Do I have to submit an income statement as an attachment to the tax return?

Can I sell if I want to submit an income statement or not?
As a self-employed person, you will generally have to submit an income statement or the Business Tax Return. Some small sole proprietorships with gross operating revenues of NOK 50,000 or less are exempt from the requirement to submit an income statement

You will not generally need to submit an income statement or Business Tax Return if you are a partner in a business assessed as a partnership; see the separate question below.

How do I share income from self-employment with my spouse if I do not submit an income statement?
If you ask for business income to be shared with your spouse, registered partner or spouse-equivalent cohabitant, you must submit an income statement.

I own a forestry business with gross operating revenues which do not exceed NOK 50,000. Do I have to submit an income statement?
If you run a forestry business as a self-employed person and the net income is included in an average tax assessment, you must submit an income statement.

I started a sole proprietorship last year. Do I have to submit an income statement or Business Tax Return?
If you run a taxable enterprise, you must submit an income statement or Business Tax Return or use the fields in the tax return for small sole proprietorships with gross operating revenues of NOK 50,000 or less. You will be considered to run a taxable enterprise if you meet all the following conditions:

  • You carry on the activity at your own risk and expense
  • You intend to carry on the activity over a reasonable period of time
  • Your activity has a certain scope
  • Your activity is likely to generate a surplus over time.

You must specifically assess whether your activity meets the conditions. Read about how to distinguish between an enterprise and a tax-free hobby.

People who start a sole proprietorship do not always fulfil the conditions for the first few years after they have started their business. During the first year you are assessed for taxable commercial activity, you can have one of up to five previous years approved as the start-up year for your enterprise. In RF-1298 Oppstart av virksomhet – bilagsoversikt (Starting a business – summary of attachments - in Norwegian only), you can specify income and costs which you had during the years before you submitted an income statement for the first time. In this case, you can form submit RF-1298 as an attachment to the tax return during the first year in which you submit an income statement or use the fields in the tax return for small sole proprietorships with gross operating revenues of NOK 50,000 or less. The Norwegian Tax Administration will therefore consider amending your tax assessments for previous years in order to take account of your incomes and costs during the start-up years. 

My business was wound up in 2015. Do I have to submit an income statement as an attachment to my tax return for 2016?
You do not need to submit an income statement for 2016 if the commercial activity in the sole proprietorship ceased and all assets, rights and obligations which the enterprise owned were sold, settled, withdrawn for private use or reassigned to other income-generating use during 2015. Whether or not the commercial activity has ceased will depend on an overall assessment. In this context, consideration will be given to:

  • the level of activity that you and other people carry out within the business
  • the business’s gross revenues
  • whether the fixed assets have been sold, settled, withdrawn for private use, or reassigned to other income-generating use

The commercial activity will not be considered to have ceased if the main practitioner stops taking an active part in the enterprise, but still owns or participates in the commercial activity.

 

In 2015, I earned royalties for intellectual property which I created myself. Where should I enter this income?
If you are a self-employed person, you will generally have to submit income statement 1 (RF-1075) or the Business Tax Return. You should enter royalties under item 3900 “Other operations-related income”.

If you have received the tax return for wage earners and pensions, you must check that the royalties have been pre-completed under items 1.6.2 and 2.7.6. If not all royalties have been pre-completed, you must correct the pre-completed amounts. If you have incurred expenses relating to the business income, you must also switch tax return if you submit electronically. If the tax return is pre-completed with the correct business income under items 1.6.2 and 2.7.6, you do not need to switch tax return or submit an income statement.

If you are self-employed and have gross operating revenues of NOK 50,000 or less, you may, subject to certain conditions, be exempt from the obligation to submit an income statement. If you submit the tax return for self-employed persons, you must enter the royalties together with other operating revenues under the field entitled “Total operating revenues”.

In 2016, I earned royalties for intellectual property to which I have acquired the copyright. Do I have to enter the income in the income statement?
You do not need to enter the income in the income statement or the Business Tax Return unless administering the rights involves extensive activity. You should normally enter such income in the tax return under item 3.1.12 “Other income”.

Payments to self-employed persons must be reported in a new way with effect from the 2015 income year, commencing in January 2016.

I invest in securities. Do I have to submit an income statement or the Business Tax Return?
Managing your own securities is not considered to be a business, unless it involves extensive activity. This will be based on a specific assessment of your case. In the assessment, emphasis will be placed on numerous factors, including whether your trading of shares and other securities is systematic and long-term in nature, the number of transactions you make and the total amount that you trade. It is also of importance whether the purpose of your activity is to achieve short-term gains, in contrast to passive investment based on a long-term objective.

On our website, you can read two binding advance statements which the Norwegian Tax Administration has provided concerning how commercial activity should be distinguished from other management of securities in practice: 

If you do not run a business, you do not need to submit an income statement and personal income form.

I have received a copy of the form The business’s statement of partner income and assets in a business assessed as a partnership (RF-1233)? Do I have to submit an income statement as an attachment to my tax return for self-employed persons?
Personal taxpayers who are partners in an ANS or other business assessed as a partnership must submit the form Partner statement of assets and income in business assessed as a partnership (RF-1221). As a partner, you will not generally have to submit an income statement. You must submit an income statement and personal income form if your activity aimed at managing company shares and/or other owner interests is so extensive that it is considered to be a business in itself, or you run another form of sole proprietorship.

The first time you open the tax return for self-employed persons electronically, you will be asked whether you wish to submit the tax return either with or without an income statement, or whether you wish to use the Business Tax Return. What form of submission should I choose for my business?

I share income from a joint enterprise with my spouse, registered partner or spouse-equivalent cohabitant. Do we both have to submit an income statement as an attachment to the tax return for self-employed persons?
No, it is sufficient for the main practitioner of the business to submit an income statement and form RF-1224 Personal income from sole proprietorships or the Business Tax Return. See also the article concerning how spouses etc. share income from joint enterprise.