Norwegian poker-taxes

[LordMushroom2]

I have the impression that a poker-player in Norway has to make himself a "selvstendig næringsdrivende" when he passes NOK 10000 in profits per year. He then has to pay 28% in taxes on his profits.

1) Is this true?
2) Do you have to pay taxes on the first NOK 10000 in profits?
3) Do you have to pay taxes on the first NOK 10000 in profits in future years?

Say before being a "selvstendig næringsdrivende" he went from NOK 5000 in profits to NOK 50000 due to an MTT-win, and realizes he now must become a "SN".

4) Must he pay an extra high tax on his current profits because he was not an "SN" when he made his post NOK 10000 profit?

5) Must he also pay extra high taxes on profits made while in the process of becoming an "SN"?

6) Does he get away with paying only 28% tax as long as he becomes an "SN" that same calender-year?

7) Anything else I should know about taxes?

[KPL]

Link

[mute]

Um, wow, am I reading this correctly? Every time you win a pot at a size over more than 10000 NOK it's taxable, but you can't deduct your loses?

[Soulman]

LordMushroom,

you're not entirely correct.

If you read the link KPL posted, you'll see that to get taxed as a "selvstendig næringsdrivende" you have to fulfill the following criteria:

* the activity has to last for a "while" (not defined)
* has to be of a certain "scope" (not defined)
* will lead to profit
* the tax payer runs the "business" with all risks and costs himself

As you can see, this is very much an undefined area. Another Norwegian player I know asked the tax authorities about this in person, but got confused and non-concrete answers.

In general, taxing single MTT wins is just ludicrous. The only way you should tax MTT winnings would be as a "selvstendig næringsdrivende", which also means you could deduct travel expenses, computer upgrade expenses etc, as per § 5-30 of the Norwegian tax law.

The 10.000 NKR limit is just lame and goes to show how little Norwegian authorities understand about poker. Under this law, MTT players would pay way more taxes than someone who plays SNGs or cash games, even though the SNG/cash gamer may earn more than the MTT player in the long run.

You do not have to tax your earnings the moment you pass the 10.000 NKR limit either - to tax earnings on winnings besides MTTs, the limit is arbitrary and really up to you. I would expect that the different tax offices would come up with wildly varying responses if you asked. Some would probably say that any earnings in excess of 10.000 NKR would be taxable, while others would say 100.000+.

All in all, if you win a lot and want to pay taxes, declaring as a "selvstendig næringsdrivende" is the way to go. Be aware that this requires you to register in the "Brønnøysundsregister" and keep detailed recordings of your winnings/expenses. This is probably what I will do if I continue to win as much as I currently do (on MTTs)...

[Soulman]

[ QUOTE ]
Um, wow, am I reading this correctly? Every time you win a pot at a size over more than 10000 NOK it's taxable, but you can't deduct your loses?

[/ QUOTE ]
You can deduct your losses in that particular hand/tournament. Meaning you can possibly deduct your blinds in a cash game (lolz) and your buy-in in that particular tournament in an MTT/SNG...