Do you own shares in giant companies like Apple or Coca-Cola in the US? Then you may have noticed that your dividend was a little smaller than you had expected. This is due to withholding tax - a tax deducted directly in the country where the company is based.
"Nothing is hidden that will not be revealed."
— Florence Scovel Shinn
Even though the tax is deducted abroad before you even see the money, nothing is hidden from the Norwegian tax authorities. Fortunately, Norway has tax treaties with most countries, so the withholding tax is often limited to 15 percent.
Avoid double taxation
Important about ASK: In a Share Savings Account (ASK), you can have trouble claiming deductions for withholding tax. Therefore, many recommend using a regular trading account (AF) or Investment Account Zero for American stocks!
How it works
- The country where the company is based automatically deducts for example 15 percent withholding tax.
- You can claim a deduction for this withholding tax on your Norwegian tax return, so you do not pay double.
- Your online broker often handles this paperwork automatically for you.