Tax when you earn money for the “russ” (Norwegian graduating students) season

When you're going to earn money for the "russ season", what you earn is usually taxable. That applies even when you earn money through voluntary work or the sale of goods as part of a "russ group". Here is an overview of the most important things you and your "russ group" need to know about voluntary work, income, and tax.

In brief 

  • Income that you or your "russ group" receive for various assignments is generally taxable.
  • The person who pays you must deduct tax, pay employer's national insurance contributions, and report the income as salary.
  • If you have an exemption card, you can earn up to NOK 100,000 without paying tax. Remember to change to a tax deduction card if you’re going to earn more than NOK 100,000 during the year.
  • Do you not have a tax deduction card or an exemption card? Then the person who pays your salary must deduct 50 percent in tax. 

"Russ voluntary work" is not voluntary work

"Russ voluntary work" is not voluntary work in the traditional sense. If the purpose of the work is to generate money for the members of the group, the income is taxable. This applies even if your "russ group" is registered as an association or club in the Brønnøysund Register Centre.

When you earn money as part of a group, you're usually considered a non-employed income recipient

When you and your "russ group" work and earn money together, you will in most cases be regarded as non-employed income recipients, and the money you receive is considered salary. Typical cases are when you get one-off assignments at a grocery store or from a company that provides various services, such as mowing lawns, shopping for elderly people, and similar tasks. 

When you take on an assignment and do work you are paid for, it's not voluntary work. What you are doing is work, and what you earn is salary. This means that the client must:

  1. report the income as salary to the Tax Administration
  2. deduct tax from your salary before paying it to you
  3. pay employer's national insurance contributions

If the client has done this correctly, the income should be pre-filled in your tax return. If they do not report the income to us, you must enter it yourself.

If you receive an assignment as a group, the client must report the salary, deduct tax and pay employer's national insurance contributions for each member of the group. 

Income from resale is taxable

If your "russ group" buys products to resell at a profit, for example, toilet paper or paper towels, you must pay 22 percent tax on the profit. This income is taxable as capital income, and you cannot use the exemption card amount. 

If you know you’ll have capital income, you can enter it in your tax deduction card. Then you’ll pay the tax during the year, and the chance of underpaid tax the following year will be lower.

You must enter the income and expenses from the sales in your tax return yourself, even if you updated your tax deduction card. You enter what you have earned, and the other members of the group do the same in their tax returns.

Do you have business activity?

In a few rare cases, your "russ group" can be considered a business. In that case, the NOK 100,000 exemption card threshold does not apply, and you must pay tax on any profits. You can be considered a business if you:

  • have many assignments
  • have a large revenue
  • generate a profit

Check whether your activity is considered a business

If your activity is considered a business, you may also be required to keep accounts. And if you have revenue that exceeds NOK 50,000 in the last 12 months, you must also register in the Value Added Tax Register. 

If you're unsure whether you're running a business, you can contact us and we will help you. 

What you can earn tax-free

NOK 100,000 with an exemption card

You can earn up to NOK 100,000 without paying tax if you have an exemption card. Remember that you should divide the exemption card amount if you have, or know you’ll have, several employers during the year. The amount you do not distribute is automatically distributed to the next employer. If you do not have enough of your exemption card amount left for your next employer, they must deduct 50 percent tax.

Do you believe you'll earn more than the exemption card amount? You should switch to a tax deduction card, so your tax will be correct.

Odd jobs in private homes

As a private individual, you can earn up to NOK 6,000 tax-free from odd jobs in a private home. The person you work for is then the client. If you earn more than NOK 6,000 from a single client, the whole amount is taxable. 

If you work in many private homes, have many assignments and several different clients, you may become tax liable as a business. This depends on the income and the scope. Read more about odd jobs and services

Advertisements on a "russ bus"

Income you receive for displaying advertising on a "russ bus" or "russ car" is tax-free. This is because the "russ bus" is a private vehicle and the income is linked to a leisure activity. Read more about tax and advertisements in the guide Skatte-ABC (in Norwegian only)

Remember!

  • If you have an exemption card, remember that you should divide the exemption card amount if you’ll have several employers during the year.
  • If you have a tax deduction card, remember to update it with the correct figures when things change.
  • When you receive different work assignments, ask for a written work agreement that confirms what you or your group will be paid. 
  • Ask the client to report your salary to us.