Hiring out of moveable property
Applies to people who hire out a vehicle or other items, such as tools, trailers or other assets.
Hiring out of vehicles and other items
When you also use your item and/or vehicle privately, and the gross rental income does not exceed NOK 10,000 during the year, you will not have to pay tax on your rental income. If it exceeds NOK 10,000, the income must be declared in your tax return. It makes no difference whether your hiring out is private or through an agent (an app or online service such as nabobil.no).
See the Directorate of Taxes’ statement of principles concerning tax liability in connection with the leasing of vehicles mediated via an online marketplace for more information (in Norwegian only).
Costs incurred in connection with the car hire may be deducted from taxable rental income. Since costs associated with the private use of the vehicle are not deductible, the costs must be allocated so that only the proportion of the costs linked to the hiring out of the vehicle will be deducted. To simplify the process, Section 1-3-20 of the Regulations on the valuation of capital, income and deduction items which must be assessed on a discretionary basis for 2019 (the 2019 valuation rules) lays down rules concerning deduction relating to the use of vehicles for business use. According to this provision, a “deduction is given for business use at the rate of NOK 3.50 per km (...) for a vehicle which is not taxed as a company car.” This deduction rate is based on the assumption that the taxpayer covers all costs associated with upkeep of the vehicle, including fuel. The rate does not apply in cases where the lessee covers fuel costs in addition to the rental charge.
The Directorate of Taxes has concluded that the rate may be used for the 2019 income year, but with a reduction in cases where the lessee pays the fuel costs himself. In these cases, the rate must be reduced to NOK 2.80 per km. The same percentage reduction (20%) of the ordinary rate must also be applied in cases involving the hiring out of other means of transport where the lessee covers the cost of fuel. Ordinary rates for other means of transport are given in section 1-2-6 of the valuation rules.
How do I enter this in my tax return?
You must declare your rental income in your tax return if the gross rental income exceeds NOK 10,000. Enter the gross rental income in your tax return.
You are also entitled to certain deductions, which must be entered under in your tax return. You can for example enter the online marketplace’s share as a deduction.
As regards deductions for vehicle costs, deductions should be entered using the relevant rate, unless the vehicle is considered a company car. If your lessees have covered the cost of fuel, you should use a rate of NOK 2.80 per km that the lessees have driven your vehicle. If the vehicle was driven 1,000km while it was being rented out, your deduction would be NOK 2,800 (1,000 km x NOK 2.80).
Tax at the rate of 22% (2019 and 2020) is calculated on your net income, i.e. rental income minus deductions.