Distributing income, expenses and capital
Spouses, registered partners and spouse-equivalent cohabiting partners can decide how they wish to distribute certain income and deductions in their tax returns between themselves.
It is primarily capital incomes and capital expenses, such as interest, which spouses and partners can distribute freely, in addition to capital and debt. Other cohabiting partners who are not spouse-equivalent partners are assessed individually as regards their income and capital and cannot distribute income and deductions in the manner described here.
The distribution that is chosen will not normally affect the total tax payable by the couple, but it will affect which of them will be taxed on capital and income or receive a deduction for the expense concerned.
In cases where one partner has a low income, it may be advantageous for spouses etc. as a couple to distribute and transfer income and deductions so that neither of them has a lower net income than the personal allowance.
In the case of people who receive old-age pension or early retirement pension (AFP) where one of the spouses/spouse-equivalent partners has a low pension/income, the distribution of income, deductions and capital between them may affect their overall tax. Read more about the Tax rules for pensioners.
Spouses/spouse-equivalent partners wishing to distribute bank deposits, interest income, debt and interest on debt must remember to correct both their tax returns.
Example of the distribution of interest on debt
Kari and Per are married and have bought a house together. Kari is the main lender for the mortgage from the bank and the interest on debt of NOK 80,000 has been entered in her tax return. However, the spouses want to distribute the deduction for the interest in the ratio of 70 percent for Per and 30 percent for Kari. To distribute the interest on debt between the two of them, Kari must go to her tax return and correct it to NOK 24,000. Per must enter the interest on debt amount of NOK 56,000 in his tax return.
Incomes and expenses which cannot be distributed
Incomes and expenses linked to work, pension and commercial enterprise cannot be distributed freely and must be declared in the tax return of the spouse/spouse-equivalent partner who performed the work, is entitled to the pension or carried out the commercial enterprise.
The summary below shows the incomes and expenses in the tax return which it may be advantageous to distribute. It also refers to the incomes and expenses which cannot be distributed.
| Pay to children aged 12 years or under |
|
Non employment-related annuities to children aged 16 or under |
| Children's pension |
| Owner's share of income from share in a housing cooperative/jointly-owned housing property |
| Net income from the letting of real property etc. outside the context of a business |
| Taxable rental income from a holiday home which you have used |
| Taxable profit on the sale etc. of housing, land and other real property |
| Income from real property abroad |
| Interest income on bank deposits etc. (including children's deposits) |
| Other interest income |
| Interest on loans to companies subject to extra tax (RF-1070) |
| Taxable share dividends, etc. (RF-1088) |
| Taxable return on shares in unit trusts (including children's unit trusts) |
| Other taxable dividends |
| Taxable gains on the sale of shares etc. (RF-1088) |
| Taxable gains on the sale of units in securities funds |
| Gain, loss, dividend and capital value of shares and other financial products (RF-1159) |
|
Income from abroad |
|
Other income |
|
Profit from other financial products |
|
Taxable returns or customer dividends |
|
Interest on debt |
|
Interest on debt – abroad |
|
Benefits derived from surrendered property outside agriculture and forestry |
|
Share of costs in housing cooperatives (housing associations or limited liability housing companies) and in jointly owned housing properties |
|
Deductible losses on sale, etc. of real property |
|
Other deductions |
|
Loss on sale of shares, etc. (RF-1088) |
|
Losses on sale of shares in securities |
|
Gains, losses, dividends and wealth in the form of shares and other financial products (RF-1159) |
|
Deficit on letting of real property outside the context of a business |
All capital, including capital belonging to children who are assessed with their parents, can be distributed freely.
| Pay and equivalent benefits |
| Pensions, employment-related annuities etc. |
| Non-employment related disability annuities and life annuities |
| Taxable payments from employment-related and non employment-related annuities |
| Taxable severance pay and pension |
| Income from business or sickness benefit for self-employed persons |
| Return from capital insurance agreement |
| Payment of endowment insurance without a guaranteed yield |
| Endowment insurance with or without a guaranteed yield with a foreign company/financial institution |
|
Other income
|
| Minimum standard deduction from own income |
| Deficit, accounts-based assessed car Actual expenses |
| Premiums for sickness and accident insurance |
| Minimum standard deduction from supplementary benefit for spouses |
| Minimum standard deduction from children's income |
| Minimum standard deduction from children's pension |
| Extra expenses for board and lodging etc. in connection with stays away from the home |
| Petty expenses, seafarers |
| Deduction for travel to/from work – travel between the home and permanent workplace (travel to/from work) |
| Deduction for travel expenses for home visits |
| Trade union fees |
| Premiums for job-related pension schemes |
| Special allowance for seafarers |
| Special allowance for fishermen and hunters at sea |
| Special allowance for agriculture (RF-1177) |
| Special allowance for agriculture |
| Share of joint allowance for agriculture |
| Special allowance for reindeer husbandry (RF-1177) |
| Share of joint allowance for reindeer husbandry |
| Special allowance for slate production |
| Share of joint allowance linked to slate production |
| Premium for own supplementary national insurance for self-employed persons |
| Deficit other business (RF-1167, RF-1175, RF-1242) |
| Deficit from agriculture, horticulture, fur farming |
| Deficit from forestry |
| Deficit from primary industry |
| Deficit from fishing and hunting at sea |
| Deficit from slate production |
| Deficit from family day care centre in own home |
| Deficit from KS, ANS etc. which runs a family day care centre in own home |
| Deductible payments to individual pension schemes (IPS) |
|
Donations to scientific research, etc. |
|
Other deductions
|
| Carryforward losses from previous years |
| Share of deficits from previous years in connection with running of farmhouse |
| Special allowance for disability |
| Special allowance for slightly impaired earning capacity |
| Special allowance for single providers |