Ownership and Control
Tax on Share Gains
Learn how gains and losses on shares are calculated for individual shareholders, and the role of acquisition cost and shielding.
2 min read · Translated from Norwegian. Read the original
When an individual shareholder sells shares at a gain, the gain is generally taxable. Losses can normally be deductible. The rules for companies are different and may, among other things, be affected by the exemption method.
How Gain or Loss is Calculated
The starting point is the consideration received from the sale minus the share's acquisition cost and relevant expenses. The acquisition cost is normally based on what the shareholder paid, adjusted for events such as capital changes, inheritance, gifts, splits or reverse splits. Accurate historical data is crucial.
Shielding Deduction (Skjermingsfradrag)
Unused shielding (Skjermingsfradrag - a tax deduction to reduce taxable share income) on the sold share can reduce taxable gain according to the rules in the shareholder model. Shielding cannot create or increase a deductible loss. Check information per share.
Uplift and Rate
Skatteetaten (the Norwegian Tax Administration) uplifts share income and deductible losses by an annual factor before tax is calculated using the rate for general income. The effective percentage may change between income years. Therefore, use the official rate for the correct year, not a static figure in an evergreen article.
Reporting
Much of the Norwegian share information is pre-filled, but the shareholder must check the acquisition cost, realisation, expenses, and shielding. Foreign shares and certain transactions may require more manual documentation.
On Proffi
Proffi can display company and ownership data from authorised sources, but personal acquisition cost and tax position are private information. Calculators must clearly state assumptions and income year.
Source
Frequently asked questions
- Do companies pay tax in the same way as individuals?
- No. Companies may be subject to other rules, including the exemption method.
- Can losses on shares be deducted?
- For individual shareholders, realised losses can normally be deducted according to current rules.
- What tax rate applies?
- The rate depends on the income year. Check Skatteetaten (the Norwegian Tax Administration)'s updated rates page.