursement will be taxable, with no deduction for paid premiums. The amount should be entered under item 3.1.11 in the tax return. Disbursements from foreign insurance companies to surviving family members etc. are not liable to tax. Previous transitional rule for the income year 2004 If you have taken out endowment insurance with guaranteed yield in a company in another EEA member state and requested, under the transitional rule, to pay tax on previous years’ yield for the income year 2004, then disbursements received from the insurance prior to 2004 are not taxable. Yield earned in subsequent years, however, is taxable annually. The deadline for the 2004 tax return also applied to requests for taxation pursuant to the transitional rule. If you did not claim such application of the transitional rule, disbursements from the insurance are taxable in part. The part of the disbursement that includes premiums paid before 1 January 2004 and the total yield earned prior to that date is taxable. The rest of the disbursement is not liable to tax. After 2004 tax has been payable annually on earned yield from the insurance. Capital For wealth-tax assessment purposes, endowment insurance is valued at 100 per cent of surrender value. The amount should be entered under item 4.5.2 of the tax return if you took out the policy with a Norwegian company and under item 4.6.2 if the policy is with a foreign company. Unit-linked insurance (Capital insurance without garanteed yield) Yield The yield from this type of insurance is the change in market value of the underlying units in funds etc, minus insurance charges. This yield is taxable on disbursement. The same applies if you receive such a disbursement as inheritance. Disbursements Disbursements from these policies are usually made as lump sums. The taxable income is the gross market value of the underlying units in funds etc. minus the total premiums and charges paid to the insurance company. Disbursements from unit-linked insurance policies with companies outside the EEA are taxable in their entirety, with no deduction for paid premiums. Any negative difference between market value and paid premiums and charges constitutes a loss, which can be deducted from item 3.3.7 of the tax return. If you have taken out the insurance with a Norwegian company or a Norwegian branch of a foreign company, the company will make these calculations. If you are insured with a company in another EEA member state, you yourself must calculate the amount and enter your taxable income or deductible loss. Example You calculate as follows: Market value of underlying units - Premiums and charges paid to the insurance company = Taxable income / Deductible loss Your local tax assessment office may require you to document how you arrived at the income/loss. Capital The capital value of unit-linked insurance is the surrender value of the units that are linked to the savings element of the insurance policy. If you have taken out the endowment insurance with a Norwegian company or a Norwegian branch of a foreign company, you will find the capital value in the statement you have received from the company. You enter the capital value under item 4.5.2 if you are insured with a Norwegian company and under 4.6.2 if your policy is with a foreign company. Minimum standard deduction - calculation The minimum standard deduction is a standard deduction from pay, pensions and similar income, see item 3.2.1. If the actual expenses relating to employment or work are greater than the standard minimum deduction, you may claim a deduction for these under item 3.2.2 instead of applying the minimum standard deduction. The minimum standard deduction is calculated as shown below. Only wage earnings etc. (not pensions etc..) Temporary disability benefit and rehabilitation benefits also count as wage earnings. If you only have wage earnings etc., the minimum standard deduction is calculated as follows: The minimum standard deduction is 34 per cent of your income. The calculation basis (total income) is rounded off downwards to the nearest whole NOK 100. The minimum standard deduction amounts to at least NOK 31,800, with a ceiling of NOK 61,100. If your pay is less than NOK 31,800, the minimum standard deduction is equal to your pay. For example if your income is NOK 20,050, your minimum standard deduction will be NOK 20,050. If you have only lived in Norway for part of the year, the minimum standard deduction’s upper (NOK 61,100) and lower (NOK 31,800) limits will be reduced in proportion to the number of whole or part months of the income year you have resided in Norway, see « Informasjon til deg som har inntekt eller formue I utlandet” at skatteetaten.no Only pension, periodic payments etc. (not wage earnings etc.) If you only receive a pension, periodic payments etc. the minimum standard deduction is 24 per cent of the total of items 2.2.1, 2.2.2, 2.6.1 and 2.6.2. The calculation basis (the income) is rounded off downwards to the nearest whole NOK 100. The minimum standard deduction amounts to at least NOK 4,000, with a ceiling of NOK 51,100. If your pension is less than NOK 4,000, the minimum standard deduction is equal to your pension. For example, if your income is NOK 3,550, the minimum standard deduction will be NOK 3,550. If you have only lived in Norway for part of the year, the minimum standard deduction’s upper limit (NOK 51,100) will be reduced in proportion to the number of whole or part months of the income year you have resided in Norway. The lower limit of NOK 4,000 will not be reduced, see «Informasjon til deg som har inntekt eller formue I utlandet” at skatteetaten.no Combination of wage earnings and pension etc. If your pay amounts to NOK 179,800 or more, you are entitled to a minimum standard deduction of NOK 61,100. This applies even if you also receive a pension etc. If your pay is less than NOK 179,800 and you also receive a pension, you are entitled to the highest possible minimum standard deduction according to one of the alternatives listed below: • Alternative 1: • Minimum standard deduction calculated only on pay etc. not on pension etc. The calculation will be as shown for «Only pay etc. » above. Alternative 2: The minimum standard deduction constitutes the sum of the separate minimum standard deductions calculated on pay etc. and on pension etc, but may not total more than NOK 61,100. The minimum standard deductions on pay and pension respectively are calculated as shown above, but in the case of pay the lower limit is NOK 4,000, not NOK 31,800 as is the case if you only receive pay. See alternative 2 in the example. For the minimum standard deduction on children’s pensions and pay, see item 3.2.6. Example Wage earnings Pension (not children's pension) Total pay and pension NOK 40, 000 NOK 80,000 NOK 120,000 Minimum standard deduction using alternative 1: Minimum standard deduction calculated on pay: 34% of NOK 40,000 = NOK 13,600 but the minimum standard deduction must never be less than NOK 31,800. Minimum standard deduction using alternative 2: Minimum standard deduction calculated on pay: 34% of NOK 40,000 = 13 600 If alternative 2 is used, the lower limit is NOK 4,000, not NOK 31,800. If alternative 2 is used, the minimum standard deduction on pay is NOK 13,600. Minimum standard deduction calculated on pension: 24% of NOK 80,000 = NOK 19,200 Using alternative 2 gives a minimum standard deduction on pay and pension of NOK 32,800. Since the use of alternative 2 gives the highest minimum standard deduction, NOK 32,800 shall be entered under item 3.2.1. Payments in kind - valuation Payments in kind are benefits in the form of goods, shares, low-interest loans, services, rights of use or other benefits that are not cash, cheques or similar. This applies irrespective of whether the benefit is made available to the recipient free of charge or at a reduced price/ rate. Benefits in kind from an employer are generally liable to tax. The income should be entered under item 2.1. It is difficult to put an exact value on some payments in kind. Fixed rates are therefore used to calculate the value of these. The rates applying to benefits in the form of low-interest loans from employers, subsistence allowance and electronic communication (free telephone etc.) are given below. For private use of an employer’s car, see “Car” . If the value of a taxable benefit in kind is not declared in the Certificate of Pay and Tax Deducted, it must be declared in the tax return or enclosure. If there are no valuation rates (see below) you do not need to declare the value. Your local tax assessment office will make the valuation on the basis of the information you provide. Benefit of low interest on loans from employers The benefit of low interest on loans from employers is taxable income if the interest on the loans in 2006 was lower than the normal rate, and the loan was • granted by your current or former employer or • granted by others with your employer acting as intermediary, or your employment was the reason for the loan The normal interest rate is fixed by the Ministry of Finance up to six times a year. For 2006 the normal interest rate for low-interest loans is: Jan./Feb. March/April May/June 2.50% 2.75% 2.75% July/Aug. 2.75% Sept./Oct. 3.25% Nov./Dec. 3.50% It is of no significance if your employer has borrowed the money at a low interest rate, nor if you could have obtained a low-interest loan elsewhere. However, the benefit of low interest on loans from employers is not liable to tax if loans are available on the same terms to borrowers who are not employees and the recipient of the loan in question would have been offered the same loan had he or she not been an employee. Calculation of the taxable benefit: The taxable benefit is the difference between actual interest paid, including charges under the loan agreement, and an amount based on the normal interest rate. The benefit of low interest on loans from employers should be entered under code 120-A in the Certificate of Pay and Tax Deducted. If your employer has not entered the benefit of the low-interest loan under code 120-A in the Certificate of Pay and Tax Deducted, you must calculate the benefit yourself. The amount must be entered as taxable benefit under item 2.1.1 and must also be entered as interest on debt under item 3.3.1 of the tax return, along with the actual interest. Free board and lodging Free board and lodging is generally liable to tax and must be reported as pay in code 112-A of the Certificate of Pay and Tax Deducted. If the free board and lodging is provided in connection with periods of work entailing stays away from home, it is not taxable. Employees in receipt of free board and lodging when commuting are liable to tax on savings on household costs. The savings are defined as at NOK 70 per day. The daily rates for free board and lodging for the 2006 income year are: Free board and lodgingNOK 96 Free board (all meals)NOK 70 Free board (two meals)NOK 55 Free board (one meal)NOK 36 Free lodging (own or shared room) NOK 26 Electronic communication (free telephone, broadband etc..) Benefits from private use of your employer’s telephone, broadband etc. (EC services) outside the normal work situation has been fixed at NOK 4,000 for one EC service and up to NOK 6,000 for two or more services. The benefit is calculated on the basis of the amount of the total value of these services (fixed costs + use) in excess of NOK 1,000. Any payment you yourself make will reduce the value of the benefit. Example Free telephone for the whole 2006 income year Value of service NOK 3,000 - Tax-free basic amount NOK 1,000 = Taxable benefit Example NOK 2,000 Employer-financed telephone and broadband, income year 2006. Paid by employee NOK 1,500. Value of service (broadband + telephone) NOK 9,000 - Tax-free basic amount NOK 1.000 = Calculated benefit before limitation NOK 8,000 Limited maximum amount for two services NOK 6,000 -Paid by employee NOK 1,500 =Taxable benefit NOK 4,500 If you have had a free telephone etc. for parts of the income year, the value of the benefit will be reduced proportionately with the number of whole or part months in which the services were available. Commuters You are regarded as a commuter if, for the purpose of your job, you have to commute between your home and your accommodation at the place where you work. Commuters are entitled to deductions for extra expenses for board and lodgings at the place where they work and for home visits, see items 3.2.7 and 3.2.9. In order to be classified as a commuter, your place of domicile for tax purposes (tax domicile) must be in a different location from your place of work. If you live alternately in two or more residences, only one may be registered as your tax domicile - so it will be necessary to determine which one. Your tax domicile will normally be the same as the residence registered in the population register. If you think you meet the requirements for classification as a commuter you should inform the population register. As a general rule, the place where you spend most nights (the majority of your daily rest time) is considered as your place of domicile. The so-called commuter provisions are an exception to this. Pursuant to these provisions you may, in certain circumstances, be deemed tolive in your home municipality even if you spend most nights (the majority of your daily rest time) in the municipality where you work. It is a requirement that your work or activity necessitates the use of two residences and that the distance between your place of work and your home is sufficiently great to make daily commuting impracticable. Work in this context means that you receive pay or other remuneration for work performed for an employer/client. Activity means activity of a commercial nature such as the sale and/or production of goods and services. Studies are not regarded as work in this context. This means that if studies are your main reason for living away from your parents’ home, you are not classified as a commuter even if you have a part-time job in addition to your studies. There are several other requirements for classification as a commuter. Please note that there are different requirements for single and family commuters. Independent or dependent housing Housing is regarded as independent if the living area is at least 30 square metres. If there are several people living in a house/apartment, a further 20 square metres must be added for each occupant over 15 years of age. You must have use of the house/apartment for at least twelve months and have access to it every day. The house/apartment must also have running water and drainage. If you rent an apartment in a unit occupied by others (self-contained bed-sit/ small apartment), the sum of the area which you alone use plus your share of the common areas will constitute the basis for determining whether the housing is independent. If there are seven or more occupants over 15 years of age in the apartment, only the area you use alone will be taken into account. In this context, dependent housing is housing that does not meet the above requirements for independent housing. Family commuters You count as a family commuter if you live in your home municipality with: • your spouse /registered partner • your own children or • your dependent siblings Adoptive children are classified as equivalent to own children. The same applies to foster children whose foster parents do not receive foster-home payment where the relationship generally has the character of an adoption. The rules for determining the tax domicile of family commuters are simple. You are domiciled where your spouse or your children live. If you live with siblings for whom you are the provider, you are domiciled where your siblings live. Irrespective of the circumstances, your joint home with your spouse takes precedence over joint homes with others. If both you and your spouse are commuters, your domicile is where you have your joint home with the children. If you do not have children, your domicile is the house/apartment that is regarded as independent. If you commute between several independent houses/apartments your home is where you and your spouse together, spend most nights (most of your daily rest time). Single commuters If you are not a family commuter you are classified as a single commuter. Cohabitants are reckoned as single in this context unless they also live with their own children, in which case they are classified as family commuters. The rules for determining the tax domicile of single commuters are more complex. In addition to meeting the requirements for classification as a commuter, you must also take account of the rules described in the “Travel” section below. There are different rules for commuters under 22 and over 22 years of age at the end of the income year. The different factors that affect the determination of which house/apartment constitutes your domicile are described below. Please note the so-called comparison rule that comes at the end. The main rule is that a single person commuting between his/her parental home and other accommodation is regarded as domiciled in the parental home. In the case of commuters who reach the age of 22 or over in the income year, this only applies if the house/apartment at their place of work is dependent. See the section above on independent and dependent housing. If you commute between independent housing in your home municipality and dependent housing at your place of work, your domicile is in your home municipality. If the housing in your work municipality is also independent, your domicile is where you spend most nights (most of your daily rest time). However, if you start to commute from a municipality in which you have already been domiciled for at least three years, you are entitled to remain registered as domiciled in this municipality if you otherwise satisfy the conditions. For more about this, see the comparison rule below. If your housing in your home municipality is dependent and that in your work municipality is independent, your domicile is in your work municipality. If both the housing in the work municipality and the housing in your home municipality are dependent, your domicile is where you spend most nights (most of your daily rest time). Comparison rule Even if you do not meet the above requirements, you may nevertheless be classified as a commuter if you have been registered as domiciled in your home municipality for at least three years when you start to commute. In this case, even if your housing in your work municipality is half the size of that in your home municipality, you may still retain your home municipality as your tax domicile, provided that you or your spouse own or rent the house/apartment there. In order for you to be allowed to apply this rule, your houses/apartments must be located in different municipalities. Travel – how often does a person have to travel between the place of work and the home municipality If you are a family commuter there are in practice no requirements regarding how often you need to travel home. If you are single and over 22 years of age at the end of the income year, you are normally required to travel home at least every third week. If the distance is short, you will be required to return home more often. Less frequent home visits may be accepted if there are special circumstances, such as illness, shortage of money or studies in the evening. If you are single and under 22 years of age at the end of the income year, there are no minimum requirements about the frequency of home visits, but the rules require you to travel as regularly and frequently as reasonably possible. If you are in doubt about whether you travel home often enough, contact your tax assessment office/ the population register. Tax limitation Tax limitation for pensioners and recipients of National Insurance benefits with low general income Persons who are aged 70 or over on 31 December 2006, or who have received a retirement pension, full disability pension, early retirement pension (AFP), surviving spouse’s pension or transitional benefit, are not liable for municipal/county tax, equalisation tax or National Insurance contributions if their general income plus any supplements (see below) does not exceed NOK 95,300. For spouses (including registered partners and spouse-equivalents) who are assessed jointly or independently, the amount is NOK 156,300 for both spouses together, even though only one of them meets the above conditions. If the general income is greater than NOK 95,300 for single persons/ NOK156,300 for married couples, the sum of income tax paid to the municipality and county, the tax equalisation fund and National Insurance contribution must not exceed 55 per cent of the income over NOK 95,300 or NOK156,300, respectively. Any surtax or wealth tax will be paid in the normal manner. If the person entitled to tax limitation has capital assets, two per cent of that person’s and (if married) of his or her spouse’s net wealth over NOK 200,000 is added to the income when computing the tax limitation. Example A single retirement pensioner receives a gross pension of NOK 125,000 and NOK 3,000 in interest income. The general income before special allowances Is NOK 98,000. Net wealth Is NOK 215,000. Income tax before tax limitation is NOK 12,105 and the National Insurance contribution NOK 3,750, totalling NOK 15,855. Wealth tax, in this case NOK 135, is not included in the tax limitation rule. Tax limitation basis: General income (before special allowances) + 2% of net wealth over NOK 200,000 = computation basis for tax limitation - tax-free amount = amount on which 55% tax shall be paid Computed tax: 55% of NOK 3,000 NOK 98,000 NOK 300 NOK 98,300 NOK 95.300 NOK 3,000 NOK 1,650 Ordinary tax on corresponding income would have been NOK 15,855. The taxpayer has thus been given a tax reduction of NOK 14,205. Tax limitation is given automatically on assessment. The taxpayer does not need to claim it. Tax limitation in the case of insufficient income Other taxpayers with low incomes can apply for tax limitation. Low income in this context means that the income, combined with other benefits such as wealth, inheritance, gifts etc. is not sufficient to provide a necessary, moderate subsistence level for the taxpayer him/herself or persons he or she has a duty to provide for. The wealth and income of the spouse and other members of the household is taken into account. Income means general income (before special allowances). Married couples’ income is regarded as one income, also for the year in which they married, even if they are assessed independently. Spouses who are separated are classified as single persons as from the year of separation. The income of children who are assessed together with the taxpayer is included. The same applies to the income of any other members of the household over and above the amount estimated to be necessary for their own subsistence. Tax-free income such as inheritance, gifts, lottery winnings, grants, child benefit etc. must also be included in the income. In this context, two per cent of net wealth over NOK 200,000, including the wealth of other members of the household, also counts as income. Expenses that are deducted when fixing general income, but which are not essential for subsistence, will be added to the general income. This applies, for instance, to interest on debt on holiday homes, leisure boats and unnecessarily expensive housing. The same applies to sums paid into individual pension agreements and losses on sales, for example of real property. Tax limitation will not normally be given if the low income is due to a temporary fall in income, to working only part of the year or doing part-time work (for example because of education), or because the taxpayer has chosen for other reasons not to have income-generating work. Persons who were entitled to loans from the Norwegian State Educational Loan Fund for six months or more in 2006 are not entitled to tax limitation. Nor are taxpayers whose income has been estimated. Tax limitation is not given automatically. It is subject to individual means testing and computed in the same way as tax limitation for pensioners and persons in receipt of National Insurance benefits. If you are applying for tax limitation, you must state this in your tax return or on an enclosed separate sheet. Limitation to 80 per cent of general income If the sum of wealth tax and tax on general income is greater than 80 per cent of general income before special allowances, the wealth tax to the central government and, thereafter, the wealth tax to the municipality will be reduced so that this limit is not exceeded. However, tax on net wealth over NOK 1,000,000 may not be reduced to below 0.6 per cent of wealth in excess of this amount. Married couples are only entitled to such tax limitation if their income is assessed together (i.e. joint assessment). Married couples who are assessed independently on their income are not entitled to tax limitation. When taking account of the eighty-per-cent rule the tax authorities will choose the method of assessment that results in the least tax for the married couple as a whole. Tax limitation is given automatically on assessment. The taxpayer does therefore not need to apply for it. Special allowance for major sickness expenses You are entitled to a special allowance for major sickness expenses due to persistent illness or debility, provided that the expenses amount to at least NOK 9,180. In this context “persistent” means that the illness/ debility must be assumed to last for at least two years. There is no special allowance for expenses that would normally be incurred by other persons not suffering from corresponding illness or debility. If you are claiming a special allowance, you must enclose a medical certificate with your tax return. If you have already submitted a medical certificate stating that your illness is chronic, it will not be necessary to submit a new medical certificate for every year you claim the special allowance. If you are the provider for children who suffer from persistent illness or debility, you can claim a special allowance for extra supervision expenses provided that the same expenses have not been deducted as normal child-care expenses see item 3.2.10 (child-care deduction). Extra supervision expenses are deductible even if they are less than NOK 9,180. If you, or a person for whom you are the provider, have other deductible sickness expenses, these will qualify for the special allowance if they total more than NOK 9,180 after the extra child supervision expenses have been added. If the total sickness expenses are lower than NOK 9,180, you will only be entitled to a special allowance for extra supervision expenses. You are deemed to be the provider if you pay a not insignificant part of a person’s ordinary living costs. If spouses each claim a special allowance, they must each have expenses in excess of NOK 9,180. Sickness expenses must be substantiated/ documented. You will be allowed to deduct extra expenses if the tax authorities find it highly probable that they have been incurred. Forms provided by special interest organisations for the specification of extra expenses in connection with a specific illness are not necessarily adequate documentation or substantiation of expenses. If you incur regular expenses that are difficult to document, it may be sufficient to show that they were incurred for a continuous period (of at least one month) in the course of the year. You may be entitled to a special allowance for major sickness expenses in addition to a special allowance for age or disability. Expenses in connection with persistent illness or debility include direct costs (medication and doctors’ fees etc.), indirect costs (transportation costs etc.), extra costs due to a more costly diet (expensive diet) and the costs of supervision, care and help in the home. Expenses incurred as a result of visiting the ill person may also be included if it is a spouse or dependent child who is chronically ill. You may not include expenses that you would have incurred regardless of whether you were ill or not in the special allowance. If you have received a tax-free benefit from the government to cover illness or debility expenses (for example basic benefit or supplementary benefit), your deductible sickness expenses will be reduced by the amount of benefit received. Example: Your sickness expenses amount to NOK 10,000 (not including extra supervision expenses). In connection with your illness you receive a tax-free benefit from the government of NOK 1,000, which is then deducted, thereby reducing your sickness expenses to NOK 9,000. This means you are not entitled to a special allowance for major sickness expenses since the expenses are now below the limit of NOK 9,180. A benefit will not, however, be deducted from expenses other than the expenses the benefit is intended to cover. You are not entitled to a special allowance for expenses covered tax-free by your employer. Expenses for treatment, care or a stay in an institution or from a private health care practitioner outside the Norwegian public health service will only qualify for a special allowance if corresponding treatment or care is not available from the Norwegian health and social services, and is deemed to be medically justifiable. Special information for diabetics: Relevant extra expenses for diabetics are outlays for: • aids and equipment for treatment • medication • diet, including the cost of hypo food • extra wear and tear on clothes and bed linen • physiotherapy • dental treatment • chiropody • travel in connection with treatment • higher insurance premiums etc. If you are claiming a special allowance for extra expenses relating to diabetes, you must substantiate/ document them in the same way as other taxpayers who are claiming a special allowance for major sickness expenses. Documentation of extra expenses that can easily be documented by receipts must be submitted to the local tax assessment office on request. This may apply, for example, to expenses for extra consultations with your doctor and necessary equipment. If you are claiming a special allowance for extra dietary expenses, you must be able to document their necessity by a medical certificate. It will suffice to submit receipts for purchases of such food for a continuous period of at least one month during the year. If you cannot substantiate the extra dietary expenses, they will be estimated to be NOK 4,000 for the whole of 2006. Expense allowances Expense allowances, such as subsistence, phone, travel and car allowances, are allowances that are intended to cover expenses incurred in the performance of your work, assignments or official duties. If an expense allowance is greater than the actual expenses incurred, the surplus is taxable and must be entered under item 2.1.4. If the allowance is less than your actual expenses, you are entitled to enter a deduction for the deficit under item 3.2.2 provided that you are not claiming the minimum standard deduction. If you are claiming the minimum standard deduction, any such deficit is included. This does not, however, apply to a deficit on allowances intended to cover extra expenses where the work involves stays away from home. In such case you are entitled to deduct the deficit in addition to the minimum standard deduction, entering it under item 3.2.7. Any deficit on allowances for home visits may also be deducted in addition to the minimum standard deduction. This deduction is made under item 3.2.9. The tax authorities may require you to substantiate that the allowance you received was actually used to cover expenses incurred in connection with your work. This applies as a general rule even if your allowance is based on the Norwegian government travel expense rates. In this context “substantiation” means that you may be required to submit a chronological list of your arrangements during the employment period in question. Allowances that follow the government rates are not generally assumed to produce a surplus. It is a condition that the allowance corresponds to your actual arrangements. For example, if you are lodged in a portakabin, you will in principle be taxed on surplus if you receive a subsistence allowance based on hotel rates. For more about how to calculate the surplus on subsistence allowances based on the government travel rates expense allowances to cover the cost of home visits and telephone allowances etc, see below. For car allowances, see ”Cars” . Subsistence allowance for business travel with overnight stays – in Norway and abroad In the case of business travel in Norway, the allowance does not normally yield taxable surplus if you yourself have covered your board and lodging and the daily outlays do not exceed • NOK 460 for accommodation in a hotel, where breakfast is not included in the room price • NOK 385 for accommodation in a hotel, where breakfast is included in the room price • NOK 256 for other accommodation without cooking facilities, e.g. boarding house or bedsit/portakabin • NOK169 for other accommodation with cooking facilities (bedsit/portakabin or private accommodation) If you have received an allowance based on hotel or boarding-house rates, you must be able to substantiate or document that you stayed at a hotel or boarding house, or that your outlays corresponded to the allowance. If, for example, you have received an allowance based on hotel rates, but can only document other accommodation without cooking facilities, you must declare a surplus of NOK 204 per day (NOK 460 minus NOK 256). In the case of business travel abroad, payments in accordance with the government rates for the country in question are not normally expected to yield a surplus if you can show that you stayed at a hotel. If you used other accommodation, the same rates apply as for travel in Norway, and you must declare any surplus. Commuters – savings on household costs Employees are liable to tax on savings on household costs in connection with commuting (i.e. when the stay away from home is not due to business/ job-related travel) if: • the employer provides board and lodging (subsistence expenses covered directly by the employer) • the expenses are covered on the presentation of bills The savings on household costs are estimated at NOK 70 per day. The amount is stated under code 143A in the Certificate of Pay and Tax Deducted. Subsistence allowance for business travel without overnight accommodation – in Norway and abroad Subsistence allowance based on or lower than the government rates for business travel without overnight accommodation are not expected to produce a taxable surplus. If you are claiming deduction for any deficit, you must document all expenses. Expense allowance to cover costs of home visits Employers are required to report these allowances under code 721. If you receive an expense allowance to cover your expenses in connection with home visits, you must use the net method. This means that the home visit allowance is offset against the distance deduction, with an extra deduction for road tolls or ferry expenses, if applicable. Any surplus is taxable and any deficit is deductible. When making the comparison (offsetting), the basic deductible allowance of NOK 12,800 must be subtracted from the distance allowance plus any actual road tolls, ferry or air travel expenses. The basic allowance is the same for both home visits and daily travel between the home and the place of work (travel to/from work)). If you are entitled to an allowance for daily travel between your home and permanent place of work (travel to/from work), the basic allowance must be deducted from this first. If the allowance for travel to/from work is greater than the basic allowance, the basic allowance will only be deducted from this allowance and not from the allowance for home visits. If the allowance for travel to/from work is less than the basic allowance, the difference between the basic allowance and this allowance must be deducted from the allowance for home visits. Example (surplus) If you have received an expense allowance of NOK 12,000 to cover travel for home visits and are entitled to deduct a distance allowance of NOK 11,000 for home visits as well as an allowance for travel to/from work of NOK 5,000, the taxable surplus on the allowance will be: Allowance Distance allowance for home visits NOK 12,000 NOK 11,000 Remaining basic allowance (NOK 12,800 – NOK 5000) - NOK 7,800 Distance allowance after basic allowance NOK Surplus NOK 8,800 Example (deficit) 3,200 If you have received an expense allowance of NOK 10,000 to cover home visits and are entitled to deduct a distance allowance of NOK 11,000 for home visits as well as an allowance for travel to/from work of NOK 12,000, the deductible deficit on the allowance will be: Allowance NOK 10,000 Distance allowance for home visits NOK 11 000 Remaining basic allowance (NOK 12,800 – NOK 12,000)- NOK 800 Distance allowance after basic allowance NOK Deficit NOK 200 10,200 Exceptions for persons with 10 per cent standard deduction For the details regarding deductible allowances for home visits where all or some of the costs are covered by the employer in the case of persons claiming the standard deduction for foreign employees on assessment of their tax, see ”International” at skatteetaten.no/utland Allowance for electronic communication services (telephone, broadband etc.) Allowances for telephone and broadband etc. can be given tax-free up to NOK 1,000 (basic tax-free amount). If the allowance from the employer is more than NOK 1,000, the employee’s benefit is stipulated to be NOK 4,000 for an allowance for one electronic communication service (e.g. telephone) and up to NOK 6,000 for two or more (e.g. coverage of telephone and broadband). This presupposes that actual expenses (fixed costs plus use) are equal to or greater than the allowance from your employer. Any surplus allowance counts as pay. Any coverage by the employee him/herself is deductible from the taxable amount. Example Actual expenses NOK 5,000. An employee receives a telephone allowance of NOK 3,000 from his/her employer. The employee covers NOK 2,000 him/herself. Actual expenses (fixed costs + use) NOK 5,000 - Basic tax-free amount NOK 1,000 - Employee's Own coverage = Taxable benefit NOK 2,000 NOK 2,000 Example Actual expenses NOK 9,000. The employer pays an allowance of NOK 4,000 for telephone and broadband. The employee covers NOK 5,000. Actual expenses (fixed costs + use) NOK 9,000 - Basic tax-free amount NOK 1,000 = Benefit before limitation NOK 8,000 Limited to maximum amount for two services NOK 6,000 - Employee's own coverage NOK 5,000 =Taxable benefit NOK 1,000 If you receive an allowance for a telephone etc, for part of the income year, you will be taxed on the benefit proportionately to the number of whole and part months to which the allowance relates. Rates Wealth tax Municipal Single person NOK 0 – 200,000 over NOK 200,000 NOK 0 – 400,000 over NOK 400,000 NOK 0- 200 000 NOK 200 001–540 000 over NOK 540,000 NOK 0 – 400,000 NOK 400,001–1,080,000 over NOK 1,080,000 0% 0.7% 0% 0.7% 0% 0.2% 0.4 % 0.0% 0.2% 0.4% Married couple Central government Single person Married couple National insurance contributions Income from employment 7.8% Childminder 7.8% Income from self employment in agriculture, forestry and fisheries 7.8% Other income from self employment 10.7% Pension income etc. 3.0% For persons born in 1990 and later or in 1936 and earlier, the national insurance contribution is 3% regardless of the type of income The national insurance contribution must not, however, exceed 25% of incomes over NOK 29,600. Surtax Rate 9% of amounts over 1) 12% of amounts over Tax classes 1 and 2 NOK 394,000 NOK 750,000 1) Taxpayers in Finnmark and Nord-Troms: 9%. Tax on general income Private persons Private persons in Finnmark and Nord-Troms Taxable in arrears (companies/ enterprises) 28% 24.5% 28% Maximum marginal tax rates Maximum marginal tax rate on pay and personal income from agriculture, forestry and fishing 47.8% Maximum marginal tax rate on personal income from other self-employment 50.7% Personal allowance This allowance is given automatically when your tax is calculated (not to be entered in your tax return) Tax class 1 NOK 35,400 Tax class 2 NOK 70,800 Special allowance in Finnmark and Nord-Troms This allowance is given automatically when your tax is computed (not to be entered in your tax return) Tax class 1 NOK 15,000 Tax class 2 NOK 30,000 Housing saving scheme for young people under 34 (BSU) Tax deduction rate 20% Maximum annual savings amount NOK 15,000 Maximum total savings amount in scheme NOK 100,000 Various forms RF-1006 «Spesifikasjon av postene 3.1.1 mv. i selvangivelsen» (Specification of items 3.1.1 etc. in the tax return – in Norwegian only) There is a separate form for specification of the following items in the tax return: 3.1.1 3.1.2 3.1.7 b 3.3.1 4.1.1 4.1.5-4.1.8 4.8.1. RF-1059 «Skjema for fastsettelse av anskaffelsesverdi (inngangsverdi) og beregning av skattepliktig utbytte for aksjer/andeler eid per 31.12.2006» (Form for fixing the acquisition value of taxable dividend from shares/units owned on 31 December 2006 – in Norwegian only) This form must be completed by individual shareholders/ unit-holders who have not received RF1088 ”Oppgave over aksjer and grunnfondsbevis 2006” (Statement concerning shares and primary capital certificates 2006 – in Norwegian only) from the Tax Administration’s register of shareholders or a statement from a securities fund showing units in a unit trust. RF-1189 «Årsoppgjør for utleie mv. av fast eiendom» (Annual accounts for the letting etc. of real property – in Norwegian only) You must submit this form if you let real property or a housing unit in a housing cooperative, and the letting is not part of your business. This applies to the letting of houses, land, agricultural land, parking spaces, apartments in housing cooperatives etc. You must also complete this form if you have your own apartment in a depreciable building, and if you proved benefits to a retired farmer in the form of a right of occupancy outside agriculture and forestry. Owners of houses and holiday homes only need to submit RF -1189 if their house is subject to accounts-based tax assessment. RF-1084 «Avskrivningsskjema for saldoavskrivninger and lineære avskrivninger» (Form for diminishing balance depreciation and straight line depreciation – in Norwegian only) This form must be completed and enclosed with/ attached to your tax return if you are claiming a deduction for operating equipment. You must use Form RF-1152 (straight-line depreciation) for operating equipment specific to power enterprises. RF-1070 «Hjelpeberegning av renteinntekt til ekstrabeskatning ved lån fra personlig skattyter til selskap mv.» (Aid for the calculation of extra tax on loans from individual taxpayers to companies etc. – in Norwegian only) This form is intended to help in the calculation of extra tax on loans from individual taxpayers to companies. The form is only available if you submit your tax return electronically. Persons submitting tax returns on paper must calculate the extra tax themselves, see the guidelines to item 3.1.3. RF-1061 ”Oppgave over realisasjon av aksjer mv.” (Statement concerning the realisation of shares etc. – in Norwegian only) RF-1147«Fradrag i norsk skatt betalt i utlandet (kreditfradrag)» (Deduction in Norwegian tax for tax paid abroad (credit deduction) for employees, pensioners and self-employed persons – in Norwegian only) and additional form RF-1149 If you have income that is taxed abroad and the tax agreement with the country in question uses the split model to avoid double taxation, the income must also be taxed in Norway. If you are claiming a deduction in your Norwegian tax for tax paid abroad, you must submit form RF-1147. If you have income from selfemployment that is taxed abroad you must also submit form RF-1149. See «International» at skatteetaten.no/utland RF-1150 Nedsettelse av inntektsskatt på lønn and pensjon” (Reduction in income tax on wages and pensions – in Norwegian only) If you are claiming a reduction of tax on wages or pension on the basis of the alternative distribution model, you must submit form RF-1150. RF-1231 ”Spesifikasjon av innskudd i utenlandsk bank mv. and BSU-sparing i annen EØS-stat” (Specification of deposits in foreign banks and BSU savings in another EEA state – in Norwegian only) Index: A Unit trusts • capital • dividend profit on sale • loss on sale • Item 4.1.4 Item 3.1.6 Item 3.1.9 Item 3.3.9 Apartment in jointly-owned property, Shares etc. • capital see housing Items 4.1.7, 4.1.8 Items 3.1.5, 3.1.7 • dividend • profit on sale etc. Items 3.1.8, 3.1.10 • loss on sale etc. Items 3.3.8, 3.3.10 Retirement pension • pensions 2.2.1 • special allowance Apartment in housing cooperative, Income from employment Item 3.5 see housing • pay Items 2.1.1, 2.4.1 • payments in kind Item 2.1.1 • other income from employment Unemployment Item 2.1.5 • unemployment benefit Item 2.1.1 Periods of work entailing stays away from home Item 3.2.7 Travel to/from work Item 3.2.8 Work clothing allowance Item 2.1.4 Inheritance Item 1.5.3 Rehabilitation benefit Item 2.1.1 Early-retirement pension (AFP) Item 2.2.2. B Bank deposits • in Norway • interest • capital Children Item 3.1.1 4.1.1 • children's pension Items 2.2.1, 2.2.2, 2.6.3 • pay Item 2.4.1 • special income allowance for young people Item 3.3.7 Child care in own home • income Travel expenses, home visits Item Cars Item 2.1.3 3.2.9 • travel to/from work Item 3.2.8 • travel, home visits Item 3.2.9 • use of car, see page 31 • benefit (company car)Item 2.1.1 • capital Item 4.2.5 • allowance Item 2.1.4 Housing • housing cooperatives • share of income Item 2.8.1 • share of capital 4.5.3 • share of tax value Item 4.3.1 Item 3.3.4 • share of costs • share of debt 4.8.2 • holiday home • income item 2.8.3 • capital Item 4.3.1 • profit on sale etc. post 2.8.4 • tax value of own homeItem 4.3.2 • income (accounts-based tax assessment) Item 2.8.2 • joint ownership, share of income Item 2.8.1 - share of capital 4.5.3 • joint ownership, share of costs Item 3.3.4 - share of debt 4.8.2 • loss on sale etc. Item 3.3.6 • loss (accounts-based tax assessment) Item 3.3.12 • letting (rent) Item 2.8.2 Young people's housing savings (BSU)page ?? Road tolls • see Travel to/from work Boats • sales value NOK 50,000 or more Item 4.2.4 • sales value less than NOK 50,000 Item 4.2.2 C Caravans • capital Item 4.2.6 D Childminders • child care deductionItem 3.2.10 • care in child's own home (income) Item 2.1.1 • care in childminder’s home (income) Item 2.1.3 Unemployment benefit Item 2.1.1 Subsistence allowance Item 2.1.4 E Supplementary benefit for spouse Item Detached house 2.2.4 • see housing Single parents • child care deductionItem 3.2.10 • tax class 2 page 25 Back payment of salary/pension Item 2.6.2 Surviving spouse's pensionItem 2.2.1 F Trade union dues Item 3.2.11 Actual expenses in employment Item 3.2.2 Child care in a private home Items 1.6.1, 2.1.3 Real property, see housing Ferry expenses see Travel to/from work?? Air travel, see Travel to/from work?? Fishermen • pay Item 2.1.1 • special allowance for fishermen, hunters etc. Item 3.2.14 House moving allowance Item 2.1.4 Child care deduction Item 3.2.10 Provisional disability pension • special allowance Item 3.5.2 Insurance Items 3.1.3/4.5.2, 3.1.6/4.6.2, 3.3.7 Dependents • class, See page 25 Continuation insurance Item 3.3.5 ?? Holiday homes see housing Pleasure boats • capital Items 4.2.2, 4.2.4 Private pension payments to retired farmers • outside agriculture • and forestry Item 3.3.3 • received Item 2.6.2 Maternity benefit Item 2.1.1 G Gifts/ donations • voluntary organisations etc.Item 3.3.7 • gifts from employer Item 2.1.1 • gifts received Item 1.5.3 • scientific research Item 3.3.7 Profits • sale of house, land etc.Item 2.8.4 • tax-free lottery winnings etc. Item 1.5.2 • taxable Item 3.1.8 Debts • debts in Norway 4.8.1 • interest in Norway Item 3.3.1 • debts abroad Item 4.8.3 • interest abroad Item 3.3.2 Surrender value • life insurance 4.5.2 Primary capital certificate, see shares etc. H Fees Item 2.1.1 Holiday cabin See holiday homes Craft work • and handicrafts Item 2.1.5 I Individual pension agreements (IPA) • deduction Item 3.3.5 4.5.1 • capital Home contents/ movable propertyItem 4.2 Introductory benefit Item 2.2.2. K Endowment insurance • yield from • surrender value Capital income/ interest income Item 3.1.4 Item 4.5.2 Item 2.1.4 Items 3.1/4.1 Cash etc. Item 4.1.2 Office expenses allowance Subsistence allowance Item 2.1.4 Board and lodging • extra expenses without overnight stay • extra expenses with overnight stay • surplus from subsistence allowance Item 3.2.2 Item 3.2.7 Item 2.1.4 L Apartments Tax value Annuities see housing Item 4.3 Items 2.2, 2.6 Life insurance • yield • surrender value • tax-free • taxable Pay Item 3.1.4 4.5.2 Item 1.5.2 Item 3.1.8 Lottery and betting winnings see income from employment M Extra expenses • business travel/periods of work Item 3.2.7 Minimum standard deduction Items 3.2.1, 3.2.4 3.2.5 and 3.2.6 Motor vehicles Item 4.2.5 N Payments in kind Item 2.1.1 Income from self-employment Item 2.7 Deficit on self-employment Item 3.2.19 O Bonds • interest Item 3.1.2 • capital 4.1.7, 4.1.8 • profits • losses Item 3.1.5 Item 3.3.8 Employment-related options • benefit from employerItem 2.1.1 Bond unit trusts • capital 4.1.5 • dividend 3.1.6 • profit on sale 3.1.9 • loss on sale 3.3.9 Transitional benefit Item 2.2.1 Surplus from expense • allowances Item 2.1.4 See childminders P Care of children Commuters • expenses, home visitsItem 3.2.9 • deduction for extra expenses for board and lodgingItem 3.2.7 • savings on household costsItem 2.1.4 • surplus from coverage of travel expenses Item 2.1.4 Pensions • pension supplement for spouse Item 2.2.4 Item 2.2 • paid in arrears • premium for pension scheme Item 3.2.12 • special allowance Item 3.5 • payment from National Insurance Item 2.2.1 • payment from othersItem 2.2.2. Premium fund (IPA) Item 4.5.1?? R Accounts-based tax assessment of housing see housing Rehabilitation benefit Travel allowance Travel Item 2.1.1 Item 2.1.4 • travel to/from work Item 3.2.8 • travel, home visits Item 3.2.9 • job-related travel Item 3.2.2 Interest • income Item 3.1.1, • abroad, Item 3.1.11 • on debts in Norway Item 3.3.1 • on debts abroad Item 3.3.2 Low-interest loans 3.1.2, 3.1.3. • income Item 2.1.1 • deduction Item 3.3.1 • debt 4.8.1 S Sale of house, land etc. • profit • loss Cohabitants Joint ownership Seafarers Item 2.8.4 Item 3.3.6 Item 1.3 see dwellings • income Item 2.1.2 • seafarers' allowance Item 3.2.13 Tax class (personal allowance) see topic ?? Nuisance allowance Item 2.1.4 ?? Scholarships Item 2.1.4 Director's fee Item 2.1.1 Benefits Item 2.2.2. Sickness expenses Item 3.5.4 Sick pay Items 2.1.1, 2.7.13?? Special allowances • age Item 3.5.1 • minor impairment of earning capacity • major sickness expensesItem 3.5.4 • disability Item 3.5.2 Special deduction from income Item 3.3.7 Item 3.5.3 T Loss on the sale of house, land etc. Phone allowance Cashing-up allowance Temporary disability benefit Item 3.3.6 Item 2.1.4 Item 2.1.4 • income Item 2.1.1 • special allowance Item 3.5.2 Financial contributions • research Occupational pensions Item 3.3.7 • deduction for premiumItem 3.2.12 • paid Item 2.2.2. Plots of land • capital • profits • losses Item 4.3.5 Item 2.8.4 Item 3.3.6 U Disability pension • income Item 2.2.1 • special allowance Item 3.5.2 Disability benefit, temporary • income Item 2.2.1 • special allowance Item 3.5.2 Maintenance payments (to former spouse) ?? • income • deduction Deficit Item 2.6.1 Item 3.3.3 • previous years' deficitItem 3.3.11 • deficit on self-employmentItem 3.2.19 • deficit for year on letting of real property Item 3.3.12 Unit • Link insurance Outstanding claims Item 3.1.4?? 4.1.6 • interest Item 3.1.2 • capital Expense allowances • surplus • deficit Abroad Item 2.1.4 Items 3.2.1, 3.2.2?? • share dividend Item 3.1.7 • shares, capital 4.6.2 • profits on shares Item 3.1.10 • bank deposits Item 4.1.9 • interest on bank depositsItem 3.1.11 • income from real property Item 2.8.5 • capital in real property 4.6.1 • general Item 1.5.6?? • other income Item 3.1.11 capital • 4.6.2 • pay Item 2.1.1 • interest on debt Item 3.3.2 • debts 4.8.3 V Currency gains Securities See shares Tools allowance Item 3.1.8?? and bonds?? Item 2.1.4 ?? • surplus What would you like to know more about? – Where to enquire: National insurance contributions (appeals) Local tax assessment office National insurance contributions (payment)) Local tax collection office Inheritance tax County tax collection office Confirmation of name change (individuals) Local tax assessment office Certificate of domicile Local tax assessment office Notice of change of address (individuals) Local tax assessment office Advance tax (calcualtion) Local tax assessment office Advance tax (payment) Local tax collection office Birth certificate Local tax assessment office Confirmation of personal identity number Local tax assessment office Initial notification of choice of name Local tax assessment office Certificate of tax paid on declared earnings Local tax assessment office Certificate of Pay and Tax Deducted Local tax collection office VAT (computation and appeals) County tax assessment office VAT (incoming and outgoing payments) County tax collection office VAT register County tax assessment office or Central Coordinating Register for Legal Entities Change of name (individuals) Local tax assessment office Underpaid tax (payments) Local tax collection office Tax return Local tax assessment office Overpaid tax (payment) Local tax collection office Tax certificate (VAT) County tax collection office Tax certificate (tax, national insurance contribution etc.) Local tax collection office Tax settlement notice Local tax collection office Tax deduction card Local tax assessment office Additional advance tax (payment) Local tax collection office Transcript of address information Local tax assessment office Tax assessment notice Local tax assessment office You wil find most of the information you need about tax at skatteetaten.no Published by The Directorate of Taxes January 2007