The 2005/2006 tax reform

 Limited liability companies, unlimited liability companies (general partnerships/companies with shared liability) and sole proprietorships

Taxation of limited liability companies, unlimited liability companies (general partnerships (ANS)/companies with shared liability (DA)) and sole proprietorships. Effects of the reform for shareholders:

For shareholders, under the shelter method, dividends on shares, etc. and tax on gains on the sale of shares, etc. in excess of a shelter deduction are taxable. Read about the new rules under ”The Shareholder Modell” http://www.skatteetaten.no/en/Artikler/2004/The-shareholder-model/.

 
Effects of the reform for participants in general partnerships, limited partnership companies, shipping partnerships, internal partnerships and sleeping partners:
Following the introduction of the shelter method, ordinary income will consist of the participant’s share of the company’s profit plus an additional amount. The additional amount is calculated on the basis of what the participant has received from the company net of the tax payable on the participant’s share of the company’s profit and a shelter deduction. Personal income will hereafter only consist of special remuneration for work performed for the company. Read more about the new rules in this brochure on General Partnerships.
http://www.naringsetaten.oslo.kommune.no/getfile.php/n%C3%A6ringsetaten%20(NAE)/Internett%20(NAE)/Dokumenter/Servicekontoret/Informasjonsmateriell/Ansvarlig%20selskap_Eng.pdf

Effects for sole proprietorships:
For sole proprietorships, under the shelter method, part of the income from self-employment is sheltered from being included in computed personal income. Another consequence is that more self-employed persons than before will have computed personal income. Read more about the new rules in this brochure on sole proprietorships: http://www.naringsetaten.oslo.kommune.no/getfile.php/n%C3%A6ringsetaten%20(NAE)/Internett%20(NAE)/Dokumenter/Servicekontoret/Informasjonsmateriell/Enkeltmannsforetak_Eng.pdf

The exemption method:
Limited liability companies are not subject to tax on capital gains and dividends accruing to them.