As a shareholder in a Norwegian company (AS), you may wonder: Can I borrow money from my own company? The answer is yes, but as a general rule it does not pay off: under section 10-11 of the Norwegian Tax Act, a loan from the company to a personal shareholder is taxed as dividend.
What is a shareholder loan?
A shareholder loan is when an owner borrows money from the company. It must be a genuine loan, not hidden salary or dividends. However, under section 10-11 of the Norwegian Tax Act (in force since 7 October 2015), such a loan is as a general rule taxed as dividend for the shareholder — even if it is documented with:
- A formal loan agreement must be signed
- The loan must have a market interest rate
- A clear repayment plan must be in place
Short-term vs. Long-term
- Short-term loan: Repayable within 12 months
- Long-term loan: Repayable after more than 12 months
The loan is taxed as dividend as soon as it is taken out. The only exception is if the total loan balance is under NOK 100,000 and it is repaid within 60 days.
Risks and responsibilities
- If not documented correctly, Skatteetaten can treat it as dividends or salary
- You may face up to 37.84% tax
- You may become personally liable
- May lead to penalties or audit problems
Is it worth it?
Yes, in specific cases:
- If the company has enough liquidity
- If you’re planning to repay with interest
- If you’re working with a tax advisor
But it’s not recommended for frequent or large withdrawals.
If you don’t repay:
- It may be taxed as income
- You may face penalties or personal liability
- It can hurt your company’s credibility
Tip: Always consult your accountant before borrowing from your company.