Norway Moves to Curtail Debt Interest Deductions (1)

Norway is seeking feedback on a draft proposal to limit deductions for debt and debt interest for financial institutions with operations abroad.

Financial institutions would only be able to deduct debt and debt interest that is related to taxable income in Norway, according to a press release Thursday.

Under current rules, financial institutions can receive deductions corresponding to the ratio between assets in a foreign branch and their total assets.

• The proposal aims to protect Norway’s tax base against companies exploiting double-tax treaties to minimize their taxable income in Norway.
• It follows a Nov. 12, 2024, supreme ...