If you are a partner in a business assessed as a partnership, you cannot submit the tax return for wage earners and pensioners.
A business which is assessed as a partnership is an enterprise that carries on commercial activity at the expense and risk of two or more partners, where at least one of the partners has unlimited liability for the collective obligations of the enterprise. This applies to:
- limited liability companies with joint and several liability (ANS)
- limited liability companies with pro rata liability (DA)
- internal partnerships
- limited partnerships (KS)
- shipping partners (PR)
- equivalent foreign companies which carry on activity which is taxable to Norway
Joint owners are also considered to be a business assessed as a partnership if they carry on activity at the joint expense and risk of the owners.
Type of tax return
The Norwegian Tax Administration has sent the tax return for self-employed persons to most personal partners in KS, ANS, etc. If you have received the tax return for wage earners and pensioners, the Norwegian Tax Administration will not have previously registered that you are a partner in a business assessed as a partnership.
What do I have to submit as a partner?
As a partner, you must submit RF-1221 “Deltakerens melding over egen inntekt og formue i selskap med deltakerfastsetting” (Partner statement of income and assets in a business assessed as partnership - in Norwegian only) as an attachment to your tax return. You enter many of the figures in the partner return (see below) in the tax return.
The business must submit RF-1215 Selskapsmelding, næringsoppgave mv. (Company tax return, income statement, etc. - in Norwegian only) to the Norwegian Tax Administration. These forms are a sub-specification of the information that the business reports concerning your share in RF-1233 Selskapets melding over deltakerens inntekt og formue i selskap med deltakerfastsetting (The business’s statement of partner income and assets in business assessed as a partnership – in Norwegian only). The business must also send a copy of RF-1233 to you as a partner. You will not normally need to submit a copy of RF-1215, RF-1233 or an income statement, etc. as an attachment to your tax return, but you must check the items that have been completed by the business.
If you are a partner in a foreign business assessed as a partnership, you must submit the tax return for self-employed persons, and you will be personally responsible for ensuring that form RF-1215 and mandatory attachments are submitted to the Norwegian Tax Administration by the relevant deadline.
Norwegian partners in foreign businesses assessed as a partnership are obliged to jointly make submissions on behalf of the businesses. The same applies to Norwegian taxpayers who are taxed either alone or jointly with others under Sections 10-60 to 10-68 of the Tax Act (the NOKUS rules).
Turnover statement for NOKUS
When does the tax return have to be submitted by?
As a partner, you must submit a tax return. You must submit your tax return electronically and have until 31 May to do so.
You can apply for deferment of the deadline if it would be very difficult for you to submit your tax return by this deadline, e.g. because the business is unable to send you form RF-1233 before the deadline.
Partners in a business assessed as a partnership have the same submission deadline as their SDF. If the deadline for an SDF is deferred beyond the end of May, the deadline for the partner will be deferred by the same length of time. It is therefore not necessary for partners to apply for deferment if the business has already done so.
How do I fill in the tax return and the partner return?
When you have received a copy of form RF-1233, you can fill in the tax return.
You should submit form RF-1221 as an attachment to the tax return.
As a partner, you are responsible for providing accurate and complete information in RF-1221. You will find the amounts you need to enter in the return in your copy of RF-1233, but you must check the items that the business has completed.
How to submit the tax return for self-employed persons electronically
- Log in.
- The first time you open the tax return, you will be asked whether you wish to submit the tax return with or without RF-1175 Income statement 1. If you are only a partner in a business assessed as a partnership and you do not have your own business, insert a cross for “Uten næringsoppgave: jeg er deltaker i KS, ANS mv. eller har inntekt felles bedrift fordelt fra ektefelle” (Without income statement: I am a partner in a KS, ANS, etc. or have income from a joint business allocated from my spouse” - in Norwegian only).
- At the top of the screen, you will see the sheet tab marked “Vedlegg” (Attachment). If you click on this, you can create form RF-1221 “Deltakerens melding over egen inntekt og formue i selskap med deltakerfastsetting” as a new attachment to the tax return.
- Click on “Legg til” (Add) to the right of the partner return.
- When you have completed all the relevant items in the partner return, click on “Lagre/Gå tilbake” (Save/back) at the bottom of the form. Another screen will then appear which shows the amounts that the service will transfer from the partner return to the tax return for you.
Instead of point 4, you can also open the partner return from one of the items in the tax return, in which amounts are completed from the partner return.
If you have received the tax return for wage earners and pensioners, etc., you cannot submit this. Instead, you must switch to using the electronic tax return for self-employed persons.
You must complete the tax return with any relevant amounts from these items in the partner return:
- 1101 Share of net wealth
- 1140 Total general income (including any work remuneration)
- 1143 Addition to general income for personal partners
- 1145 Taxable gain/deductible loss upon realisation of shares.
- 1160 Work remuneration/share of the proceeds from fishing or family day care centre in the partner’s home
- 1162 Work remuneration from other business.
In the partner return, you will see which items in the tax return you need to enter amounts in. The item numbers you need to fill in will depend on the type of activity that the business carries on.
In the tax return for self-employed persons, you will find items which are relevant to partners in businesses assessed as a partnership. Use a minus sign if you transfer a negative number from the partner return.
If you submit the tax return for wage earners and pensioners on paper, you must create new items under “Beløp som ikke er forhåndsutfylt, føres her” (Enter amounts which are not pre-completed here). You should enter the figures from the partner return in these items.
Where will I find the figures I need to enter in RF-1221 “Deltakerens melding over egen inntekt og formue i selskap med deltakerfastsetting” (Partner statement of income and assets in business assessed as partnership - in Norwegian only).
As a partner, you are responsible for providing accurate and complete information in RF-1221. You will find the figures you need to enter in the form in the copy of RF-1223 which the business has sent you.
The item numbers to the left of the amount fields in RF-1221 generally correspond to the item numbers to the left of those in RF-1233, where you need to obtain the relevant amounts from. For example, under item 1101 in form RF-1233, you will find the net wealth that you need to enter under item 1101 of form RF-1221.
If you do not agree with the amounts that the business has entered in form RF-1233, you must explain the discrepancies in a separate attachment to the tax return.
Are you sharing the amounts in the partner return with your spouse, registered partner or spouse-equivalent cohabitant?
If both spouses are active in the same business, they can opt to allocate assets and income between them. This also applies to registered partners and spouse-equivalent cohabitants. The spouse, etc. who receives a copy of form RF-1233 must submit RF-1221 as an attachment to their tax return. The other spouse, etc. does not need to submit RF-1221.
Form RF-1233 contains no specification of how net wealth and general income should be allocated between the spouses, etc. You specify the allocation in the items under the heading “Felt dersom du fordeler nettoformue og inntekt med ektefelle” (“Fields if you share net wealth and income with a spouse”). Both spouses, etc. must enter their share of the amounts in the tax return.
The spouse, etc. who does not submit form RF-1221 must manually transfer their share of the amounts to the electronic “Tax return for self-employed persons, etc.”. If this applies to you, you must do the following:
- Enter the positive net wealth from item 1101 of form RF-1221 in item 4.5.4 of the tax return.
- Enter the positive general income from item 1140 of form RF-1221 in item 2.1.3, 2.7.7 or 2.7.8 of the tax return.
- Enter the additions to general income from item 1143 of form RF-1221 in item 2.7.10 or 2.7.11 of the tax return.
- Enter the positive number (gain) from item 1145 of form RF-1221 in item 3.1.12 of the tax return. You should enter any negative amount (loss) in item 3.3.7.
- Work remuneration from item 1160 of form RF-1221 in item 1.7.1 of the tax return, while work remuneration from item 1162 of RF-1221 should be entered in item 1.7.4 of the tax return. These figures are also included in the total which you enter under item 2.1.3, 2.7.7 or 2.7.8 of the tax return (see above).
With effect from the 2015 income year, spouses who run a business together can opt to register their business as a business assessed as a partnership with each of the spouses as independent partners; see Section 10-48-1 of the Ministry of Finance's Regulations pursuant to the Tax Act (FSFIN); see Section 10-48 of the Tax Act. This option also applies to shares in a business assessed as a partnership in which there are other partners.
Are you a partner in a business in the forestry or reindeer husbandry industry?
Specific rules apply to income from forestry and reindeer husbandry. The taxpayer will generally be taxed on their average income from forestry and/or reindeer husbandry in recent years. The average assessment entails a correction in item 1117 and, where applicable, item 1126 of form RF-1233 Selskapets melding over deltakerens inntekt og formue i selskap med deltakerfastsetting (The business’s statement of partner income and assets in a business assessed as a partnership – in Norwegian only).
With effect from the 2015 income year, the provision concerning average assessment for forestry and reindeer husbandry has been amended to only apply to such activity that is carried on in the form of a sole proprietorship. (Section 14-81 and Section 14-82 of the Tax Act)
Personal partners in a business with such activity which was subject to average assessment in accordance with the rules that applied up to and including the 2014 income year may opt to continue with average assessment up to and including the 2019 income year.
In the guidance for RF-1220 Deltakerinntekt fra skogbruk og reindrift (Partner income from forestry and reindeer husbandry - in Norwegian only), you can read about the rules that apply to the discontinuation of average assessment for partners in businesses.
The amounts under items 1117a and 1127a of form RF-1233 are specified in form RF-1220. The business submits this statement. Partners do not therefore need to submit form RF-1220.
The average assessment will be terminated if the business ceases trading or if you dispose of your share. In some cases, this will trigger liquidation assessment.
Find out more about average assessment in the Tax-ABC. See the topics “Reindeer husbandry” and “Forestry”.
For partners who submit their own income statement
You do not need to submit form RF-1175 Income statement 1 or any other income statement as an attachment to the tax return if you do not run any other business except as a partner in a business assessed as a partnership. In a few cases, extensive activity linked to owning, purchasing and selling shares in businesses assessed as a partnership, shares and other securities can in itself be considered to be commercial activity.
For partners claiming the agricultural allowance
Only personal partners who are claiming the agricultural allowance should complete items 1155 and 1156 in form RF-1221 Deltakerens melding over egen inntekt og formue i selskap med deltakerfastsetting (Partner statement of income and assets in business assessed as partnership - in Norwegian only).
Taxpayers can claim the agricultural allowance against positive business income from agriculture, horticulture, fur farming and beekeeping. In order to claim the allowance, taxpayers must generally have lived in the operating unit for more than half of the income year. Irrespective of the requirement concerning period of residence, the agricultural allowance will be granted to taxpayers who carry on beekeeping or fur farming if the other conditions are met. In special cases linked to a generational change, where the younger generation has taken over the farm, dispensation may be granted from the requirement concerning residence period. Tenants who do not live on the farm may also be granted dispensation from the residential requirement. In all cases, taxpayers who claim the agricultural allowance must live within a reasonable distance of the operating unit. If the distance does not exceed 20 kilometres, you can assume that the taxpayer lives within a reasonable distance of the operating unit.
The agricultural allowance is linked to the operating unit. If the operating unit consists of several farms, only one allowance can be claimed.
If some form of joint operation takes place between users who each have their own operating unit, each individual farmer can claim the agricultural allowance if the conditions are otherwise met. In such cases, each partner will calculate the agricultural allowance with their own individual maximum limit (see below) for agricultural income. Income from the joint operation is also included in the basis on which the agricultural allowance is calculated. In such cases, the income must be entered under 1155 of form RF-1221 based on the amount that is shown under item 1155 of RF-1233.
If a number of taxpayers run an agricultural or horticultural business from the same operating unit and meet the requirements for the agricultural allowance, the farmers must share the agricultural allowance for the operating unit within the maximum limit referred to below. In such cases, the partner must also complete item 1155 of form RF-1221 based on the amount shown under item 1155 of RF-1233.
If the partner submits RF-1177 “Landbruk” (Agriculture - in Norwegian only), they must transfer the difference between items 1155 and 1156 in form RF-1221 to item 436 of form RF-1177.
If the partner does not submit their own income statement, they must calculate the agricultural allowance based on item 1155 of form RF-1221 and enter the deduction under item 3.2.15 of the tax return. The deduction amounts to NOK 63,500 plus 38 percent of the income which exceeds NOK 63,500, up to a maximum deduction of NOK 166,400 per operating unit. The deductions can only reduce the income from these enterprises down to zero. For example, if the income from such activity is NOK 14,000, the deduction will be NOK 14,000.