Tax regulations for welfare loans

Income tax

• You do not pay income tax for the advantage of an interest-free loan if the repayment period is one year or less and the amount borrowed is less than 3/5 of the Norwegian Social Insurance Scheme\s basic amount (G).
• If the loan exceeds 3/5 of the basic amount, you will be taxed for the benefit of not paying interest on the entire loan.
• Loans of less than 3/5 of the basic amount are taxable in their entirety if their repayment periods exceed one year.
• For taxable loans, the salary system calculates a tax deduction automatically based on the size of the loan and the standard taxation rate for an interest-free loan from an employer.

Wealth tax

• For the purposes of wealth taxes, the loan balance as of 31 December can be deducted from your assets.
• The balance will be included on your last payslip in December, and must be itemised as a correction on your tax return.