Tax return and annual accounts


Tax return and annual accounts

by ecovisnorway

by ecovisnorway

Foreign companies operating in Norway have many compliance issues to worry about, and the company tax return and annual accounts are two more reports to keep in mind. ECOVIS have the expertise to assist your company with accounting and reporting.

What is the tax return and the annual accounts?

The tax return is a company’s tax assessment for the previous year, and it shows how the taxable profit has been calculated . Together with the annual accounts, it gives a complete overview of status from last year, including profit/loss and balance statement. 

Who should submit tax return?

All taxable businesses must submit a tax return including Norwegian branch of a foreign company (NUF). Sole proprietorships and partners in shared liability partnerships must submit form RF-1030 Tax return for self-employed persons etc. Private limited companies, cooperatives and other non-personal taxpayers must submit form RF-1028 Tax return for corporations. The taxpayer is responsible for reporting the taxable income in the tax return, which will be the basis for the tax assessment. The due date for the tax return is the 31st of May. 

Who should submit the Annual accounts?

If the enterprise is required to prepare accounts, the enterprise must submit annual accounts and any annual reports to the Register of Company.

Annual accounts must be prepared in accordance with the provisions of the Accounting Act and associated regulations, as well as generally accepted accounting practice. Separate simplified rules have been drawn up for generally accepted accounting practice in small enterprises. The annual accounts should be filed by the 31st of July. 

A complete set of annual accounts must include the following:

  • Income statement
  • Balance sheet
  • Notes
  • Cash flow analysis (not small enterprises)
  • Audit report (if subject to the audit obligation)

What if I submit the tax return too late?

You may be required to pay additional tax if you do not provide accurate and complete information in your tax return. If you fail to meet the deadline, you risk receiving an enforcement fine. If you still do not submit the information, we may impose a non-compliance penalty.

For the tax return, the rate is half a court fee per day. The maximum limit is 50 court fees. The maximum amount is NOK 58,600.

What is general meeting?

The general meeting is the supreme authority in a company. An ordinary general meeting must be held within six months after the end of each financial year. The Board issues notice to convene the Annual General Meeting, and the shareholders have a right to attend and cast their votes.

The board shall summon shareholders to the general meeting and prepare a proposed agenda in accordance with the applicable provisions laid down in the law and the articles of association. The summons must be sent by the board no later than one week prior to the general meeting. Any attachments to the summons must also be made available to the shareholders no later than one week prior to the general meeting, so that they have sufficient time to familiarize themselves with the matters before they are considered.