Credit deduction

Credit deductions can be claimed by companies that are considered tax-resident in Norway according to Norwegian law and tax treaty.

If the company has income or assets abroad - and are taxed both in Norway and abroad, a deduction can be claimed in Norwegian equalized tax for the tax part paid abroad.

The credit deduction is limited to the lowest of;

• The calculated Norwegian tax on the total foreign income and/or foreign assets

• The amount that is actually paid in tax abroad in the same income year as the income/wealth is taxable in Norway

Credit deductions are distributed among the following categories;

• Income from NOKUS/low tax countries

• Other foreign income

• Other - including deductions in Norwegian tax when taxation of dividends etc. from foreign subsidiaries

A separate tab has been created for each of these categories in the system.

In the tax return, information must be filled in that shows that the company is entitled to a credit deduction. This is done in Information and tax -Information - Credit deductions.

See Items, fields and topics in the new tax return for businesses for more information.