New business owners or corporate tax payers must pay tax on projected profit to the authorities. Tax rates and the way of reporting vary in relation to which form of organisation and sector you have chosen.
Tax for single person’s allowance
Tax is calculated on projected profit, along with other earnings, assets and deductions on a tax card. You must apply for prepaid tax in Altinn. Prepaid tax is due for payment on four different dates during the year, according to the income year. The dates are 15 March, 15 May, 15 September and 15 November. You will receive an invoice with payment details on Altinn based on the details given in the application. Due to the corona situation, the date for payment has been postponed. It is very important to pay before the due date. If you do not pay, the full amount of prepaid tax for the year will fall due for payment. Prepaid tax is only charged on amounts over NOK 2,000.
A lot of new businesses find that it can be complicated to estimate profit during their start-up period. So remember that you can revise your tax card to avoid paying too much if something happens that affect expected profit. The tax rate is normally between 34.4 and 49.8%.
Tax for limited companies
Corporate taxpayers are obliged to pay prepaid tax to the local authority where they are registered. New businesses therefore have to submit a form (RF-1097) to be charged tax. The business will then receive payment details sent via Altinn in January. The payment dates are 15 February and 15 April of the year following income year. The accountant or business can change or reduce their prepaid tax if necessary. And remember that you can claim a refund of overpaid prepaid tax. The tax rate is currently 22% on profit.
Tax returns for limited companies
The submission deadline for tax returns (RF-1028) for limited companies is 31 May. Remember to attach the mandatory attachments such as trading statement 2, and reconciliation of equity. The same applies to other forms that can be relevant to the business. Which form to use varies from one industry to the next, and on internal reporting conditions. Limited companies with no turnover also have to send in tax returns.
Trading report, tax
This is a simplified tax report that can be used by limited companies with a simple tax situation. If the business operates within transport, property or accommodation and serving alcohol, this scheme cannot be used.
Tax statement
A final tax statement is compiled in October, based on tax returns. When tax payable has been determined, you will be advised of whether there is a difference between prepaid tax and final pax payable. If you have calculated too little prepaid tax, a tax surcharge include interest can be payable. The business can either change or complain itself if the submission deadline has passed.