Tax-Free Gift Allowance in Norwegian AS

Optimize Your Limited Liability Company’s (AS) Tax Benefits: The 10,000kr+ Tax-Free Gift Allowance

As a small business owner operating an AS in Norway, there is an excellent way to optimize your company’s finances. One strategy I’ve found particularly useful is the 10,000kr tax-free gift allowance. This allowance isn’t just for employees; as a business owner, you and your loved ones can benefit as well.

How does the gift allowance work?

The Norwegian tax law allows you to give a 5,000kr tax-free gift per AS company to both employees and board members. Even if you’re the only employee in your company, you can still take advantage of this by appointing a family member or spouse as a passive board member. They don’t need to be actively involved in the business, but they can still receive this gift.

If you have multiple AS companies (like a holding company and an operating company), you can double the benefit, receiving 5,000kr from each company.

Who Qualifies

  • Board Members: Any active or passive board member of an AS company is eligible.
  • Employees: You can also give this gift to employees of your AS company.

Key Advantages

  • Tax-Free Income: Receive 5,000kr tax-free from each AS company you own. For example in an AS holding structure (one holding and one operating AS) you can give away 5,000kr per AS. If you put someone else on the board, you can give them the same amount.
  • Significant Savings Over Time: With multiple companies, accumulate substantial tax-free income over the years.
  • Corporate Tax Savings: Your company also saves on taxes, further enhancing your financial gains.

How do I add a board member?

In order to qualify for a 5,000 kr gift allowance, the person should be on the board. To do that, go to the Altinn government portal and login to this form. Enter your 11-digit national identity number and surname. Select your role and click «Legg til». Important: Ensure your surname is entered exactly as it appears in the National Registry. In case of multiple surnames (e.g., Smith Jones) you should enter only the last name (Jones). If you have a hyphenated surname (e.g., Smith-Jones), please enter both names (Smith-Jones). Finish the form and the board member is added. Make sure to inform your accountant about the change.

Limitations

The main limitation is that the gift must be non-monetary, meaning you cannot just hand out 5,000kr per board member per company you own.

Further reading:

Norwegian tax authorities

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