How spouses share income from a joint business

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Spouses, registered partners and spouse-equivalent partners can share income from a joint business between themselves.

Both spouses, etc. must have worked for the business during the income year. If the two spouses, etc. jointly own the business, the enterprise is considered to be a joint business. Businesses that are only owned by one of the spouses, etc. can also be considered as a joint enterprise for tax purposes.

Spouses, etc. must share income from a joint business according to their respective work inputs during the income year. In their overall assessment, spouses must take into account both the quality and the amount of their work. If spouses, etc. have contributed about the same amount of work to the joint business, it may be appropriate to share the income equally. However, if one spouse, etc. has only carried out supervised or menial tasks, he or she must not be allocated a higher proportion of the income than it would have cost the business to employ an external person to do the work. If the surplus is not so large that it gives both spouses, etc. unreasonable remuneration for their work input, the spouses, etc. can share the entire surplus according to their work input.

If spouses, etc. share income from a joint business, it is not necessary for both to submit an income statement as an attachment to their tax returns. It is sufficient for the main partner to submit RF-1175 "Income statement 1" or RF-1167 "Income statement 2" and RF-1224 "Personal income from sole proprietorship". Under item 0402 of the income statement, you must specify the division of the surplus. The spouse, etc. who does not submit an income statement and RF-1224 must enter the figures from these forms in their tax return. The spouse, etc. must enter their share of the surplus in their tax return under items 2.1.3, 2.7.1,2.7.2, 2.7.3, 2.7.4, 2.7.5 and/or 2.7.6. The same spouse, etc. must enter the positive personal income from item 1.33 of RF-1224 in their tax return under item 1.6.1.

The spouse, etc. must enter a positive amount in item 1.34 of RF-1224 in their tax return under item 1.6.2.The spouses, etc. must share interest expenses relating to a joint business in the same proportion as that used for the surplus in item 0402 of the income statement. If necessary, you must correct the interest which has been pre-completed in the tax return under item 3.3.1. You do this by entering the taxpayer's share of the interest expenses for each individual lender.

Similarly, the spouses must also share interest income, share dividends, etc. which have been posted in the accounts of a joint business in the same proportion as used for the surplus under item 0402 of the income statement.

It is not possible to enter business income in the electronic version of the "Tax return for wage earners and pensioners, etc.". For further help, see the guidance for item 2.7 in "Guidance for the items" concerning how to switch from "Tax return for wage earners and pensioners, etc." to "Tax return for self-employed persons, etc.".

If a personal self-employed person receives gross operating income during the year which does not exceed NOK 50,000 and also fulfils the other applicable requirements, the person concerned will be exempt from the obligation to submit an income statement. You can read about this in part 2 of "Start help for self-employed persons". The exemption does not apply to spouses, etc. who share income from a joint business between themselves. In such cases, the main partner must submit an income statement and RF-1224 as attachments to their tax return.

Married spouses and such may not share a deficit (loss) from a joint enterprise unless both are equally responsible.

The responsible proprietor of the enterprise is to enter the entire deficit amount in item 3.2.19 in his or her tax return. A spouse who is not the responsible proprietor, may not be allocated a proprotion of the deficit.

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