Skatteetaten Central Office
Foreign Tax Affairs
Companies which are obliged to complete
RF-1046 Extract of Accounts
The form Extract of Accounts has to be filed by
foreign companies and other entities that are
tax assessed by the Central Office - Foreign Tax
Affairs, registered with tax municipality 2312.
The form must be submitted as an attachment
to the tax return.
Enterprises obliged to keep accounts are
however required to submit the same forms as
resident tax payers in addition to the Extract of
Accounts form.
Obligation to submit and document controlled
transactions (transfer pricing)
General filing requirements of inter-company
transaction according to the Assessment Act
section 4-12 is considered fulfilled by correct
completion of the Extract of Accounts. The
filing requirement is also due between
Permanent Establishment and Affiliates.
If a company is filling in Extract of Accounts
page 2, Specification of costs, it does not need
to fill in form RF-1123 Controlled transactions
and accounts outstanding.
Companies and other entities subjected to the
filing requirement are obligated to prepare
written documentation as a basis for evaluating
prices and conditions in the controlled
transaction between related companies. The tax
authorities may require the documentation
submitted within 45 days. More information
regarding these requirements to documentation
and exception to the obligation can be found in
the Ministry of Finance’s regulation of 7
December 2007 no 1369.
Calculation of the tax liable result
The form Extract of Accounts shows the tax
liable result for the company or the enterprises.
Consequently, total income item 7 cf item 25
and total costs item 19, 20 and 23 cf item 26
must be tax related figures.
The timing of income and expences must be
made according to the “realisation principle”.
Page 1
Accounting period
State when the accounting period starts and
ends (dates) here, generally 01.01. to 31.12..
Other periods may occur when the work starts
or ends during the year. Dates should be stated
with six digits DD.MM.YY. If the company has
deviating accounting year the actual period
should be stated, e.g. 01.06. to 31.05.
Affiliated/associated companies
By affiliated/associated companies as used in
the Extract of Account we mean:
1) Companies that either directly or
indirectly own/control at least 50 per cent
of another company.
RF-1046 E
Guidelines to completing the Extract of Accounts 2013
Approved by the Directorate of Taxes for income year 2013
2)
Two companies whereby both, with at
least 50 per cent, are owned/controlled
directly or indirectly by the same
person/company or group of companies.
Contract information
Any internal project number must be recorded
in addition to the contract number.
Contract duration means the period from when
the work relating to the contract began, until
the contract completion date, including any
work performed which is not subject to
Norwegian tax legislation.
State whether the work on each contract has
been performed

onshore (L),

offshore (S) or

both onshore and offshore (L/S).
The period(s) when the work was carried out on
the Norwegian Continental Shelf/ in Norway
must be entered in a separate column. In the
box ‘Amount’ enter the total sum related to a
contract wholly or partly carried out in Norway
or on the Norwegian Continental Shelf. Please
note that the total sum is required, regardless of
whether parts of the total sum are not taxable
in Norway, cf. item 1 on page 2.
Page 2
Income
Item 1 Goods and services on the Norwegian
Continental Shelf/in Norway invoiced to
principal during the accounting year
Enter here the total income invoiced which
relates to activities wholly or partly carried out
in Norway or on the Norwegian Continental
Shelf. This means that any income, also
deferred income, relating to the provision of
services abroad, and which are connected to
activities carried out on the Norwegian
Continental Shelf/in Norway, must be recorded.
Invoiced amount should be without VAT.
Furthermore, all income received for goods and
services supplied on the Norwegian Continental
Shelf/in Norway must be included, irrespective
of whether Norwegian tax legislation or any tax
convention states that such income shall not be
taxed in Norway.
Item 2 Adjustment for income which is not
taxable to Norway
Income included in item 1 but which, in
accordance with Norwegian tax legislation or a
tax convention shall not be taxed by Norway,
is to be recorded here as a deduction. The
amount has to be specified in the notes section,
page 3 or in a separate sheet.
Item 3 Work-in-progress invoiced at the
beginning of the accounting year and Work-inprogress invoiced at the end of the accounting
year
Item 3a and 3b concerns companies who apply
the Contract Completion Method to fabrication
contracts. By the term fabrication contract we
mean a contract to produce or manufacture
something, to construct plants/installations etc
at a fixed price and the company who apply the
Contract Completed method has profit
responsibility for the contract. Long-term
fabrication contracts may be divided into
several independent part-contracts. In such
cases a settlement for tax purposes must be
made for each individual part-contract.
Work-in-progress invoiced at the beginning of
the accounting year (item 3a) is the invoiced
amounts relating to unfinished fabrication
contracts at the beginning of the accounting
year. Work-in-progress invoiced at the end of
the accounting year is the sum of the invoiced
amounts relating to unfinished fabrication
contracts at the end of the accounting period
(item 3b). This item will ensure that income
from fabrication contracts is taxed in the year
that the contract is completed. See examples
below.
Item 4 Adjustment for accruals (earned
income)
Enter in item 4a income earned during the
accounting year which has not been included in
the amounts recorded in items 1 or 3. In item
4b enter income earned outside the accounting
year which is included in item 1. This includes
income earned before or after the accounting
year even though invoicing took place within
the accounting year and thus has been included
in item 1. See examples below.
Item 5 Financial income
Enter here any financial income which is
connected to taxable activities on the
Norwegian Continental Shelf/in Norway.
Item 6 Other income
Enter here any taxable income relating to
activities on the Norwegian Continental Shelf/
in Norway and which are not included in the
items above, including net profit from
Participant statement showing income and net
worth in a partnership with shared assessment,
RF-1221. The amount has to be itemized on a
separate sheet.
Item 7 Total income
Item 7 will indicate what portion of the total
income is taxable in Norway. This amount shall
also be recorded under item 25.
Example of recording income when the contract
completion method is used and a part of the
income is not taxable to Norway:
X Ltd has carried out a fabrication contract
(contract completion method) on the
Norwegian Continental Shelf. The contract
began on 01.01. year 1 and was completed on
01.05. year 2. The invoiced amounts were 120 in
year 1 of which 20 is not taxable to Norway,
and 180 in year 2 of which 30 is not taxable to
1.
180
Goods and services on the
Norway.
Norwegian Continental Shelf/
in Norway invoiced to
The Extract
of Accounts
principal
during thefor year 1 should be
completed
as follows:
accounting
year (30 + 150)
4a.
1.
Adjustment for accruals
Invoiced
to principals
within
(earned income):
Income
the
accounting
year,
for
earned
within the
accountgoods
and
services
delivered
ing year
and
which is
not
on
the Norwegian
included
in item 1 Continental
or item 3
Shelf/in Norway
2.4b.
Income earned
outsidewhich
the
Adjustment
for income
accounting
year
which is
is
not taxable
to Norway
included in item 1
30
-  20
7.
3a.
TOTAL income invoiced at
Work-in-progress
the beginning of the
Part of income
accounting
yearrelating to
Norwegian Continental Shelf
Work-in-progress invoiced at
the end of the accounting
year
190
0
7.1
3b.
+
+
40
120
190

100
7.
TOTAL income
0
7.1
Of this Norwegian
Continental Shelf
0
Tax deduction only applies for costs which can
be related to income which is taxable to
Norway.
Direct costs (items 8 - 18)
Enter here costs which are related to the
resources utilized in the process of carrying out
each contract which is taxable to Norway and
which has accrued in the period when the
resource can be exclusively related to such
contracts. Other deductible costs must be
entered under indirect costs, unless they relate
to depreciation which is entered under item 20.
Item 8a Direct related wages, salaries and other
remuneration
Enter here all kinds of pay, the taxable portion
of any payments-in-kind received for services
rendered, premiums paid for annuity assurance
and endowment assurance where the employee
is the beneficiary, as well as premiums paid into
collective annuity schemes.
If the company has a deviating tax year,
enclose reconciliation for salaries related to the
calendar year.
The form RF-1022 Salary and pension cost
shall be returned as an attachment to the tax
return. Potential differences between
deductions claimed in item 8a and RF-1025
item 4.7, which is not accounted for in
RF-1022, must be explained in a separate
enclosure.
An employee’s exemption from the Norwegian
National Insurance Scheme also entails
exemption from payment of employer’s
contribution. It is therefore essential that
1.
Goods and services on the
Norwegian Continental
Shelf/ in Norway invoiced
to principal during the
accounting year
2.
Adjustment for income
which is not taxable to
Norway
-
180
30
The following amounts were invoiced for this
contract in year 2 and 3, is of relevance for the
completion of Extract of Account for year 2:
3a.
Work-in-progress invoiced
at the beginning of the
accounting year
+
100
01.01. - 31.01. year 2 = 30
01.02. - 31.12. year 2 =150
01.01. - 31.01. year 3 = 40
3b.
Work-in-progress invoiced
at the end of the
accounting year

0
7.
TOTAL income
250
7.1
Part of income relating to
Norwegian Continental
Shelf
250
The Extract of Accounts for year 2 should
therefore be completed as follows:
Deductible costs
applications for employees’ exemption from the
National Insurance Scheme are made as early
as possible, since no exemption from the
Page 2
Item 10a Subsistence allowance (per diem)
Enter here costs relating to employees’
subsistence allowance, and which have not been
included under item 8a. If the business has met
such costs for consultants/subcontractors or
their employees, the costs shall be entered
under either item 16a or 16b.
Item 10b Travel costs
Enter here travel costs which have not been
included in item 8a or 10a. Costs met for
consultants/subcontractors or their employees
shall be entered under either item 16a or 16b.
Item 11b Costs of goods sold
Enter here the costs of goods which are sold.
Item 9a Employer’s contribution to the
Norwegian National Insurance Scheme
Employer’s contributions to the Norwegian
National Insurance Scheme are deductible for
the employer to the same extent and in the
same way as the pay it relates to.
Example of recording time differentials:
Y Ltd carried out activities by providing
services on the Norwegian Continental Shelf in
the period 01.01. year 1 - 31.12. year 2.
Invoicing is based on the total number of hours
worked and is carried out on the 15th of the
following month. Y Ltd is entitled to
remuneration as the work progresses.
Item 9b Employer’s contributions to foreign
Social Security
Enter here contributions abroad and which
relate to direct salary relevant to taxable
income in Norway.
Item 11a Materials and equipment consumed
Enter here costs relating to materials and
equipment which are not compulsorily
capitalized.
Item 8b Other direct related salary and
remuneration
Enter here any other pay and remuneration
relating to work which was not carried out in
Norway or on the Norwegian Continental Shelf,
but is directly related to taxable assignments
carried out there.
For year 2, the form should be completed as
follows:
obligation to pay contributions to the National
Insurance Scheme will be granted before
Central Office - Foreign Tax Affairs has
received notification of the employee’s
exemption from The National Office for Social
Insurance International, P O Box 8138,
NO-0033 Oslo.
Item 12 Repairs and maintenance
Enter here costs relating to repair and
maintenance of business assets which are used
in the activities. Work which results in the
business asset being in a better condition than
previously is not to be considered as
maintenance. The costs for such work are
considered an accrued cost and shall be
capitalized. If the company has received
payment from an insurance policy etc. to cover
any repairs, the amount received must be
deducted before the cost is entered. Enclose a
separate itemization of the calculations as well
as information on any insurance payments due.
Provisions for future repairs and maintenance
are not deductible.
Item 13 Rental costs
Enter here rental costs for equipment which the
company utilizes purely on a rental contract.
Rental costs for equipment hired from
subcontractors who mobilize personnel to the
Norwegian Continental Shelf/in Norway in
connection with this shall be entered in their
entirety under item 16a.
In the case of financial leasing the leaser (user)
of the equipment is considered to be the owner
for the leasing period and this will be treated as
a purchase, with payment of the purchase price
made in instalments. The purchase price is the
total lease price during the leasing period,
minus a proportion of the leasing price which
must be considered as interest and any assigned
residual value. As with normal purchase, the
purchase price is capitalized and depreciated
like any other purchase, cf. item 20.
Item 14 Insurance
Enter here insurance expenditure in connection
with the activities on the Norwegian
Continental Shelf/in Norway.
Item 15 License premiums, royalties
Enter here costs of licenses and royalties in
connection with individual activities on the
Norwegian Continental Shelf/in Norway.
Item 16a Consultants/subcontractors and third
parties that have performed work on the
Norwegian Continental Shelf/in Norway
This item includes all costs relating to such
consultants and subcontractors.
Rental costs for equipment hired from
subcontractors who mobilize personnel to the
Norwegian Continental Shelf/in Norway in
connection with this shall also be entered in
their entirety under this item. If the company
has a deviating tax year, please indicate on a
separate sheet those costs which relate to
individual subcontractors for the calendar year.
Item 16b Other consultants/subcontractors
Enter here costs which relate to consultants/
subcontractors where the work was not
performed on the Norwegian Continental Shelf/
in Norway.
Item 17 Other direct costs
Enter here direct costs which are not entered
under the other items, including net loss from
RF-1221 (partnership). Costs relating to
servicing and guarantee arrangements should
also be recorded here. Provisions for guarantee
and servicing costs are not tax-deductible.
Item 18 Capitalized costs: Work-in-progress at
the beginning of the accounting year and Workin-progress at the end of the accounting year
This item concerns companies who apply the
Contract Completion Method to fabrication
contracts. By the term fabrication contract we
mean a contract to produce or manufacture
something, to construct plants/installations etc
at a fixed price and the company who apply the
Contract Completed method has profit
responsibility for the contract.
method. Documentation of the basis for
depreciation must be enclosed the tax return.
Companies not resident in an EEA country
have to calculate the depreciation according to
the straight-line method, unless the relevant
asset is expected to be used here for at least four
years without interruption, in which case the
declining balance method can be applied, cf. the
Tax Act sections 14-62 and 14-63.
Depreciation rates must be in accordance with
the regulation of 19th November 1999 no. 1158
section 14-62. There is a separate box on page 4
of the Extract of Accounts for detailing
straight-line depreciation. See also the
comments below.
Item 21 Indirect costs
Enter here costs which are distributed to the
permanent establishment by an indirect
method.
The distribution of indirect costs shall show
which costs are included as well as the
distribution principles employed. There shall
also be an explanation of the distribution
principles used, including how charges/credits
are distributed amongst the individual
companies or associated companies.
Item 22 Financial and interest costs
You may enclose information on how financial
and interest costs are calculated .Interest on
assessed tax is not deductible on the income
assessment and shall not therefore be included
here.
Item 27 Profit/loss
Profit for limited companies is recorded under
item 201 of the tax return RF-1028, and profit
from offshore activity under item 210. Loss
from activity onshore is to be recorded under
item 222 of the Tax Return, and from activity
offshore under item 225.
The costs relating to such contracts shall be
entered as they are incurred in the relevant
boxes of the Extract of Accounts. Work-inprogress at the beginning of the accounting
year will be the sum of direct costs relating to
fabrication contracts which are not complete at
the beginning of the accounting year (item 18a).
Work-in-progress at the end of the accounting
year will be the sum of direct costs relating to
fabrication contracts which are not complete at
the end of the accounting year (item 18b). The
entry in item 18a and 18b will ensure that the
compulsorily capitalized proportion of the costs
will not be taken as a deduction until the
contract is completed and recorded as income,
cf. item 3.
Losses carried forward
Losses carried forward from previous years
must be stated in the tax return RF-1028, cf.
item 232 and item 280 to item 285, or as an
attachment to the Extract of Accounts.
Item 20 Depreciation
Assets used in activities taxable to Norway and
owned by a company resident in an EEA
country must be depreciated by the declining
balance method. The depreciation must be
calculated proportionally for that part of the
year the asset became subject to/ceased to be
subject to the Norwegian tax jurisdiction. The
basis for depreciation will be determined from
historic cost reduced by the owner’s maximum
depreciation value up to 1 January the year the
asset is in the Norwegian tax jurisdiction.
If such transfer is made, the form RF-1109
have to be filed as an enclosure to the tax
return.
Form RF-1084 Depreciation has to be
submitted when using the declining balance
Item 28 Transfer of assets and financial
obligations out of Norwegian jurisdiction (Exit
taxation)
Capital gain tax may be levied due to the
transfer of assets and financial obligations out
of Norwegian jurisdiction. Correspondingly,
losses may be deducted. Exit taxation is
applicable, for instance, when assets are moved
out of Norway, or the business’ tax liability to
Norway is ceased.
Page 4
Boxes which refer to straight-line depreciation
cf. item 20.
Companies and other entities resident in the
EEA must use the declining balance method for
calculating depreciation for assets used in
Norwegian taxable activity. Depreciation
calculated after the declining balance method
has to be specified in form RF-1084
Depreciation and not in item 20 in this form.
Page 3
Item 20 must be completed if deductions are
claimed for depreciation of business assets
which shall be depreciated in accordance with
the straight-line method pursuant to the Tax
Act section 14-62.
Groups for straight-line depreciation are:
Group a: Office equipment, tools, office
accessories etc.
Group b: Mainframe computers, servers and
similar computer systems, equipment,
inventory, vehicles, road trailers etc., mobile
and fixed equipment and material provided
that the cost of the business asset is less than
NOK 2 million.
Group c: Mobile and fixed equipment and
material , including diving equipment, welding
plant, cranes, pumps, compressors etc. provided
that the cost of the business asset is at least
NOK 2 million.
Group d: Aircraft, helicopters etc., special
vessels used in the oil sector such as diving
vessels and ROVs.
Group e: Ships and vessels which do not belong
in group d, including passenger ships and
freighters built for special trade, pipe laying
vessels, rigs, flotels and barges.
Item 20.04 Type of business assets involves a
short description of the asset in question pipe
laying vessel, drilling rig, computer equipment
etc.
Capitalized costs related to improvements shall
be depreciated separately over the asset’s
remaining lifetime. If these improvements are
so extensive that the asset appears to be new,
both the improvement costs and the residual
value of the original asset must be recorded in a
new column to be depreciated together. The
figure in the new column will then be
depreciated as if the asset were new.
The dates when the asset became subject to/
ceased to be subject to Norwegian tax
legislation as well as the total number of days
on the Norwegian Continental Shelf/in Norway
shall only include those dates and the number
of days which apply to this year’s depreciation.
Item 20.17 Hypothetical depreciation outside of
Norwegian tax legislation means estimated
depreciation in accordance with Norwegian
regulations on straight-line depreciation for
periods the business asset has not been subject
to Norwegian tax legislation.
Item 20.18 Residual value at the end of the
year but before depreciation means the
remaining part of the historical cost price after
deductions for previous year’s actual
depreciation whilst subject to Norwegian tax
legislation, hypothetical depreciation whilst
outside of Norwegian tax legislation.
Under item 20.20 Total depreciation this year,
enter this year’s depreciation pursuant to the
Tax Act Section 14-62, as if the business asset
were subject to Norwegian tax legislation for
the entire year.
Item 20.22 Residual value at the end of the
accounting year is arrived at after deductions
for the year’s actual and hypothetical taxrelated depreciation.
Signature
The form must be signed by the taxpayer/board
of directors or chairman. cf. the Assessment Act
section 4-5 no. 5.
If the company is obliged to have its accounts
for the Norwegian activity audited by a
Norwegian auditor, the form must be signed by
the auditor.
Further information and forms may be
obtained from:
Skatteetaten Central Office - Foreign Tax Affairs
P.O. Box 8031
N-4068 STAVANGER
NORWAY
Tel: +47 51 96 96 00
Page 4
Fax: +47 51 96 96 96
E-Mail: sfu@skatteetaten.no
Information and forms are available at:
www.taxadministration.no and
www.taxnorway.no