Guidelines for completing RF-1175 "Income Statement 1 for 2019" Approved by the Directorate of Taxes

Specification: Sole proprietorships with more than 20 statement as an enclosure with the tax Items 7000 – 7080 are only to be used for employees, or that have assets with a total return is introduced for sole proprietorships means of transport. Expenses relating to value of more than NOK 20 million, must engaged in activities whose machinery and tools used in production submit Næringsoppgave 2. gross operating income (corresponding to (e.g. tractors, diggers, combine harvesters, item 9900 in the income statement) does forwarders, front shovels etc.) Visual artists who only produce works of not exceed NOK 50,000. For the time must be entered under items 6200, 6695 art as mentioned in Act No 58 of 19 June being, certain people cannot use the and 7500. 2009 relating to value-added tax § 3-7 income statement, including anyone who subsection 4, shall not submit Income has an annual result which either now or Who must submit Income Statement 1. They must submit form RF- later will be included in average tax Statement 1? 1242 ‘Næringsoppgave for billedkunstner ’ assessed income from forestry or reindeer Self-employed persons etc. have a duty to (norwegian only). husbandry. See submit income statements, cf. the Tax https://www.skatteetaten.no/bedrift-og- Administration Act section 8-14, cf. section General and limited organisasjon/skatt/skattemelding- 8-2 with associated regulations. Income partnerships must submit naringsdrivende/hjelp-til- Statement 1 is adapted for self-employed Næringsoppgave 5 (RF-1368) or skattemelding/under-50-000-i- persons etc. who are not obliged to submit Næringsoppgave 2 (RF-1167)as an driftsinntekter/2/. annual accounts pursuant to the enclosure with their Act section 1-2. Anyone statements. Enclosures with the income carrying on an business activity is subject statement to a bookkeeping duty pursuant to the enterprises that are All self-employed persons etc. engaged in Bookkeeping Act. If an enterprise/ a self- engaged in business activities and whose agriculture/horticulture, forestry, fur employed person not obliged to submit sales revenues do not exceed NOK 2 farming, reindeer husbandry, must submit annual accounts pursuant to the million are only subject to a bookkeeping an additional form, form RF-1177 Accounting Act voluntarily prepares full duty. Such enterprises can choose ‘Landbruk ’ (‘Agriculture ’ – in Norwegian annual accounts in accordance with the whether to submit Income Statement 1 or only), with their income statements. provisions of the Accounting Act, 2 2019 Næringsoppgave 2. Separate guidelines, RF-1178, have been (form RF-1167) can be used instead of prepared for this. must use Income Statement 1. Næringsoppgave 2 (form RF-1167). Everyone who submits Income Statement Persons not considered to be self- 1 (RF-1175), must as a rule also submit that are employed (not obliged to submit income Tax-exempt institutions form RF-1084 'Avskrivning ’ nonetheless liable to tax, and that are statements), but who let real property, (‘Depreciation ’ – in Norwegian only) and, if subject to a bookkeeping duty, can use must use form RF-1189 Letting out etc. of relevant, form RF-1219 ‘Gevinst- og Income Statement 1 (form RF-1175) as an real property 2019. This also applies to tapskonto ’ (‘Profit and loss account ’ – in enclosure with the tax return for limited letting of agricultural land and dwelling Norwegian only). liability companies etc. (form RF-1028). houses on farms. Sole proprietorships that have business that are General and limited partnerships who are Local authority undertakings income must also submit form RF-1224, part of the municipality as a legal entity only duty to keep books cf. Norwegian ‘Personal income from and that comply with municipal principles Bookkeeping Act section 2 second ’. in the preparation of their annual accounts, paragraph must use RF-1368 must as a rule submit Income Statement 1. Næringsoppgave 5 (norwegian only). If deductions are claimed for expenses If the local authority undertaking voluntarily relating to estate cars, vans, lorries of less General and limited partnerships that prepares full annual accounts, settled and than 7.5 tonnes or passenger cars (driven prepares annual accounts pursuant to the valued in accordance with the provisions of more than 6,000 km as part of business provision of limited accounting obligation in the Accounting Act, the undertaking can activities), the form RF-1125 ‘Bruk av bil’ section 3-2b of the Norwegian Accounting submit Næringsoppgave 2 instead. (‘Car use’ – in Norwegian only) must be Act and all non-accounting general and submitted with the tax return. limited partnerships can deliver RF-1368 One income statement only! Only one copy of Income Statement 1 shall Næringsoppgave 5 (norwegian only). Sole proprietorships that have business be submitted, even if the operations income from Svalbard must also submit The same applies to sole proprietorships comprise several types of business. Self- form RF-1341 Beregning av alminnelig that prepare annual accounts in employed persons must submit all inntekt for på accordance with the provisions on limited forms/enclosures electronically. Svalbard. accounting obligations in section 3-2b of the Accounting Act. All companies / Who can be exempted from the Fishermen and hunters at sea who are enterprises can choose to use RF-1167 obligation to submit an income engaged in business activities and are Næringsoppgave 2 (norwegian only). statement? subject to a bookkeeping duty must submit A reporting system with exemption from Income Statement 1 and form RF-1213 the obligation to submit an income ‘Fiske ’ (‘Fishing ’ – in Norwegian only) with RF-1176E parts B and C completed as an enclosure Specific information about the Specification of stocks with their tax returns. Those who are not use of plus and minus signs in The tax value of stocks of goods shall be themselves engaged in business activities front of the figures in the form set at the acquisition price. The value of (e.g. ordinary recipients of shares of the stocks of goods produced by the enterprise catch/proceeds) are only obliged to submit are set at their production cost, i.e. the form RF-1213. Main rules: value of direct production costs such as In principle, all figures shall be reported raw materials, semi-manufactured goods, without the use of signs if it is clear from Everyone engaged in taxi and heavy process materials (fuel, lubricant, the heading whether they should be added goods vehicle must production electricity etc.) and production or subtracted given the context in which complete form RF-1223 ‘Drosje - og wages. lastebilnæring ’ (‘Taxi and heavy goods they are entered. In other words, the figure vehicle businesses ’ – in Norwegian only) should not be preceded by a minus sign if Buildings and plant built for own accounts as an enclosure with their income the text states that the figure concerns an for resale are valued at production cost. statements. expense, a deficit etc. and, conversely, a Guideline production costs for many goods plus sign should not be used where the and livestock types are given in the Everyone who run hotels, pubs, text states that the figure concerns income, Directorate of Taxes’ annual valuation restaurants etc. that serve beer, wine and profit etc. rules. spirits, must complete form An exception from this rule can be Book publishers and booksellers are, RF-1122 ‘Overnattings- og serveringssted ’ illustrated by the following example: subject to certain conditions, permitted to (‘Hotels, pubs, restaurants etc. ’ – in deviate from production costs and During the income year, the letting of a Norwegian only) and submit it as an acquisition price when valuing their stocks property has resulted in expenses that enclosure with their income statement’. of books, cf. section 14-5 of the Ministry of exceed the income: Finance’s Regulations No 1158 of 19 Information about the submission November 1999. Income 30,000 of income statements Tax returns, income statements and other Expenses 35,000 mandatory forms can be submitted Items 0110 - 0170 electronically via specialist systems or via Enter the tax value of stocks under items Loss - 5,000 Altinn; see the guidelines for tax returns 0110 – 0165. and the www.skatteetaten.no website. In order to transfer this loss of NOK 5,000 If it is not possible to individualise goods, Self-employed persons must submit all to an item entitled ‘Income from letting’, it the stocks are to be valued using the FIFO forms/enclosures electronically. must be preceded by a minus sign so that principle. it can be deducted – it is, after all, an Information about accountants expense (and not income as the heading Pursuant to the Authorisation of External would indicate). Item 0130 Self-produced finished goods Accountants Act, section 3, the name and Stocks of products that are to be sold must address of external accountants must be be entered under this item. Fur businesses noted on all documents that the accountant Reservations: should enter the value of marketed furs prepares for the client. There is a separate If a field contains a pre-printed sign here. field at the top of page 1 for this. It must be (positive of negative), the reported figure stated whether the external accountant has shall be written without a preceding sign. A kept the accounts and/or has completed sign shall only be used for reporting Item 0150 Livestock This item is only used for agricultural the income statement. amounts with the opposite sign to the pre- printed one. livestock. Fur and reindeer husbandry Tax liability to more than one businesses should use item 0165. In fields showing totals and results, a municipality Total livestock value - the value of the In the event of tax liability to more than one minus sign shall always be used when the number of animals declared on page 1 of municipality, the tax return and all sum total is negative. form RF-1177 ‘Landbruk ’ (‘Agriculture ’ – mandatory enclosures are submitted to in Norwegian only) must be copied to item one tax office. This also applies to Page 1 of the income 4.4.2 in RF-1030 ‘Tax return for self- businesses assessed as partnerships that statement employed persons etc.’. submit partnership statements with The personal ID number (11 digits) must mandatory enclosures. Sole be entered for sole proprietorship, while When valuing livestock, use the rates proprietorships that are liable to tax to cooperative enterprises must provide their specified in the valuation rules. more than one municipality should submit organisation number. If the enterprise is form RF-1034 ‘Skjema for fordeling av not located in the business person's Cattle, pigs, sheep, goats and poultry stedbunden inntekt og formue mellom municipality of residence, it is the address except hens, which were adult at the start kommuner ’ (‘Form for the allocation of of the enterprise that must be entered in of the year and still extant at the year-end location-specific income and capital the form. The number of full-time must be valued according to the calculated between municipalities’ – in Norwegian equivalents worked by employees during average value of all adult animals of the only) as an enclosure with their tax returns. the accounting year must also be stated. individual species at the start of the year. For example, two jobs of 50 per cent of The following are deemed to be adult full-time work are deemed to be one full- animals at the start of the year: cattle over time equivalent. 2 years of age, breeding pigs over 6 months and goats over 9 months, as well

Page 2 as sheep, geese, ducks and turkeys over 1 Items 0270 and 0280 – for Items 0310 – 0332 year. cooperative enterprises These items must be completed by Both invoiced and non-invoiced New animals added during the year cooperative enterprises that operate in debtors are included here. through self-breeding should in principle be accordance with recognised cooperative valued at the production cost. The value of principles. The total taxable business Under item 0310, you enter trade debtors own work should not be included in this income before deductions is entered under at their nominal value at 31 December value. In practice, the animals should be item 0270 pursuant to the Taxation Act 2019 and 31 December 2018. valued in accordance with unit prices section 10-50. This income forms part of The tax write-down on trade debtors is specified in the valuation rules. Purchased the basis for the calculation of taxable breeding animals should be valued at the business income from trading with own entered under item 0320. same price as self-bred animals. Food members, see item 0280. The amount in In certain cases the tax value in item 0330 animals and young animals purchased with item 0280 is the maximum limit for may be negative. Such write-downs must a view to sale as slaughter or live animals provisions pursuant to the Taxation Act always be indicated by filling in the should be valued at acquisition cost plus section 10-50. estimated feed expenses, etc. through to amounts in the form. The tax value under the year-end. In item 0270, the total taxable income is item 0330 is divided between items 0331 and 0332 and transferred to the balance transferred from item 9940, and, if Younger self-bred animals should be relevant, adjusted for income and sheet. valued proportionately according to the unit deductions entered directly in the tax prices for new adult animals; see the return (form Pages 2 and 3 of the income valuation rules. RF-1028). statement

Income from trading with own members Item 0160 Self-produced goods for use (the maximum special tax deduction for General information about profit/loss in own production and cooperative societies) is calculated using The value of self-produced stocks (typically The profit/loss and balance sheet show the the following fraction: feed stocks) to be used in own production tax profit/loss and tax values. As far as should be entered under this item. The possible, the numbers are in line with value is not included under taxable capital Above the fraction line: Norwegian Standard NS 4102, second in the tax return. Total taxable business income multiplied edition. However, a four-digit level is used. by gross turnover (sales or purchases) to/from unit owners/members. Entering last year's figures in the income Item 0165 Reindeer, fur-bearing animals statement and balance sheet is voluntary. and fur in stock The value of live reindeer and fur-bearing This does not apply if last year's figures Below the fraction line: animals should be entered under this item have been recalculated. The following Regular gross turnover (sales to or procedure applies for completion in Altinn: - as the quantity from page 1 of form RF- purchases from) 1177 ‘Landbruk ’ (‘Agriculture ’ – in Information about trading with unit owners/ • Under "2. Specify the balance sheet", Norwegian only) multiplied by the rate from own members and equivalent turnover is click "Change" in line "9960 Taxable section 3-1-4 of the valuation rules. The found in the tax return (form RF-1028) Equity". value of furs in the business's own stocks page 1, item 101 and 102. should also be included under this item. A • Then enter the amount for taxable capital correction must be made for item 0165 in Business income and turnover plus back as of 31.12.2013 under item 2050 "Other item 2058 or item 2059 on page 4 (see the payments (bonus) and other distributions Equity" in the "Last year's value" column. guidance under "Business expenses are entered excl. VAT. without allowance entitlement/equity Profit and loss account corrections"). Tax value of trade debtors The rules for the standard estimation of losses on trade debtors are set out in the Item 3000 Sales revenues and Item 0170 Total stocks Ministry of Finance’s Regulations No 1158 withdrawals - liable to VAT The sum in item 0170 must be entered in Here you enter revenues from sales liable of 19 November 1999 section 14-5 letter b. item 1495 in the balance sheet. The sum to VAT and the value of withdrawals of of items 110 – 0140 and item 0165 must goods and services for the period. The be entered under item 4.4.3 in RF-1030 Item 0300: sales/withdrawals are entered excl. VAT. ‘Tax return for self-employed persons etc. Newly established enterprises can choose Internal transactions between entities in ’. Item 0150 must be entered under item to write down trade debtors by two per cent the same enterprise are not to be included. 4.4.2, while item 0160 should not be at the end of the year of formation and the included in taxable capital. two following income years, cf. the For the sale of fish, price subsidies etc. Taxation Act section 14-5 fourth that are part of the catch settlement are Gross profit on goods purchased paragraph. Such enterprises must tick item included, but after deducting fees to the for resale 0300. Do not fill in the boxes for confirmed sales . Indirect taxes such as The purpose of this specification is to losses on trade debtors and credit sales, the fisheries product tax must be included, determine the gross profit made by the but transfer the write-down of 2% to the while discounts, returned goods etc. must enterprise (item 0260) from sales of goods field for deductions – item 0320. be deducted. The product tax is deducted for resale. The combined sales revenues in item 3300. from items 3000, 3100 and 3200 are entered under item 0240.

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Enterprises with non-VAT-liable sales under this item when the person receiving pay is not entered in the profit and loss enter sales revenues under item 3100 or the rent is registered in the VAT register. account. If the amount is entered in the 3200, see below. accounts, it must be recognised as an equity adjustment under item 2058. Item 3650 Letting of rights – hunting, fishing etc. Item 3100 Sales revenues and For self-employed persons etc. who are withdrawals – not liable to VAT Income from the letting of various rights members of a cooperative enterprise, back Here you enter revenues from sales not relating to real property is entered here. payments, bonuses and dividend on liable to VAT and the value of withdrawals purchase will normally be taxable business of goods and services for the period that income if the basis for the back payment falls within the scope of the VAT Item 3695 Other rental incomes Here you enter income from the letting of and/or bonus payment is trading with the regulations. Sales of goods etc. that fall operating equipment etc. liable to VAT. cooperative enterprise, and the trading is outside the scope of the VAT Act are related to the member's business activities. entered under item 3200. Item 3700 Commission income Withdrawals of e.g. fish from the enterprise Here you enter income from commission Item 3910 Income added/cost deducted to owners/partners or employees must be sales, income pertaining to royalties, from timber account this year included here. Withdrawals for the licence income etc. Here you enter the income or cost of the owner/partner’s benefit are valued at the year from the timber account. Cost is price that could have been achieved from entered with negative sign. Recognition of ordinary sale of the fish. Moreover, the Item 3890 Taking to income from revenue must correspond to item 537 in positive profit and loss account owner/partner’s withdrawal of the fish must RF-1177 Landbruk. A profit and loss account must be kept for be specified under item 2064. each type of business. Under this item, you Recognition of cost must correspond to enter this year's share of taxable income item 537 in RF-1177 Landbruk. Item 3200 Sales revenues and from positive profit and loss accounts. withdrawals – outside the VAT area Here you enter revenues from sales and Each profit and loss account must be Item 4005 Cost of sales the value of withdrawals of goods and reported using form RF-1219 ‘Gevinst- og For trading companies, this item covers the services for the period outside the VAT tapskonto ' (‘Profit and loss account ’ – in purchase price of sold goods (item 0250, area. Such revenues include medical Norwegian only). page 1) for the turnover which is included practice, teaching services etc. in items 3000, 3100 and 3200. Expenses attributable to the purchase of goods which Item 3895 Taking to income from will be used in production/turnover should Item 3300 Indirect taxes relating to balance also be included under this item. sales Here you enter this year's taxable share of This item covers all special indirect taxes negative balance. Any compensation from Purchases of animals/livestock should also (special taxes) included in items 3000, realisation of operating assets that has be entered here. 3100 and 3200, including the product tax been fully or partly taken to income in the Changes in value of the stocks of raw for fisheries. This item is deducted from the realisation year is entered here. The materials, semi-manufactured goods operating revenues. figures are found under item 107 and/or item 110 of form RF-1084 ‘Avskrivning ’ purchased and goods purchased for resale must be included under this item. This (‘Depreciation ’ – in Norwegian only). Item 3400 Public subsidies/ amount is arrived at by adding up the reimbursement changes in value of stock as entered under Here you enter public subsidies and Item 3900 Other income relating to items 0110 and 0140 on page 1. reimbursements. Reimbursements paid operations from the National scheme to Under this item, you should enter other Write-downs for obsolescence and risk of a medical practitioners, dentists, operating expenses which were not fall in prices cannot be included, as it is the physiotherapists etc. for treatment are included under the items above, including tax value of the stocks that is to be used. entered here, as are apprenticeship interest on trade debtors, the taxable subsidies, instructor subsidies etc. component of withdrawals from the forest Extraordinary subsidies such as interest fund, compensation for lost animals and Item 4295 Change in stocks of goods relief subsidies, liquidity subsidies, withdrawals of feed for private horses. under production and self-produced finished goods investment subsidies etc. are not entered The change in value of stocks of goods Income from sale /realisation of not here, but are included under item 3900, under production, including livestock, and depreciable fixed assets must be entered ‘Other revenue relating to operations’. self-produced finished goods should be here in item 3900. entered under this item.. A reduction in stocks increases costs, which is entered as Item 3600 Rental income, real property Shares of catches/proceeds of catches a positive amount with no preceding sign. Here you enter rental income from letting received by a fisherman from another An increase in stocks reduces costs, which and the value of your own use of all real master must be entered here. capital (real property, housing, business is entered as a negative amount with a premises etc.) that is not liable to VAT. Sick pay received must be taken to income preceding minus sign. The amount of the directly in the tax return under items 2.7.13 change is based on the tax values found and 1.6.3/1.6.4. Sick pay received for self- on page 1 under items 0120 and 0130. Item 3605 Taxable rental income, real property, liable to VAT employed persons engaged in a family day Among other things, rental income from care centre in his/her own home must be the letting of real property must be stated entered under items 1.6.3 and 2.1.3. Sick

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Item 4500 External services and catch or of proceeds of sale of a catch to Item 6200 Energy, fuel etc. relating to subcontracts fishermen and hunters at sea. production This item is used to enter expenses for Here you enter, among other things, fuel hired labour and subcontractors if they expenses relating to machinery and tools concern items 4005, 4295 and 4995, e.g. Item 5420 Reportable pension expenses used in production (e.g. tractors, diggers, accounting services, machinery hire with Here you enter expenses relating to combine harvesters, forestry forwarders, operator, freight, etc. current pension payments. All reportable front shovels etc.). income derived from surrendered property, etc. must be entered here; see item 247 in Item 4995 Change in stocks of self- RF-1177 ‘Landbruk ’ (‘Agriculture ’ – in Item 6395 Waste collection, water and produced fixed assets Norwegian only). sewage, cleaning etc. The change in value of stocks of self- The proportion of the abovementioned produced fixed assets must be entered expenses which concerns the use of here. For the purposes of the calculation of Item 5900 Other personnel expenses buildings, installations, etc. in the business the value of own work on depreciable Here you enter gifts to employees and should be entered here. The proportion buildings and installations, an allowance expenses relating to free canteens, which concerns housing for retired farmers corresponding to the salary of unskilled courses, cabins, staff and any let housing should be entered labour specified in a collective agreement accommodation and company sports clubs here, and a correction must be made in may be used. The same amount should be etc. Premiums paid pursuant to the Act item 1.5 of RF-1224E "Personal income entered as the opening value (item 1130). relating to Industrial Injury Insurance are from sole proprietorships". entered here. However, additional In practice, taxpayers within the premiums for health and accident agricultural sector are permitted not to post in excess of the statutory Item 6400 Other hire costs Hire costs from all objects other than the value of their own work on depreciable occupational injury insurance shall, when premises (item 6300) must be entered buildings and installations. In such cases, the employee is the beneficiary, be treated here. Examples include costs attributable the value of own work can then not be as pay and entered under item 5000. to the renting of real property included in the opening value or the basis (land/pasture), machinery, means of for depreciation. Here you also enter premiums for occupational pension schemes and transport, fixtures and fittings, etc. This item is also used for any carry back of defined-contribution pension schemes and capitalised costs, which in this case is other pension costs relating to actual Item 6600 Repairs to and maintenance entered with a negative sign. benefit plans. of buildings Here you enter expenses relating to Premiums and contributions to repairs to and maintenance of buildings Item 5000 Pay, holiday pay etc. occupational pension schemes and used in business activities. Maintenance The amount to be entered here is both defined-contribution pension schemes are costs for housing for retired farmers and notifiable to the a-ordning scheme and always deductible. Moreover, pension other rental dwellings must also be entered subject to employer's National Insurance expenses relating to securing future here. Expenses incurred in upgrading the contributions. pension commitments will not be condition of the building in relation to its deductible from taxable income. Fishermen's wages are to be entered here, original condition are not deemed to be but wages paid to active fishermen are maintenance expenses. Such expenses One-off premiums paid to insurance nonetheless not liable to Employer's are deemed to be improvement costs, and companies or one-off payments that National Insurance contributions. must be capitalised. replace current pension obligations to Premiums for individual annuities and former employees are deductible. Expenses attributable to the maintenance endowment insurances where the of buildings which have not been used for employee is the beneficiary are entered the business (e.g. housing for retired here. Premiums for group annuities can be Item 5950 Own pension scheme farmers or rental dwellings) must be treated as deductible payroll expenses, Contributions made pursuant to the entered under item 1.5 in RF-1224E and, in such cases, must be entered here. provisions of the Act relating to defined- ”Personal income from sole proprietorships If premiums for group annuities are not contribution pensions section 2-3 second ”. treated as pay, they must be entered under paragraph for self-employed persons and item 5900. Premiums for annuities personal partners in businesses assessed schemes and endowment insurances with as partnerships are entered here. Item 6695 Other repairs and employees as the beneficiaries are always maintenance liable to Employer’s National Insurance Here you enter repairs to and maintenance Item 6000 Depreciation of tangible fixed of machinery, equipment etc. used in the contributions. assets and intangible rights Here you enter tax depreciation from form enterprise's business activities. This also RF-1084 ‘Avskrivning ’ (‘Depreciation ’ – in applies to tractors, diggers, combine Item 5300 Other allowances which are harvesters, forestry forwarders, front notifiable to the a-ordning scheme Norwegian only). Both diminishing-balance shovels etc. Repairs to and maintenance Expenses incurred by self-employed depreciation (incl. any depreciation on an of means of transport are entered under persons which are notifiable to the a- empty positive balance) and straight-line item 7020. ordning scheme but not subject to depreciation must be included here. Any employer's National Insurance distribution of costs linked to purchases of contributions must be entered under this fur-bearing animals or reindeer should also Item 6700 External services item. Example: Payment of shares of a be entered here. Costs relating to, e.g., external accountants, lawyers and consultants etc.

Page 5 are entered here. Such costs and case A deduction can be claimed for driving on Item 7155 Travel/subsistence and car costs may be deductible if the case that forest and construction roads, for driving allowances which are notifiable to the a- the assistance concerns has a direct with a trailer or transporting equipment ordning scheme All expenses attributable to travel, connection with taxable income or that, due to its weight or nature, cannot subsistence and car allowances which are deductible expenses. Non-deductible naturally be placed in the boot or on a roof notifiable to the a-ordning scheme must be expenses are entered under item 2053. rack, and for passengers. entered under this item. Non-notifiable The rates are available at travel expenses must be entered under Item 6995 Office expenses, electronic www.skatteetaten.no/no/Tabeller-og- item 7165. communication expenses, postage etc. satser/. Here you enter office expenses, including expenses relating to electronic Item 7350 Expenses relating to entertaining (deductible) communication (phone, mobile phone, Item 7098 Private use of electronic Non deductible part of entertaining internet etc.). This item must be seen in communication expenses, cf. the Directorate of Taxes’ conjunction with item 7098 and these See the guidelines to item 6995. Tax Regulations section 6-21, shall be guidelines concern both items. The amount entered under item 7098 must entered under item 2051. About electronic communication: also be entered as a private withdrawal The total cost of electronic means of under item 2068 on page 4. Item 7495 Deductible membership fees communication is entered here. The Non-deductible membership fees are standard amount of NOK 4,392 shall be entered under item 2052. entered under item 7098, regardless the Item 7099 Private use of a business vehicle number or cost of electronic means of Under this item, sole proprietorships and Item 7500 Insurance premiums communication. The cost shall be entered personal participants in enterprises Insurance expenses are entered here, with under 6995, reduced by the amount of assessed as a partnership should enter the the exception of vehicle and personnel VAT that was paid on the ’business benefit of private use of a business vehicle. insurance, which are entered under items component’. The private component The basis for the calculation is in principle 7040 and 5900, respectively. (Voluntary (standard amount) is then entered under the car’s list price as new. There is a supplementary National Insurance for self- item 7098. separate calculation basis for electric cars. employed persons is entered directly as a deduction in the tax return and is included There are special regulations for the Items 7000, 7020 and 7040 Expenses in item 2078.) relating to means of transport benefit of private use of a company vehicle Under items 7000, 7020 and 7040, that falls outside the standard rules. The expenses are entered that relate to regulations apply to: Item 7565 Warranty and service vehicles used in business activities (estate expenses cars, vans, lorries and passenger cars that • Heavy goods vehicles with a total Accrued/confirmed expenses for warranty are driven more than 6,000 km per year as weight of 7,500kg or more and service work are entered here. part of business activities). Form RF-1125 • Buses registered to carry more than Provisions for warranty and service ‘Opplysninger om bruk av bil’ (‘Information 15 passengers expenses are not deductible. about use of vehicle’ – in Norwegian only) • Cars which pursuant to applicable must be enclosed if you are claiming a legislation or regulations may not be Item 7600 License and patent expenses, deduction for car expenses. Those who used for private purposes except royalties etc. are engaged in taxi and heavy goods travel between home and work. Expenses relating to patents, licences and vehicle businesses must enclose form RF- • Vehicles registered for nine or more royalties in connection with own 1223 ‘Tilleggsskjema for drosje- og passengers provided that they are production/sales are entered here. lastebilnæring’ (‘Supplementary form for used in a transport scheme taxi and heavy goods vehicle businesses’ organised by the employer for the – in Norwegian only) instead. Tax transport of employees to/from work Item 7700 Other deductible expenses Operating expenses that do not belong depreciation of means of transport must be and are not used privately except for under the other items are entered here. entered under item 6000. Road toll travel to/from work. payments, parking and ferry expenses etc. If a gain has arisen following the cessation are entered under item 7155 or 7165 as If you have used a business vehicle to of a branch of business as a result of the travel expenses. travel between home and work, for home realisation of an entire livestock holding visits and/or for other private travel, you and you wish to transfer the gain to the must make a reversal for the actual private profit and loss account, the difference Item 7080 Car expenses, the use of a distance travelled. Private use of a private vehicle in business activity between the sale sum (items 3000 and business car must also be declared as a If the use of the vehicle in business 3100) and the change in stock (item 0150) private withdrawal under item 2075 on activities has been accurately recorded, a must be entered here. sole proprietor can claim a deduction for page 4. the use of his or her private vehicle in The value of the conditionally allocated The rates and calculation method are business for up to 6,000 km in accordance gain (item 2097) must also be entered available at with the car allowance rates. The amount here. www.skatteetaten.no/no/Tabeller-og- must be entered as a equity correction in satser/. item 2057 on page 4.No duty to submit a car form applies in such cases.

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Item 7890 Deduction from negative administered by Norway and up on 1 January 1984 in accordance with profit and loss account gains made on the sale of dwelling houses, section 1-2 of the Ministry of Finance's Here you deduct this year’s share of the housing for retired farmers and leased Regulations of 29 August 1984, is the loss from negative profit and loss account. plots. difference between the balance basis at 31 The amount is taken from form RF-1219 December and the lower limit for ‘Gevinst- og tapskonto ' (‘Profit and loss NOTE: A personal participant (sole depreciation. Any empty positive balance account ’ – in Norwegian only). proprietorship) who has entered a (balance value without operating gain/loss on the realisation of a unit and/or equipment) must also be included here part of a gain/loss in a business assessed Item 7895 Confirmed losses on trade and entered in the balance sheet as the debtors as a partnership must enter this under item asset's value. Finally confirmed losses on trade debtors 0416, see this item. are entered here. Only losses on claims in Item 1130 Buildings, plant, machinery business activities are deductible. Item 8160 Exchange losses under construction – for own use Losses on receivables and in foreign This item is used when the operating Item 7896 Other confirmed losses currency must be entered under this item equipment under construction is intended All other deductible losses, such as losses (see item 8060). for use in own activities. on , are entered here. Item 8199 Other capital expenses not Item 1131 Buildings, plant, machinery Item 7897 Changes to tax write-down of specified in form RF-1219 “Gevinst- og under construction – for sale trade debtors tapskonto ” (‘Profit and loss account ’ – This item is used when the object under Changes to tax write-down of trade debtors in Norwegian only). construction is intended for sale. Costs, losses and deficits relating to are entered here. The amount is found income under item 8099 are entered here. under item 0320 as the difference between See the guidelines to item 8099. Item 1295 Depreciable assets outside this year's and last year's write-downs. the balance system Here you enter depreciable assets for If this year’s write-down exceeds last Item 9930 Profit/loss which straight-line depreciation is used, year's write-down, the difference is entered Business income or any loss to be and which are found in form RF-1084 as a positive amount (with no preceding transferred to page 4 is calculated here. In ‘Avskrivning ’ (‘Depreciation ’ – in sign). If this year’s write-down is smaller the case of a sole proprietorship, the Norwegian only). than last year's write-down, the difference amount is transferred to item 0401. is entered as a negative amount (with a Partnerships (ANS/KS/DA), cooperative The value of purchased fur-bearing preceding minus sign). enterprises and other legal entities that use animals/reindeer which is written down in Income Statement 1 (form RF-1175) accordance with the rules concerning cost transfer the amount to item 0410. allocation must be entered here. 7910 Transferred to timber account from this years surplus/deficit Here you enter the share of the year's Balance sheet – tax values The balance sheet in the income statement Item 1298 Negative Timber Account surplus or deficit that has been transferred Negative balance from the timber account must be completed in accordance with the to the timber account. Deficit is entered is entered here. The amount is equivalent Taxation Act’s provisions, and based on with a negative sign. The amount must to a negative amount in item 542 of RF- the tax values. correspond to the amount in item 535 of 1177 Landbruk. If the balance is positive, RF-1177 Landbruk. Example: the amount is entered in RF-1175 item Balance group a is entered under balance 2098 Capital items sheet item 1280 with the group’s balance value at 31 December. Item 1299 Negative profit and loss Item 8060/8160 Exchange gains/losses account Exchange gains/losses on outstanding If an enterprise that has been obliged to Here you enter amounts from item 16 in claims and in foreign currencies are submit annual accounts becomes subject form RF-1219 ‘Gevinst- og tapskonto' entered here. Gains/losses must be to a bookkeeping obligation alone, the (‘Profit and loss account’ – in Norwegian calculated using the tax rules for gain/loss enterprise can submit Income Statement 1 only). calculation. instead of Næringsoppgave 2. This could have a bearing on what is to be entered as the opening balance. See items 9996 – Item 1495 Stocks Item 8099 Other capital income not 9998 for more details. Here you enter the tax value of stocks – specified in form RF-1084 “Avskrivning the amount is found under item 0170. The ” (‘Depreciation ’ – in Norwegian only) value of any fish in fish farming facilities is and/or RF-1219 “Gevinst- og tapskonto Items 1080, 1105, 1115, 1120, 1205, also entered here. For fur-farming and ” (‘Profit and loss account ’ – in 1221, 1225, 1238, 1239 and 1280 – Norwegian only). reindeer husbandry, see the special operating equipment balances guidelines RF-1178 ’Rettledning til RF- This item should be used to enter Here you enter the total balance value for 1177 Landbruk og RF-1175 information such as the amount that is to each balance group. These amounts are Næringsoppgave 1 2018’ (’Guidelines to be posted when the taxpayer has not met taken from form RF-1084 ‘Avskrivning ’ RF-1177 Agriculture etc., and RF-1175 the conditions for reinvestment pursuant to (‘Depreciation ’.- in Norwegian only), which Income Statement 1 ’ – in Norwegian only) Sections 14-70 to 14-73 of the Taxation must be enclosed with the income item 0165. Act (conditional tax exemption upon statement. The balance value of involuntary realisation), interest support commercial premises, which was written

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Item 1500 Trade debtors concerning extraordinary distribution of Page 4 of the income Here you enter the tax value of trade felling on forested land following a natural debtors found under item 0331 (after disaster should also be entered under this statement deduction for any write-downs). item. Items 0401 - 0403 These items are for the use of sole Item 1530 Earned, not invoiced trade Item 2098 Positive timber account proprietorships only, for the debtors Positive balance from the timber account is specification of items to be transferred Here you enter the value of earned, not entered here. The amount corresponds to to the tax return and to form RF-1224 invoiced trade debtors found under item a positive amount in item 542 in RF-1177 Personal income from sole 0332 (after deducting any write-downs). Landbruk. Negative amount is entered in proprietorship . and/or RF-1341 item RF-1175 1298. Beregning av alminnelig inntekt for Item 1595/2275 Long-term enkeltpersonforetak på Svalbard. receivables/debts in foreign currency Debt The tax values of long-term receivables Item 0401 shows the total business income and debt in foreign currencies are arrived Item 2220 Enterprise debt to financial (or loss) transferred from item 9930 on at pursuant to the provisions of the institutions page 2. The type(s) of business activity Taxation Act section 14-5 (5), where it is Here you enter the debt that is deemed to is/are stated under item 0402, column A. In stated that receivables cannot be valued at be ‘enterprise debt’ pursuant to the the column with the heading ‘ID’, each type a lower exchange rate than the lower of regulations for estimated personal income. of business (if more than one) must be the exchange rates at the time of the You will find a more detailed description of numbered. The same number is to be annual accounts and the time of what is deemed to be ’enterprise debt’ entered in the ’ID’ field in form RF-1224 acquisition. Correspondingly, debt cannot under item 2.10 in RF-1225 ‘Rettledning til ’Personlig inntekt fra enkeltpersonforetak ’ be valued at more than the higher of the RF-1224 Personinntekt fra (Personal income from sole values on the date of the closing of the enkeltpersonforetak ’ (Guidelines to RF- proprietorship)’. annual accounts and the date when the 1224 ’Personal income from sole loan was taken up. Unrealised exchange proprietorship’). The same number must be used for losses must be offset against unrealised business activities for which the personal exchange gains. income is to be calculated combined Item 2600 Tax withholdings and other pursuant to the Ministry of Finance's deductions Regulations to the Taxation act, section Item 1599 Other receivables Tax deducted from wage payments to Here you enter outstanding value added employees are entered here. Maintenance 12-20-1, cf. section 10-42-3. Example: If tax, etc. payment deductions owed etc. are also activities include a riding centre, real estate entered here. business and letting of real property, and Tax equity the latter two are closely related in terms of Tax equity is the tax value of the their content and finances, the numbering enterprise. After reconciliation of the equity Items 9996 – 9998, transition from duty will be as follows: Riding centre (1). Real account on page 4, the amount in item to submit annual accounts to estate agency (2), Letting of real property bookkeeping duty (2). 0425 must tally with item 9960 in the If an enterprise goes from being obliged to balance sheet, tax equity. submit annual accounts to being subject to The figure from item 0410 is transferred to a bookkeeping duty, the mandatory income Untaxed equity column B. If more than one type of statement for this enterprise changes to business is operated, the figure is split up Income Statement 1. The closing balance and divided between the respective Item 2095 Negative balance for the previous year will have been settled businesses. Here you enter the total negative balance in accordance with the provisions of the at 31 December for the balance group(s) Accounting Act. This could imply that there Column C only applies to agriculture, that has/have such balance according to exist temporary differences. This will be forestry and reindeer husbandry which is form RF-1084 ‘Avskrivningsskjema’ evident from form RF-1217 ‘Spesifikasjon subject to average tax assessment and by (‘Depreciation form’ – in Norwegian only). av forskjeller mellom regnskapsmessige og self-employed persons transferring income The amount is untaxed income. skattemessige verdier’ (‘Specification of from the production of biomass/wood to differences between accounting and tax agriculture. For more information on this, values’ – in Norwegian only), which would see below and under item 433 in RF-1177 Item 2096 Positive profit and loss in that case have been an enclosure with account ‘Landbruk ’ (‘Agriculture ’ – in Norwegian the previous year’s income statement. In Here you enter amounts from form RF- only). such cases, a corrected opening balance 1219 ‘Gevinst- og tapskonto' (‘Profit and must be prepared. The corrected tax equity loss account’ – in Norwegian only). The The year's profit / loss from forestry in (item 9960) must be evident from item amount is untaxed income. individual enterprises is entered in column 9998. E. The amount corresponds to item 554 in RF-1177 Landbruk. Item 2097 Contingency for gain (see Taxation Act 14.70-1 ) Anyone subject to average tax assessment Contingency following involuntary for income from reindeer husbandry must realisation pursuant to the provisions of enter the annual income of the business in Sections 14-70 to 14-73 of the Taxation column B, and the correction that is Act must be entered here. Any necessary in order to determine the "contingency" in accordance with the rules

Page 8 average income (obtained from item 349 in income. See the guidelines to the form for finansielle produkter (kun for selskap) the additional form) must be entered in the calculation of personal income (Norwegian only). column C. The correction for deposits (RF-1225) for details. in/withdrawals from the "Avviklings- og Dividends from companies located in low- omstillingsfond for reineiere" (liquidation Sole proprietorships with income from tax countries outside the EEA Area are not and restructuring fund for reindeer owners) Svalbard must transfer amount in column tax-free. Nor does the tax exemption apply must also be entered in column C. The E to RF-1341 Beregning av alminnelig to dividends from portfolio investments in amount is taken from item 333 in RF-1177 inntekt for enkeltpersonforetak på other companies located in countries ‘Landbruk ’ (‘Agriculture ’ – in Norwegian Svalbard. outside the EEA Area. In this context, the only). holding is deemed to be a portfolio Columns F and G are used if allocation investment if the shareholder has at any Sole proprietorships with income from between spouses or registered partners is time during a two-year period owned less forestry must enter the annual income of being claimed. In principle and as a rule, than ten per cent of the capital or had less the business in column B. Correction for the allocation must correspond to the than ten per cent of the votes at the annual any income which has been transferred spouses' work effort and participation in general meeting of the company that from the forestry business (biomass/wood the business activities. Losses must be distributes the dividend. This rule applies production) to the basis for the special allocated to the enterprise’s responsible to dividends earned during the above- allowance for agriculture must be proprietor or to both if both spouses are mentioned two-year period. The earning transferred from item 523 in RF-1177 liable for the enterprise. The allocation of date will normally be the date on which the Landbruk and entered in negative in estimated personal income is carried out in decides to declare column C. form RF-1224, and the spouses jointly fill a dividend. in one copy of this form. Income which has been transferred from Cooperative enterprises are not entitled to the forestry business (biomass/wood For sole proprietorships, items 0410 – a risk-free return (cf. the Taxation Act production) to the basis for the special 9940 are to be used for the section 10-12) for taxable dividend allowance for agriculture increase the reconciliation of equity. reported under item 0411. agricultural income by the same amount. This transfer must not be posted in the In order for the reconciliation to be correct, accounts, but column C is used for this. If only the figures recorded in the accounts Item 0414 Taxable gains/Deductible are to be entered under these items. losses on the realisation of shares etc. the income is being transferred from Here, cooperative enterprises enter only forestry, the amount should be taken from If a sole proprietorship has recognised losses and gains resulting from the item 523 in RF-1177 ‘Landbruk ’ realisation of shares, securities funds (‘Agriculture ’ – in Norwegian only). income/gains or deficits/losses relating to holding(s) in businesses assessed as and/or primary capital certificates that are liable to tax and found in form RF 1359 The amount must not exceed 55 percent of partnerships in their accounts, the amounts Gevinst, tap, utbytte på aksjer og andre the gross production income of the must be entered under item 0416. finansielle produkter (kun for selskap) business. The actual reporting of any taxable income (Norwegian only). The corrections in column C must not be from participation in a partnership Cooperative enterprises that have realised reversed in form RF-1224E ”Personal (ANS/KS/DA) is done by transferring the shares that are covered by the exemption income from sole proprietorships ”. amounts from RF-1221 ’Deltakers oppgave over formue og inntekt i deltakerliknet method, cf. the Taxation Act section 2-38, are not liable to tax for gains on the Anyone not using column C must transfer selskap ’ (’Partner statement of capital and realisation of shares etc. and must ensure the figures from column B to column E. income in businesses assessed as partnerships ’ – in Norwegian only) directly that the loss or gain is not entered here. All self-employed persons must fill in to the tax return. If the enterprise has entered dividends column E. If more than one line is used and/or gains that are tax-free or losses that under item 0402 (if profit/loss from more are not deductible in the accounts, these than one type of business is entered), each For cooperative enterprises, items 0410 amounts must be entered in the correction profit must be transferred to the tax return – 9940 are to be used to calculate items 2053 and 2054 in order for the (form RF-1030) item 2.7. Each loss is profit/loss for the year reconciliation to be correct. transferred to item 3.2.19 of the tax return. The full field number for the field under Item 0411 Taxable dividend on shares items 2.7 and 3.2.19, respectively, to which etc. Item 0416 each amount (profit/loss) is transferred Dividends are often tax-free cooperative NOTE: To be filled in by sole must be entered in the column ‘transferred enterprises that are covered by the proprietorships only If the business is a partner in business to item no in the tax return’. exemption method (cf. the Taxation Act assessed as a partnership, the section 2-38). This is conditional on the taxable/deductible amount in this context The amounts in column E under item 0402 dividend being lawfully distributed and not must be entered under items 8099/8199 – are to be transferred to form RF-1224 item originating from a company covered by see these items. 1.1. The amounts from businesses with the one or more of the exemptions mentioned same ‘ID’ must be added up and below. If the dividend is tax-free, it is not to Non-deductible losses or income not liable transferred to a shared RF-1224. In form be entered under item 0411. Taxable to tax relating to the realisation of holdings RF-1224, corrections must be made for the dividend are found in form RF 1359 are entered under items 2053/2054 – for capital items that are not to be included in Gevinst, tap, utbytte på aksjer og andre the basis for the calculation of personal reconciliation of equity.

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Item 9940 Profit/loss for the year to unit owners/members adopted by the As an example the total of In the case of cooperative enterprises that cooperative enterprise will be excluded withdrawals/distributions to members must are registered as cooperative enterprises when the profit/loss in item 9940 is be entered here. (SA) in the Register of Business determined. See also the guidelines to Enterprises, or that operate in accordance items 0270 and 0280 on page 1. with recognised cooperative principles (cf. Non-deductible business expenses/ equity adjustment the transitional rules in the Act relating to Business income, turnover, discounts, Here you enter expenses/income that may cooperative enterprises section 163), the bonuses and other distributions are stated be recorded in the accounts, but that aggregate item 9940 shall show the total excl. VAT in this context. should not influence the taxable income, taxable business income before any e.g. non-deductible membership fees and deductions for back payments pursuant to Deductions for provisions or distributions to gifts, tax-free income, sick pay for self- the Taxation Act section 10-50. This unit owners/members shall be entered employed persons etc. means that disbursements and/or under item 9980 and will reduce the cooperative enterprise’s taxable business provisions for back payments (bonus) and Adjustments must also be made here for income in item 9985. other distributions to unit owners/members other items in pages 2 and 3 of the income adopted by the cooperative enterprise shall statement that influence the tax profit/loss Any dividends on purchases not be deducted before the profit/loss in without involving changes in equity or vice benefits/discounts that a consumer item 9940 is determined. See also versa. This will for example apply if: guidelines to items 0270 and 0280 on page cooperative society has guaranteed in advance are not deemed to be back 1. - Deducted home office payments, cf. the Act relating to - Deducted use of private car for Cooperative enterprises that are not cooperative enterprises sections 31 and business purpose entitled to make deductions for back 27. Consumer cooperative societies must - Change during the year in the payments (bonus) shall transfer the deduct any dividends on purchases value of fish at fish farms, amount to if income to item 201 and if /discounts that are guaranteed in advance reindeer stocks and fur-bearing animals and furs in stock.. Any deficit to item 222 in RF-1028 ‘Tax return from their business income before increase in value in this area is calculation of the profit/loss in item 9940. for limited liability companies etc. ’. entered under item 2058 and any Dividends on purchases /discounts in decrease in value under item consumer cooperative societies that are 2059. For fur farming and Items 9980 and 9985 apply to guaranteed in advance shall not be reindeer husbandry, see RF- cooperative enterprises only – included under item 9980. 1178 ’Rettledning til RF-1177 deductions for back payments (bonus) Landbruk ’ (’Guidelines to RF- Some cooperative enterprises can claim a If the cooperative enterprise has adopted 1177 Agriculture etc. ’ – in deduction from their business income for Norwegian only). distributions and provisions for back back payments (bonus), cf. the Taxation payments (bonuses) that exceed the Act section 10-50. This applies to the maximum special tax deduction for following types of enterprises: Specification of a private account cooperative societies pursuant to the This is a specification of item 0422 under • consumer cooperative societies Taxation Act section 10-50, see item 0280, changes in equity. The proprietor’s • purchasing cooperatives that distribute pre-ordered goods among the amount in excess of this must be withdrawals and private expenses entered their members entered under item 233 in the tax return in the enterprise's accounts are entered • enterprises that are exclusively or (form RF-1028). here. The private expenses are not to be primarily engaged in: 1. purchasing entered in the profit and loss account, but raw materials or operating equipment The amount under item 9985 shall be recognised in the private account. for use in agriculture, forestry or transferred if income to item 201 and if fisheries, 2. selling products from its deficit to item 222 in form RF-1028 ’Tax Example: members agricultural, forestry or Tax-deductible electronic communication fisheries activities, or 3. processing return for limited liability companies etc. ’. expenses are entered under item 6995 products from its members’ agricultural or fisheries activities. Sole proprietorship transfer total profit to ‘Office expenses, electronic Equity reconciliation, cf. post 0421. communication expenses, postage etc.’ If In the case of these types of cooperative private electronic communication expenses enterprises, the aggregate item 9940 will Items 2051 – 2079 have been paid via the operating budget, show the total taxable business income These items are primarily intended for sole they are entered under item 2068. If an before any deductions for distributions to proprietorships, but must also be used by amount has been entered under item 7099 unit owners/members. This means that discretionary judgement by cooperative ‘Private use of a business vehicle’, the disbursements and/or provisions for back enterprises insofar as this is necessary in same amount is entered under item 2075. payments (bonus) and other distributions order to document correct reconciliation.

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