Who may be exempt from the obligation to submit an income statement, etc.?
Some self-employed persons are exempt from the obligation to submit an income statement. If you're in this category, you can still opt to submit an income statement or the Business Tax Return.
Self-employed persons must submit the tax return even if they’ve had no business activity last year. The submission exemption arrangement (for employees and pensioners) does not apply to self-employed persons.
If you have been sent a tax return for self-employed persons even though you did not trade during last year, you still must submit the tax return for self-employed persons with a blank income statement 1 (RF-1175). There is no need to complete the income statement in this case.
Conditions for exemption
- Gross operating revenues for the year must not exceed NOK 50,000.
- You must be a tax resident in Norway.
- Your enterprise must not be subject to an accounting obligation; see section 1-2 of Act No. 56 of 17 July 1998 (Accounting Act).
- Your enterprise must not be subject to a VAT registration obligation; see section 2-1 of Act no. 58 of 19 June 2009 (Norwegian VAT Act).
If you're exempt from the requirement to submit an income statement, you are also exempt from the obligation to complete additional form RF-1224 "Personal income for proprietorship”. However, if you wish to do so in order to benefit from any deductible tax-free return, you must submit the Business Tax Return or the income statement.
If you're exempt from the obligation to submit an income statement, you do not have a bookkeeping obligation. However, you must still be able to document all your income and expenses. You must retain this documentation in accordance with the rules of the Bookkeeping Act.
- The exemption does not apply if the annual profit generated by the business is included in the average tax assessment calculation for forestry (section 14-81 of the Tax Act) and reindeer husbandry (section 14-82 of the Tax Act). If you are engaged in business activities in these areas, you must submit an income statement and form RF-1177. The exemption cannot be used if you have an obligation to submit:
- RF-1223 "Drosje- og lastebilnæring" (Taxi and heavy goods vehicle businesses - in Norwegian only)
- RF-1189E "Letting etc. of real property" together with form RF-1084 "Avskrivning" (Depreciation – in Norwegian only), which apply to both business activity and the let property
- claim the business income to be shared with a spouse et al.
- have been engaged in more than one business in the course of the year
- have been engaged in business liable to tax in more than one municipality
How to submit a tax return without an income statement
When you log in to the tax return for sole proprietorship (ENK) in Altinn, you'll be asked whether you will submit with or without an income statement. Choose the alternative: ”The sum total of my sales income does not exceed NOK 50 000 and I do not want to submit an income statement” and click ”Continue”.
In the next screen, you can click the tab «To guide for sales income and operational expenses». Choose which attachments you'll submit and click "Update”. If you have business income/expenses from RF-1084 and RF-1219, you click the button ”Fill in RF-1084/RF-1219”. After completing the attachment, the income/deduction will automatically be transferred to the appropriate item in the Guide when you click ”Save/Go back”.
- If you do not submit an income statement, the submission of "RF-1224 Form for calculation of personal income" is voluntary.
- If you do not submit RF-1224, the amount under item Operational profit/loss is assumed to be your calculated personal income. You should submit RF-1224 if you have negative calculated personal income, either from the relevant income year or as a carry-forward deduction.