Renting out cars

When you use your car privately and your rental income does not exceed NOK 10,000 during the year, you do not have to pay tax on the rental income. It makes no difference whether you rent out the vehicle privately or through an agent (an app or online service such as nabobil.no or gomore.com).

If the rental income exceeds NOK 10,000, it must be declared in the tax return as income.

You may be entitled to deductions for expenses related to the rental activity. If the lessor covers all the expenses associated with upkeep of the vehicle, including fuel, the deduction rate is NOK 3.50 per kilometre. When the person renting the car pays for his or her own fuel, use a rate of NOK 2.80 per kilometre. See the Directorate of Taxes’ statement of principles concerning tax liability in connection with the renting out of cars mediated via an online marketplace for more information (in Norwegian only).

Personal transport

You do not have to pay tax if you only carry passengers with the intention of covering your expenses (fuel expenses, etc.). Generally, using a vehicle in this way is not considered commercial activity.

You'll have to pay tax if you receive tips for the journey that in reality constitute payment for the trip. The income will then be taxable. If you carry passengers, you must consider 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. 

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 your own expense and risk
• has a certain scope
• is likely to generate a surplus over time
• is aimed at having a certain duration.

 

Depreciation and maintenance

In a business, the car must be capitalised and depreciated (not a direct deduction). See the rates for depreciations.

Expenses for maintenance may be deducted, as can for instance fuel, oil and insurance. Decreases in value are governed by the rules concerning depreciation. If the car is also used privately, a benefit for private use must be calculated that will reduce the deduction (“reversal for private use”). Deductions will only be relevant if the income is taxable.

Car sharing as the main source of income

If you decide to make driving (for instance via Uber or similar services) your main source of income, 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 expenses associated with the driving will be deductible. You’ll be entitled to deductions for fuel, insurance, etc. under the general rules. If you use the car privately, the deduction will be reduced.

You must submit the tax return for self-employed persons and businesses. You do not have to submit an income statement if your turnover is less than NOK 50,000.