Fishing with shares of catches and seafarers’ wages
When you have income from both shares of catches and seafarers’ wages (salary), you must distribute your expenses between the two types of income to get the correct deductions.
Does this apply to me?
This applies to you if you're fishing or a crew member on a fishing vessel and receive both shares of catches (business income) and seafarers' wages (salary/employment income).
What you need to do
- Remember to check your tax deduction card. You must enter the seafarers' wages as salary income. Shares of catches must be specified under business (under “Income and expenses from shares of catches relating to fishing and hunting at sea”).
- Check which deductions you're entitled to.
- Keep vouchers and other documents proving the expenses for which you’re claiming a deduction.
- Check that the pre-filled tax return includes the deductions you're entitled to and that the amounts are correct.
- Check that the income from shares of catches and seafarers’ wages is correctly distributed in the tax return so that the fishermen's allowance and minimum standard deduction is correct.
- If you find errors, you can change the information in your tax return .
Fishermen's allowance
If fishing on the coast or the sea has been your main type of work for at least 130 days in the year, you're entitled to a fishermen's allowance (special allowance for fishermen and hunters).
The fishermen's allowance is 30 percent of your total income from seafarers' wages. The maximum deduction is NOK 154,000.
The fishermen's allowance is automatically calculated, but you must check that the operating time (number of workdays) is correct, and that income and expenses have been entered with the correct amounts.
The 130 days of work do not need to be in a consecutive period. If you work less than 130 days on board due to starting or quitting, or unforeseen interruptions in the fishing activity, you may still be entitled to the fishermen's allowance.
When you have started or quit during the income year
You're entitled to the fishermen's allowance if you have worked less than 130 days and:
- start working as a fisherman and it’s likely that you will fulfil the requirement the following year
or - quit working as a fisherman during the income year and have fulfilled the requirement in previous years
When you work as both a fisherman and seafarer
If you work partially as a fisherman and partially as a seafarer, it is enough to work a total of 130 days during the year. You must check that the total operating time (number of workdays) is correct in your tax return.
The fishermen's allowance is calculated using your total income from fishing as a basis. Sickness benefits and holiday pay from work on the fishing vessel is also included in the calculation basis.
Income from work onshore is generally not included in the calculation of the allowance (it’s entered as onshore income).
If you have income from shares of catches as a landman, for example, preparing lines, this must still be included in the calculation of the fishermen’s allowance.
You’re a landman if you belong to the permanent crew and participate on board the fishing vessel in the usual way with the rest of the crew outside of the line-fishing season. You must also be on board and participate in fishing more than you work on land.
Income from shares of catches of seaweed and kelp must not be included.
Expenses you had that are related to the fishing is deducted from the calculation basis, however, the following expenses do not reduce the calculation basis:
- the minimum standard deduction
- expences for fishermen’s oilskins etc.
- travel expenses to/from a fishing vessel
- extra expenses in connection with work-related stays away from home
- interest expenses
- expenses for national insurance premiums
If you're entitled to both the seafarers' allowance (special deduction for seafarers) and the fishermen's allowance in the same income year and these exceed the maximum of NOK 154,000, the fishermen's allowance is reduced. This is calculated automatically in your tax return.
Example:
Jens earns NOK 300,000 per year, which entitles him to a seafarers' allowance, and NOK 250,000 per year as seafarers' wages from a fishing vessel, which entitles him to a fishermen's allowance. Jens has no expenses.
Since Jens is entitled to seafarer's allowance, this will be calculated first. The seafarers' allowance is 30 percent of the income and is limited to NOK 83,000. 30 percent of the income of NOK 300,000 as a seafarer is NOK 90,000. Jens will therefore only get a seafarer's allowance of NOK 83,000.
Jens will then get the fishermen's allowance in his seafarer's wages from fishing. 30 percent of the income of NOK 250,000 is NOK 75,000.
The total deduction cannot exceed NOK 154,000. Since Jens gets a seafarer's allowance of NOK 83,000, he can get a maximum fishermen's allowance of NOK 71,000 (154,000 - 83,000 = 71,000)
Minimum standard deduction
You will automatically receive a minimum standard deduction that is deducted from your seafarer's wages. The minimum standard deduction is in addition to the fishermen's allowance.
The minimum standard deduction is meant to cover your actual expenses related to the seafarer's wages, for example, expenses for work clothes.
If your actual expenses related to your seafarer's wages exceed your calculated minimum standard deduction, you can enter a deduction for these instead.
What to do if you
Board
If you have had expenses for food that was not covered by shared meals aboard the vessel, you can deduct these expenses.
If you participate in fisheries where you spend the night at home and cannot prove your expenses, you can use the applicable rate of NOK 106 per day.
You must distribute expenses for food between the income from shares of catches and the income from seafarers’ wages.
Example:
You have NOK 300,000 in income from shares of catches and NOK 200,000 in income from seafarers’ wages. The total income is NOK 500,000. The income is distributed as follows:
Income from shares of catches:
NOK 300,000 of the total income of NOK 500,000 is 60 percent.
Income from seafarers’ wages:
NOK 200,000 of the total income of NOK 500,000 is 40 percent.
You’ve had expenses for food of NOK 6,000.
- 60 percent of this is related to the income from sales of catches.
- 60 percent of NOK 6,000 is NOK 3,600.
- 40 percent of this is related to the income from seafarers’ wages.
- 40 percent of NOK 6,000 is NOK 2,400.
Lodging
If you have expenses for lodging because you must spend the night away from home or aboard the fishing vessel in connection with a fishing trip or travels to/from a fishing trip, you can in some cases claim a deduction for the expenses. See the rates for board and lodging.
Remuneration and reimbursement of expenses for lodging
If the owner of the vessel covers your expenses for lodging on a fishing trip where you only receive seafarers' wages, this coverage is not considered salary income. In such cases, you cannot claim a deduction for these expenses.
If the owner of the vessel covers your proven expenses for lodging on a fishing trip where you only receive seafarers' wages, you can claim a deduction for these expenses. However, the covered expenses are still taxable income.
If the owner of the vessel covers your proven expenses for lodging on a fishing trip where you receive income from both shares of catches and seafarers' wages, you can only claim a deduction for the share that’s related to the income from shares of catches.
You may be entitled to a deduction for transportation/travel expenses.
How much you can deduct depends on if you regularly travel to/from the fishing vessel or not.
You could be entitled to a deduction for transport/travel expenses if:
- you travel from your home or a lodging to a fishing vessel that is in a fixed place for a continuous period of more than 2 weeks.
and - you do not spend the night aboard the fishing vessel
See rates for the travel deduction
You get a distance-based deduction instead of a deduction for actual transportation expenses. This means that the deduction is calculated based on the distance you travel. The travel distance between your home or lodging and the fishing vessel must be at least 2.5 kilometres each way.
There are no requirements regarding having incurred expenses for transportation or how you travel to and from the fishing vessel.
In addition to the distance-based deduction, you may also be entitled to a deduction for road toll or ferry expenses.
Calculate your deduction for travel
Remuneration and reimbursements for work travel
If the owner of the vessel covers your expenses for work travel, the coverage is considered salary or business income.
You can still claim a deduction for travel expenses pursuant to the rules for work travel.
The coverage is considered income, but you do not lose the right to claim the distance-based deduction.
If your travel to/from a fishing vessel is not in accordance with the rules on work travel in the paragraph above, you’ll have different deduction entitlements depending on whether you’re going to receive income only from seafarers’ wages or only from shares of catches on a fishing trip.
- If you only receive seafarers’ wages on a fishing trip, transport to/from the fishing vessel will be considered business travel and the expenses are covered by the minimum standard deduction.
- If you only receive shares of catches on a fishing trip, transport to/from the fishing vessel will be considered business travel and you’ll be entitled to a deduction for your actual transport expenses.
For transport to/from a fishing vessel where you receive both shares of catches and seafarers’ wages from fishing, you must distribute the transport expenses between the income from shares of catches and the income from seafarers’ wages. You can claim a deduction for the part of the transport expenses that’s related to the income from shares of catches.
Example:
You have NOK 112,000 in income from shares of catches and NOK 28,000 in income from seafarers’ wages. Your total income is NOK 140,000.
The income is distributed as follows:
Income from shares of catches:
NOK 112,000 of the total income of NOK 140,000 is 80 percent.
Income from seafarers’ wages:
NOK 28,000 of the total income of NOK 140,000 is 20 percent.
You’ve had expenses for transport of NOK 10,000.
80 percent of this is related to the income from shares of catches.
80 percent of the income of NOK 10,000 is NOK 8,000.
20 percent of this is related to the income from seafarers’ wages.
20 percent of the income of NOK 10,000 is NOK 2,000.
Remuneration and reimbursements for business travel
If the owner of the vessel covers your expenses for business travel, you will not be entitled to a special deduction for these expenses, neither on shares of catches nor on seafarers’ wages. For the income from seafarers’ wages, this is included in the minimum standard deduction.
If the amount the owner of the fishing vessel covers is higher than your actual expenses, the excess is considered income.
Example:
If you have expenses of NOK 1,000 and your employer gives you NOK 2,000 to cover the expenses, you have NOK 1,000 in excess that you must pay tax on as salary.
If you also have income from shares of catches on this fishing trip, you must distribute the excess between seafarers’ wages and business income in the same way as these incomes.
Remuneration and reimbursements for work-related travel
The expense coverage will be considered business income if you’re only receiving shares of catches on a fishing trip. You may still claim a deduction for your actual expenses.
If you receive shares of catches, you’re entitled to a separate deduction for expenses for fishermen’s oilskins (outer clothes, including gloves and jackboots) and survival suit.
Expenses for work clothes linked to the income from seafarers’ wages are covered by the minimum standard deduction.
Fishermen's oilskins
You must calculate and enter the share of the expenses that’s allocated to the income from shares of catches.
Example
You have NOK 300,000 in income from shares of catches and NOK 200,000 in income from seafarers’ wages. Your total income is NOK 500,000.
The income is distributed as follows:
Income from shares of catches:
NOK 300,000 of the total income of NOK 500,000 is 60 percent.
Income from seafarers’ wages:
NOK 200,000 of the total income of NOK 500,000 is 40 percent.
You’ve bought fishermen’s oilskins to the amount of NOK 6,000.
- 60 percent of this is related to the income from sales of catches.
- 60 percent of NOK 6,000 is NOK 3,600.
If you’re unable to prove the expenses, you must use the current rates. If you can prove that you’ve had expenses that exceed the rates, you can claim a higher deduction.
Survival suit
If you’ve bought a survival suit that cost less than NOK 15,000, you must calculate the share of the expenses that’s allocated to the income from shares of catches.
If the survival suit cost more than NOK 15,000, and the share of the expenses that’s allocated to the income from shares of catches also exceeds NOK 15,000, you must depreciate the survival suit in balance group d.
You're entitled to a deduction for expenses for premiums paid for the pension insurance managed by the Norwegian Guarantee Fund for Fishermen) or other pension premiums.
Make sure the pension premium is stated in your tax return.
You’re entitled to a deduction for fees to national membership organisations, such as the Norwegian Fishermen’s Association.
There are limitations on the size of the deduction. The maximum deduction for 2023 is NOK 7,700.
If you pay fees to several trade unions, the total deduction cannot be higher than the maximum deduction.
If you receive shares of catches on someone else’s fishing vessel, you’ll normally be entitled to a deduction for all the expenses you’ve had related to the income from shares of catches.
Own fishing gear
If you bring your own fishing gear to a fishing trip on someone else’s fishing vessel, such as nets, seine nets and fishing hooks, you’re normally entitled to a deduction for these expenses.
If the purchase price for such gear exceeds NOK 15,000 and the gear has an expected lifetime of at least three years, you must depreciate it.
If the purchase price is less than NOK 15,000 or has an expected lifetime of less than three years, you can deduct the full expense directly in the relevant income year.
Supporting documentation
You do not need to send us any documentation, but you must be able to present supporting documents for any expenses that you claim deductions for if we ask you to.