Cannot pay tax and VAT – payment plan or bankruptcy?
If the company has filed correct returns but has no money when they fall due, that is first and foremost a cash problem. It does not automatically mean the company is insolvent. But the board should establish quickly whether the problem is temporary – or whether continuing to trade could cause creditors fresh losses.
Start by finding out how big the problem actually is
Before applying for a deferral, the accounts should be up to date enough for the board to see what is in the bank accounts, which customer payments are genuinely expected, which taxes and duties are already overdue, salary and advance deductions, supplier debt, loan repayments, available credit, and what payments are coming in the next few weeks. A short cash flow budget is often the best place to start.
Can the business get a payment plan with Skatteetaten?
Yes, but the conditions are strict for trading businesses. From 1 January 2026 payment plans are governed by the new Collection Act. Skatteetaten's standard criteria for trading businesses as at 2026 include total liabilities under NOK 100,000, a maximum of four months' deferral, reporting obligations having been met, advance deductions, tax deductions and attachment deductions having been paid, no notice of attachment having been served for the liabilities covered, and no bankruptcy having been opened. See Skatteetaten's current conditions for a payment plan. These are the criteria for the ordinary arrangement – not a general right to defer payment.
What documentation does Skatteetaten need?
For a business that may mean the latest reconciled annual accounts, updated accounts and balance sheet, an overview of assets and liabilities, an overview of secured claims, a cash flow budget for the period of the plan, an overview of other debt, and information about any overdraft facility. The cash flow budget should show that the business can manage both the instalments under the plan and the new tax and duty liabilities falling due along the way. Four months' deferral helps little if the business builds up four months of new tax debt at the same time. If the business has unpaid advance deductions, see also Advance tax deductions not paid – what now?.
Applying does not stop collection
Simply sending an application for a payment plan does not stop collection. Late-payment interest can keep running while the application is considered, and the rate went up on 1 July 2026. So apply early if you can see the payment problem coming. If the company does not meet the standard criteria, that does not necessarily mean automatic refusal. The collection authority can in some cases consider a plan outside the criteria, including where it gives as good or better recovery than other collection measures. But the threshold rises.
When has a payment problem become insolvency?
An empty bank account on the due date does not automatically make a company insolvent. Under the Bankruptcy Act the main question is whether the business can pay its obligations as they fall due, and whether the inability to pay is merely temporary. If the company is NOK 200,000 short today but has a certain customer payment of NOK 500,000 arriving in a few days, the problem may be temporary. The situation is far more serious where month after month the company cannot meet tax due dates, pushes suppliers ahead of it, has no realistic customer payments coming, cannot obtain new financing, and builds up ever larger arrears.
What should the board do when the finances become unsound?
The Companies Act requires the company to have adequate equity and liquidity at all times, and the board has to keep itself informed about the company's financial position. When the finances become critical the board should ensure the accounts are up to date, produce a realistic cash flow forecast, deal with the situation at a board meeting, decide specific measures with dates, and keep reviewing whether continuing to trade is still sound. Where there is a risk of personal liability, it is important to separate the company's payment problems from the board's own conduct. See Directors' liability – when do you become personally liable?.
Does the board automatically have to file for bankruptcy?
Not simply because one tax or VAT bill cannot be paid. But where the company genuinely is insolvent, there is no realistic financing or creditor solution, and continuing to trade only builds up more debt, filing should be considered immediately. If a creditor has already taken the matter to the district court, see Served with a bankruptcy petition – what now?.
Are there alternatives to bankruptcy?
Yes. The business can try new equity, refinancing, selling assets, agreements with individual creditors, a collective voluntary arrangement with creditors, or formal debt negotiation under the rules in force at the time. The rules on restructuring have been changing during 2026. A specific case should therefore be assessed under the rules actually in force at the time of the assessment.
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This is general guidance, not advice on your specific case. Deadlines, rates and amounts change – always check the current rules, or get in touch with us.
More on payment problems, bankruptcy and personal liability
- Advance tax deductions not paid – what now?
- Served with a bankruptcy petition – what now?
- The enforcement officer has been in touch – what are attachment and wage deductions?
- Directors' liability – when do you become personally liable for the company's debts?
- Bankruptcy disqualification – what does it mean and how long does it last?
Is it urgent?
We can work out what actually has to be done, what documentation exists and how quickly it can be sorted. You can also reach us in the evenings and at weekends.
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