Norway Tax Agency Clarifies Tax Treatment of Rental Activities Involving Related-Party Lettings

The Norwegian Tax Administration April 14 posted online Tax Appeals Board Decision No. SKNS1-2026-12, clarifying the tax treatment of rental activities involving related-party lettings. The taxpayer, an individual, owned four properties with five rental units, including one let to her daughter on a cost-covering basis, and reported the income while claiming deductions. The Tax Office reassessed the income, denied deductions, and classified the activity as business income with additional tax. On appeal, the Tax Appeals Board rejected the taxpayer’s appeal, finding that: 1) the letting to the daughter was not tax-exempt because she didn’t bear all the costs and the ...