There is no clear definition in the law of when someone is considered to be self-employed. Hobbies are tax-free, while commercial activity is taxable.
Get help to find out whether you are self-employed
Using our wizard, you can answer up to five questions and get an indicative answer as to whether or not you are self-employed.
The wizard is intended for people who sell goods or services, blog, game (e-sport) or carry on small-scale letting.
To determine whether you are self-employed, it is necessary to consider whether your business:
- is carried on at your own expense and risk,
- has a certain scope,
- is likely to generate a profit over time, or
- is aimed at having a particular duration.
- Before the first year in which commercial activity is considered to be taxable, you can have a start-up period of up to five years.
- The Norwegian Tax Administration requires expenses and income to be documented.
- You must complete form RF-1298 "Oppstart av virksomhet" (Starting a business – in Norwegian only) in order to claim deductions for start-up costs incurred during previous years. Submit the form together with the first income statement after start-up of your business.
Employee or self-employed?
In certain contexts, you must consider whether you're an employee or self-employed. This affects the way in which payments for completed assignments will be handled.
See some examples of how hobbies can become commercial activity:
Online sales and services
The internet as a marketplace can also generate income on which you must pay tax.
Odd-jobs and services
Income from paid work is taxable. The rules concerning tax exemption for certain types of odd-jobs are intended to provide simplification for clients, and not necessarily to enable contractors to generate tax-free income.