Hiring out of vehicles
When you also use your car privately and your rental income does not exceed NOK 10,000 during the year, you will not have to pay any tax on the rental payments you receive. The same will apply if you hire out the vehicle either privately or through an agent (an app or online service such as nabobil.no, gomore.com, etc.).
If the rental income exceeds NOK 10,000, it must be declared in the tax return.
You do not need to pay tax if you only carry passengers with the intention of covering your expenses (petrol expenses, etc.). Using a vehicle in this way will not generally be considered to be commercial activity.
You will have to pay tax if you receive tips for the journey which in reality constitute payment for the trip. The income will then be taxable. If you carry passengers, consideration must be given to whether or not the activity constitutes taxable activity. As regards tax, the question is whether the carrying of passengers constitutes taxable activity or a tax-free hobby. See the Tax ABC for more information. If you are unsure, you can always contact us via email.
To determine when an activity is a hobby or commercial activity, a specific assessment must be carried out to determine whether the activity:
• is carried on at the business’s own expense and risk
• has a certain scope
• is likely to generate a surplus over time
• is aimed at having a particular duration.
If you are unsure, contact your local tax office or call us on telephone 800 80 000.
Depreciation and maintenance
QUESTION: What are the rules concerning depreciation when car sharing constitutes a business? Can I depreciate the value of the car against tax in full or in part?
ANSWER: In business, the car must be capitalised and depreciated (not a direct deduction). The rate for depreciation is 20% per year, but initial depreciation of 30% may be implemented for the first year.
QUESTION: What about expenses for maintenance and decreases in value?
ANSWER: Expenses for maintenance can be deducted, as can fuel, oil and insurance, for example. Decreases in value are governed by the rules concerning depreciation. If the vehicle is also used privately, a benefit for private use must be calculated which will reduce the deduction (“reversal for private use”). Deductions will only be relevant if the income is taxable.
What is the situation if car sharing becomes my main source of income?
QUESTION: If I decide to make Uber driving (or other similar services) my main source of income, what factors do I need to include in my accounts from a tax perspective?
ANSWER: If you decide to make Uber driving your main business, you must follow the general tax and reporting rules that apply to businesses. The general rule will then be that the income from the driving is taxable from the first krone, and the costs associated with the driving will also be deductible. You will be entitled to deductions for fuel, insurance, annual motor vehicle tax, etc. under the normal rules. If you also use the vehicle privately, the deduction will be reduced.
You must submit the tax return for businesses. You will not have to submit an income statement if your turnover is less than NOK 50,000.
Check what type of tax return for businesses is relevant for you:
I am self-employed - Can I use the Business Tax Return?