The client paid. How much of that money can you use?
The first inflows from activity give the feeling that the company is starting to operate. The problem arises when the entire received amount goes to current expenses, and then the tax payment deadline arrives.
In a one-person business in Norway, that is enkeltpersonforetak - ENK, you are responsible for paying tax on profit. The tax paid during the year is called forskuddsskatt. It is not automatically deducted from transfers received from clients. Skatteetaten
This guide applies to the owner of an ENK. If you run an AS, do not use it as instructions for settling a company.
Step 1. Distinguish revenue, profit and money in the account
Revenue from sales is not the same as profit.
In simple terms profit, that is profit, is revenue minus deductible business expenses. If the company charges MVA, revenue in the business accounts is shown without that tax. Skatteetaten
Example:
Item Amount Revenue from sales excluding MVA 20 000 NOK Tax-deductible expenses for this period 5 000 NOK Simplified profit before owner tax 15 000 NOK
Here we assume that the stated expenses are indeed deductible in the given period. Not every expense from the company account is such a deductible cost.
The account balance also does not automatically show profit. It may contain funds needed for taxes, unpaid liabilities or money deposited by the owner.
Step 2. Do not treat 40% as the applicable rate
Skatteetaten states 40% of profit as an indicative tax reserve. This is not a single statutory rate for all ENK owners.
The actual burden depends on your situation, among other things income from the business, other work, assets and other tax circumstances. Skatteetaten
For the profit of 15 000 NOK from the earlier example:
Reserve calculation Amount Profit used in the example 15 000 NOK Indicative reserve 40% 6 000 NOK Remaining part after setting aside the reserve 9 000 NOK
This is an example of cash planning, not a calculation of tax payable. The remaining amount does not automatically mean money available for private spending either — the company may have other obligations.
Instead of choosing a percentage based on a friend's experience, compare the reserve with Skatteetaten's current calculation and the results of your own business.
Step 3. Report the expected profit in skattekort
At the start of your activity, do not wait for the office to determine how much you will earn.
Altinn explains that receiving a demand to pay forskuddsskatt does not happen automatically if you have not reported the expected profit. You do this by updating your skattekort. Tax for sole proprietorships
Prepare a working summary:
expected revenues until the end of the year;
tax-deductible costs attributable to this year;
the resulting expected profit.
Then go to the Skatteetaten instructions on forskuddsskatt for ENK and open your skattekort from there.
In the business section - Næring - you enter the estimated profit. You have a single skattekort that is common to you as a private person and the owner of the ENK. Skatteetaten
The estimate should be realistic. It does not need to predict the future with the accuracy of a single krone.
Step 4. Keep track of installment deadlines
Standard deadlines for forskuddsskatt for individuals fall on:
Installment Basic due date First 15 March Second 15 June Third 15 September Fourth 15 December
Weekends and public holidays are taken into account. If the annual amount of forskuddsskatt is below 2 000 NOK, a single installment applies with the due date 15 June. Always check the due date on your payment document. Skatteetaten
If you use eFaktura, you will receive the payment document in online banking. In other cases, check your Altinn inbox or paper correspondence if you have opted out of electronic communication. Skatteetaten
Putting money aside in your own account is not yet payment of the tax. You also need to make a timely transfer to the tax office, with the correct payment details.
Step 5. Update forecasts when your business earns differently
There may be more or fewer assignments than you assumed. Costs may also change.
In that case, update the expected profit in your skattekort. Skatteetaten allows recalculating forskuddsskatt multiple times until 15 December; a later change for the current year requires contact via a form. For uneven incomes there is also the possibility to adjust the distribution of profit between quarters, under the conditions indicated by the authority. Skatteetaten
In practice: once a month compare the result from the start of the year with the previous forecast. If the difference is significant, check whether the installments still correspond to your situation.
Do not replace updating by independently ignoring a payment demand you received.
Step 6. Separate the tax reserve from MVA
Income tax and MVA are two separate tax settlements.
MVA is related to the taxation of sales, while the owner’s tax for an ENK concerns profit and their tax situation. The NOK 50,000 threshold related to MVA registration is not a general tax-free allowance for business income. Skatteetaten
If you charge MVA, account separately for the funds needed to settle it. Do not allocate the same amount at the same time to reserves for both taxes.
We described the registration rules here: MVA in Norway: when to add the tax and what to do after exceeding NOK 50,000?.
Step 7. Don’t confuse a private transfer with a business expense
The owner of an ENK does not employ themselves. Transferring money for personal use is not a payroll wage payment.
Altinn recommends organizational separation of business and personal finances, for example by using a separate account for business transactions. At the same time, the owner remains personally liable for the obligations of the ENK. Operating a sole proprietorship
A simple transfer between your own accounts does not create a tax-deductible expense. For tax settlement, income and the proper business expenses count, not how much money you decide to leave in the account. Tax for sole proprietorships
What to do if your advance payments were too low?
If, after the end of the year, you see that the tax paid is insufficient, you can check the possibility of an additional payment - tilleggsforskudd.
To avoid interest on the underpayment covered by the payment, the basic deadline is 31 May of the following year. If it falls on a weekend or public holiday, it is moved to the next working day. Use the correct KID and the account indicated by Skatteetaten. Skatteetaten
This is a different situation than an overdue forskuddsskatt installment. A delay in the current installment may cause the remaining advance for the entire year to become due and trigger collection actions. Skatteetaten
What to check before spending money from an invoice?
Before you spend income from an invoice on private purchases, check:
that you have covered the costs to carry out the assignment;
that you have taken MVA settlement into account, if applicable;
that you are setting aside funds for income tax;
that you know the nearest payment deadline;
that the expected annual profit in skattekort is still realistic.
A good practice is to regularly set aside a reserve, check the accounting and update the forecast. A mere percentage taken from each incoming payment will not replace these actions.
What next?
The next topic in our series is business costs in Norway: what can be deducted, how to document an expense and why a business purchase does not mean reimbursement of the entire amount spent.
Information verified: 18.10.2026.
