Shares acquired before 1 January 1989
Transitional rules ensure that the increase in value from the time of the taxpayer's acquisition through until 1 January 1992 on shares that the taxpayer could have realised tax-free until 31 December 1991 will not be liable for tax under the tax rules that came into force on 1 January 1992.
Conditions for using upward adjustment of input value
The taxpayer must have owned the shares for at least three years on 1 January 1992 (i.e. the acquisition took place before 1 January 1989) and the shares must not have been owned as part of a commercial enterprise on 1 January 1992.
In the case of Norwegian listed shares, the input value is defined as the average of the listed prices on each individual trading day as of 1 November 1991 to 31 December 1991 inclusive.
For foreign listed shares, the input value is defined as the most recent listed price through to 31 December 1991 inclusive.
For unlisted shares, it follows from Section 10-12 of the Tax Act that the input value may only be based on the share's proportional share of the company's capital value from 1992, or the share's original cost price in cases where this can be documented. Therefore, when determining the basis for the deductible risk-free return, the taxpayer may not use the share's proportion of the company's accounting equity or value from an approved valuation, which were the other alternatives linked to the right to use upward adjustment.
Where can I find out if I have acquired shares with an upwardly adjusted input value?
This value is specified in the "Shareholder’s tax report" (RF-1088), which is sent to the shareholder every year. In such cases, the acquisition date will be a date before 1 January 1989. Contact the tax information helpline on 80 08 00 00 if you are unsure.
How is the input value determined?
The input value will be determined in connection with the tax assessment for the 2006 income year and every subsequent year. The upwardly adjusted value has replaced the original input value/cost price.