Depreciation – which groups and rates apply?

A fixed asset has to be capitalised for tax where it is both durable – an expected useful life of at least three years – and substantial, meaning a cost of at least NOK 30,000. It is then depreciated on a declining balance by group: 30% for IT equipment, 24% for vans and lorries, 20% for cars, machinery and fixtures, 10% for fixed technical installations, 4% for buildings and 2% for commercial buildings.

When does an asset have to be capitalised?

A fixed asset normally has to be capitalised where it is both: durable – an expected useful life of at least three years and substantial – a cost of at least NOK 30,000 The cost includes VAT where the business has no right to deduct. A computer at NOK 15,000 can therefore often be expensed directly, while a machine at NOK 500,000 has to be spread over several years.

Under NOK 30,000

A qualifying asset under NOK 30,000 can normally be expensed directly. The same normally applies to assets with an expected useful life under three years. But the NOK 30,000 threshold does not mean every asset below it can be expensed. Among other things the asset has to lose value through wear or age – land and art do not. Several objects can in some cases form one functional unit and have to be assessed together. Twenty identical office chairs at NOK 8,000 are not necessarily twenty small purchases.

Accounting and tax depreciation are two different things

For accounting, fixed assets with a limited life have to be depreciated under a sensible plan. Straight-line depreciation is common but not mandatory. For tax, declining-balance depreciation with fixed maximum rates is used. The two normally give different values, and the difference is a temporary difference giving rise to deferred tax.

The groups and rates in 2026

a – office machines, IT equipment and similar: 30% b – acquired goodwill: 20% c – articulated lorries, lorries, buses, vans, taxis etc.: 24% d – passenger cars, machinery, fixtures, tools etc.: 20% e – ships, vessels and rigs: 14% f – aircraft and helicopters: 12% g – plant for transmitting and distributing electric power etc.: 5% h – buildings and plant, hotels etc.: 4% i – commercial buildings: 2% j – fixed technical installations in buildings: 10% The rates are maximums – you can depreciate less, but not more.

Group h has higher rates for some buildings

This is often overlooked. Within group h there are increased rates for buildings with a shorter life and for livestock buildings in agriculture, with rates up to 10 and 20% in addition to the increased rate of 6%. Where the business has a simple farm building, a warehouse or a livestock building, it can be worth considerably more than 4% a year. Check Skatteetaten's rate page for the specific building before the balance is set up.

A full year's rate even on a December purchase

A qualifying asset can normally get a full year's tax depreciation even where it was bought late in the year. That is a real planning opportunity at the year end – but only where the asset has actually been acquired and put into use, not merely ordered.

Technical installations or machinery?

Lifts, ventilation, heating, plumbing and electrical systems serving the building's general usability normally go in group j at 10%. Production machinery can instead belong in group d at 20%, even where it is fixed in place. The difference is double the rate, so the classification is worth getting right at the investment – not at a later audit.

Selling fixed assets

For the pooled groups a, c, d and j the business can choose to take all or part of the sale proceeds to income directly. The part not taken to income reduces the balance. That gives a real choice: where the company has a loss to use, taking it to income directly can be favourable.

Negative and small balances

A negative balance on a, c, d or j is taken to income at least at the same percentage as the maximum depreciation rate. Where a negative balance is under NOK 30,000, the whole remainder is taken to income. A small positive balance under NOK 30,000 can be deducted in whole or in part at the taxpayer's choice. That clears up residual amounts that would otherwise sit in the balance for years.

The gain and loss account

For assets outside the pooled groups, and in certain other cases, a gain or loss goes to the gain and loss account. Positive balance: at least 20% is taken to income each year. Negative balance: up to 20% is deducted each year. A gain is therefore spread over several years, while a loss can be taken at the same pace or more slowly.

Maintenance or improvement?

Maintenance normally restores the asset to its earlier relative standard and can often be expensed directly. Improvement means betterment, alteration or extension beyond the earlier standard, and normally has to be capitalised. The line is one of the most disputed in practice, particularly on building refurbishment. A bathroom brought up to today's standard is not automatically just maintenance. We can classify the assets, set the right group and handle the tax treatment on purchase and sale – see also The year-end close step by step

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.

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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