Tax for sole proprietorships (advance tax)

As the proprietor (owner) of a sole proprietorship, you are responsible for the enterprise's tax payments. The enterprise is not a separate taxable person.   
liten stabel med mynterThe proprietor pays advance tax for each period as soon as the income arises, and payment forms for advance tax will be sent to the proprietor four times a year.   

In order for you as a proprietor to receive payment forms for advance tax you need to apply for- or amend your tax deduction card/advance tax. When amending the tax deduction card you should declare your expected profits in the current year. Remember to also include other income, such as wages.

When the tax authority has received your application they will calculate how much tax you are to pay and you will receive payment forms from the tax collector in your municipality. How much tax you are to pay will depend on several factors, such as your total income (salaries, wages and business income) as well as the deductions you are entitled to.

If you have budgeted with a loss, the loss should not be included in your application for advance tax. The final loss will be declared on your tax return for income and wealth tax.
The same process applies if you have been issued advance tax but wish to amend your tax deduction. Under normal operation the advance tax will be calculated based on the profit for the previous year.

Amendments are submitted through skatteetaten.no.

If the proprietor's spouse works for the enterprise, he/she shall not receive wage. The enterprise's profit/loss can be divided between the two spouses. When the profit/loss is divided, an overall assessment of the spouse's work must be carried out. If the profit/loss is not divided between the spouses, the income will be assigned to the proprietor.
It is important to remember that money withdrawn by/transferred to the proprietor or his/her spouse from the enterprise is not deemed to be an expense for the enterprise. Such payment will not have a bearing on the enterprise's taxable profit.  
The profit/loss will be included in the calculation of personal income that forms the basis for the assessment of National Insurance contributions and bracket tax.

Siste endring på denne siden: 02.01.2017

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