Coronavirus - important information from the Tax Administration

Accounting, bookkeeping and audit obligations - foreign limited companies

Accounting and bookkeeping obligations

Foreign companies and other businesses operating in Norway or on the continental shelf are normally subject to the accounting and bookkeeping obligations.

There are exemptions regarding certain aspects of the accounting obligation. For example, foreign companies and other businesses that are temporarily operating in Norway or on the continental shelf and which have a turnover of less than NOK 5 million are exempt. Chapters 3 to 7 of the Accounting Act don't apply to these entities.

Businesses that are subject to this accounting obligation must prepare annual financial statements and an annual report for each financial year. This means that all transactions of significance to the business' assets, liabilities, revenues and costs must be entered in an accounting system.

Companies and other businesses with limited tax liability to Norway and have tax municipality 2312, are also obliged to prepare tax accounts. These tax accounts form the basis for completion of form RF-1045 - Extract of Accounts, which must be submitted as an attachment to the tax return.

For projects within the construction and engineering sector and the shipyard sector with a value of NOK 300,000 or more, additional project accounts must also be prepared.

Audit obligation

Foreign companies and other businesses that carry out or participate in business activities in Norway or on the Norwegian continental shelf and that are liable for tax in Norway are subject to the audit obligation with effect from the year after that in which their operating revenues exceed NOK 5 million.