Tax and Duties
Advance Tax for Businesses
See how advance tax for limited companies is determined, paid, and amended when expected profits change.
2 min read · Translated from Norwegian. Read the original
Advance tax (forskuddsskatt) is tax paid before the final tax assessment is completed. For limited companies (aksjeselskaper) and other impersonal taxpayers, the amount is determined based on previous tax information and expected income.
When does a Limited Company (AS) Pay?
Skatteetaten (the Norwegian Tax Administration) sends advance tax demands in two instalments in the year following the income year. The current due dates and payment information are provided in the demand. The business must differentiate the company's advance tax from advance deductions (forskuddstrekk) and employer's national insurance contributions (arbeidsgiveravgift) related to employees.
If Profits Change
If the expected profit becomes significantly higher or lower than the basis, the company can apply to amend its advance tax. This reduces the risk of a large tax arrears (restskatt) or unnecessarily high advance payments. Use updated accounting figures and forecasts.
Supplementary Advance Tax
A company that realises its paid advance tax is too low can consider making a supplementary advance tax payment (tilleggsforskudd) by the deadline to reduce interest on tax arrears. Check the amount, deadline, and KID (customer identification number) with Skatteetaten (the Norwegian Tax Administration) before payment.
Accounting and Liquidity
Tax on profit is not the same as a regular operating expense in profit monitoring. Simultaneously plan the cash outflow in the liquidity budget. Reconcile payments against the tax account (skattekonto) and tax assessment (skatteoppgjør).
On Proffi
Proffi can show historical profit and tax figures where the data basis allows, but should not estimate a company's future tax as a public fact.
Source
Frequently asked questions
- Does an AS (Limited Company) Pay Tax in the Same Year as the Profit Occurs?
- Advance tax for an AS (limited company) is typically paid in instalments in the year following the income year.
- Can Advance Tax be Amended?
- Yes, the company can apply for an amendment when expected income deviates.
- Is Advance Tax the Same as VAT?
- No. VAT (MVA) is a consumption tax, while advance tax relates to income tax.