All companies that have assets or receive income in Norway must submit an annual tax return. This annual tax return must include, an extract of accounts related to the company’s Norwegian turnover/activity.
If a company is registered in the Norwegian tax registry, the obligation to file a corporate tax return is mandatory. This obligation is mandatory, even in cases where a company disputes its obligation to pay tax to Norway.
Extracts of accounts
Extract of accounts, showing the accounting figures for the activity in Norway, must be enclosed with the tax return. All income related to the Norwegian activity must be included. It is also important to include all costs directly related to the activity in Norway. If you have indirect costs, such as overheads and administration, a portion of the costs may be allocated to the Norwegian activity and deductible against Norwegian turnover.
The tax administration law from 2017
Prior to the fiscal tax year 2016, it was the tax administration’s job to audit the filed tax return and determine how much tax the company should pay.
From 1 January 2017, a new tax administration law came into force. Under this law, the tax administration no longer determines the tax to be paid. Instead, the tax amount is determined by the tax subject by filing the tax return. The tax administration’s job is to decide if they agree with the tax calculation made by the tax subject.
Exemptions from filing
Prior to 1 January 2017, non-Norwegian companies have succeeded in obtaining exemptions from filing the Norwegian corporate tax returns. This occurred in cases where a tax treaty clearly prevented Norway from levying a corporate tax.
However, with effect from the income year 2016, the Norwegian tax administration can no longer grant such exemptions, since the tax calculation is supposed to be determined by the taxpayer and not by the tax administration.
More information: Do the right things when doing business in Norway
Unsubscribing from the tax register
If in previous years, your company has engaged in business activities within Norway and the reporting of the contract(s) is not complete or up to date, you may be listed in the tax register, with an obligation to file a tax return. We recommend checking the registration and if necessary, unsubscribing from the tax register.
Failing to submit a corporate tax return and extract of accounts, will most likely result in additional tax and mandatory fines.
The corporate tax return and the extract of accounts must be filed electronically by 31 May the year following the fiscal year.
For more information relevant to foreign companies with business activities in Norway, download our practical guide to Norwegian compliance, formalities and reporting responsibilities.
This article was first published 16 March 2018, latest update April 2021.
Find out more about Magnus Legal’s tax services on our webpage: Corporate tax in Norway