Content
About the statistics
Definitions
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Name and topic
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Name: Income and deductions for companies
Topic: Establishments, enterprises and accounts
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Responsible division
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Division for Accounting Statistics and Business Register
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Definitions of the main concepts and variables
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Assessable incomes consist of entrepreneurial income, capital income and received group and stockholder contribution.
Entrepreneurial income results from the activities of the enterprise, and is estimated from the income statement. It is transferred to the tax return and included in the calculation of ordinary income.
Deductions in income consist of entrepreneurial deficit, capital costs, correctional income from previous years, deduction for previous year’s deficit, paid group contribution and other fiscal deductions.
Deduction for previous years' deficit is the deduction for tax-related losses of previous years. Such tax-related losses may be carried forward for up to 10 years, and are deducted from the assessable income of subsequent years.
Paid group and shareholder contributions are tax-deductible transfers to enterprises in the same group. As of 2005, shareholder contributions are no longer deductible.
Ordinary income consists of assessable incomes less income deductions. Ordinary income is the basis for assessing income tax.
Tax position. Non-personal taxpayers with assessed tax or tax deduction.
Opening and closing balance, tax-related values. Under the Taxation Act, fixed assets may be depreciated, i.e., a tax-related deduction is calculated for wear and tear of fixed assets. The opening amount for depreciable assets corresponds to the closing amount from the year before. Additions are made for investments and improvements and deductions for sales of fixed assets. Deductions are furthermore made for the year’s tax-related depreciation, and the result is the closing amount, which is the tax-related value of the fixed assets at the end of the year.
This year's depreciation is the tax-related deduction for wear and tear of fixed assets that are depreciable under the Taxation Act. Tax-related depreciation may be different from depreciation based on business principles.
Depreciation group . In the depreciation statistics for limited companies, depreciation of capital assets is broken down by depreciation group. The depreciation groups are defined in Section 14-41 of the Taxation Act. In addition to balance depreciation, limited power companies have substantial assets depreciated according to Taxation Act Section 18-6. Shipping companies subject to special rules for shipping companies under Taxation Act Sections 8-10 to 8-20 do not have balance depreciation.
From 1992 to 2004 the survey has given statistics on the split-income model for active shareholders and the calculation of personal income. Because of the introduction of new regulations in the fiscal year 2006, the split-income model was discontinued as of the fiscal year 2005, and the fiscal year 2004 was the last year personal income was calculated.
Split-income model, i.e. the rules for calculating personal income from business. The split-income model is used for active shareholders of limited companies. In brief, the model splits an enterprise's income into two parts, capital income and personal income.
Split-income enterprise (limited company) is a company where the owners shall have calculated personal income from the business. The criteria for whether or not the split-income model is to be used are given in the Taxation Act.
Active owners/shareholders are persons who meet the owner and activity requirements of the split-income model, and thus should have calculated personal income from the enterprise.
Calculated personal income allocated to the active stockholders of a limited company is calculated on the basis of the companies’ entrepreneurial income corrected for capital items, deductions for calculated capital yield, deduction for wages and salaries and negative personal income. National Insurance premiums and surtax are calculated on the basis of personal income and other personal income of the active stockholder.
Capital yield basis is a valuation of the assets of a business. The portion of the income attributed to return on invested capital is calculated from the capital return basis.
Deduction for wages and salaries. Calculated personal income is reduced by a deduction for wages and salaries if wage earners are employed by the business.
Utilized negative personal income from previous years. Negative personal income may be carried forward for up to 10 years, and is deducted from positive estimated personal income in subsequent years.
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Standard classifications
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Classification of industry is in accordance with the revised Norwegian Standard Industrial Classification (SN94), which is based on the EU industrial standard NACE Rev. 1 and the UN industrial standard ISIC Rev. 3. As of the statistics covering 2002, the revised standard SN2002 is used. This standard is based on the EU industrial standard NACE Rev. 1.1.
For companies that engage in several industries, the entire business will be placed under the business that contributes the most to the overall added value.
Institutional sector classification, which is based on the United Nations System of National Accounts, or SNA 2008, and the EUs European System of national Accounts, or ESA 2010, is used to classify the corporations’ incomes and deductions into institutional sectors. The Standard for institutional sector classification applies as from January 1, 2012 and, on the basis of grouping units with the same economic functions, divides the Norwegian economy into sectors.
More information is found at Statistics Norway’s website under Metadata and database for standard classifications