Do you live in Norway and own shares etc. in another Nordic country?
This applies to you who live in Norway and own shares in a company or units in a mutual fund in another Nordic country. This information only applies to income from shares and units in mutual funds.
There are special rules for shares and units in mutual funds within a Share savings account.
Dividend from shares and distributions from mutual funds
Taxation in the source country
Share dividends are taxable in the source country. Pursuant to the Nordic tax treaty, the tax rate is limited to 15 per cent. You can request a deduction from your Norwegian tax for the tax you have paid abroad (credit). The deduction may not exceed the Norwegian tax payable on the dividend.
The same applies to distributions from mutual funds when the distribution is taxed in the same way as share dividends in the other country.
Taxation in Norway
Dividend from a company in another Nordic country is taxable in Norway pursuant to the same rules that apply to dividend from a Norwegian company.
Only the part of the dividend that exceeds a fixed risk-free return on the opening value of your shares is taxable.
The risk-free return is calculated for each share owned on 31 December in the income year and determines how much of the dividend is tax-free. If the dividend exceeds the risk-free return, the excess amount will be multiplied by 1.44 and taxed at a rate of 22 per cent in 2019 and 2020 (effective tax rate 31.68 per cent). If the dividend is less than the risk-free return in a particular year, the unused risk-free return can be used to reduce the future taxable dividend and/or gain for subsequent years.
Distribution from a mutual fund in another Nordic country is taxed in the same way as distribution from a Norwegian mutual fund.
If you own foreign shares you must complete the form "Gain, loss, dividend and capital value of shares and other financial products" (RF-1159). The guidelines for completing the form are in RF-1072. The form must be submitted with your tax return. Both the form and guidelines can be downloaded from skatteetaten.no. The same applies if you own units in a foreign mutual fund and have not received a statement of your holdings from the Norwegian Registry of Securities or the investment management company.
If more than 15 per cent tax has been deducted from the dividend paid by a company resident in another Nordic country, you are entitled to have the excess tax refunded in the other country.
Profits on the sale of shares and units in mutual funds
Profits on the sale of shares in a company in another Nordic country are taxed in Norway pursuant to the same rules that apply to profits on shares in a Norwegian company. Profits on the sale of units in a mutual fund are taxed pursuant to the same rules that apply to profits on the sale of units in Norwegian mutual funds.
Any risk-free return not already deducted when calculating the taxable dividend/distribution, will be taken into account when calculating the taxable profit.
If you have been resident in another Nordic country, profits on the sale of shares may also be taxable there if the sale was made in the year in which you become resident in Norway pursuant to the Nordic tax treaty, or in a number of subsequent years. There are different rules in the Nordic countries regarding for how long profits on the sale of shares can be taxed after moving abroad. If you are taxed in another Nordic country after you have moved to Norway, you can request a deduction from your Norwegian tax for the tax you have paid abroad (credit). The deduction may not exceed the Norwegian tax payable on the profit.
Losses on the sale of shares in a company resident in another Nordic country are deductible pursuant to the same rules that apply to losses on the sale of shares in a Norwegian company.