• Corporate Income Tax Rate: The standard rate is 22%
• Branch Tax Rate: Foreign branches operating in Norway are also taxed at 22%
• Capital Gains Tax Rate: Generally, capital gains are taxed at 22%, with a notable exception for gains from the sale of shares in certain conditions.

• Resident Companies: Companies incorporated in Norway or effectively managed from Norway are treated as residents and taxed on their worldwide income.
• Non-Residents: These entities are only taxed on income sourced within Norway.

Corporate income tax applies to a company’s profits, which include:

• Business and trading income
• Passive income (e.g., dividends, interest)
• Capital gains (with broad exemptions for capital gains on shares)

In 2024, Norway has aligned its corporate tax regulations with the OECD’s Pillar Two initiative, which seeks to establish a global minimum corporate tax rate. This means that multinational groups with revenues exceeding EUR 750 million will be subject to a minimum effective tax rate of 15%. The implementation of the Income Inclusion Rule (IIR) and the Qualified Domestic Minimum Top-up Tax (QDMTT) will affect accounting periods starting after December 31, 2023.

• Dividends: A significant aspect of Norwegian tax law is the participation exemption, which allows for a 97% exemption on dividends received from other resident companies or companies based in the European Economic Area (EEA), provided certain conditions are met (e.g., real business activities).
• Capital Gains: Generally, capital gains on the sale of shares are exempt from taxation, especially if the shareholder has held a significant interest (at least 10%) for two years. However, there are specific rules for companies based in low-tax jurisdictions.

Companies in Norway can carry forward losses indefinitely, which can be beneficial for tax planning. Liquidation losses can be carried back for two years, offering further flexibility in managing taxable income

• Filing:Companies are required to file electronic tax returns by May 31 of the year following the tax year.
• Advance Payments:Corporations must make advance tax payments twice a year, usually in February and April.

• Personal Income Tax Rates
  • Up to NOK 208,049: 0%
  • NOK 208,050 – 292,849: 1.7%
  • NOK 292,850 – 669,999: 4%
  • NOK 670,000 – 937,899: 13.6%
  • NOK 937,900 – 1,349,999: 16.6%
  • Over NOK 1,349,999: 17.6%
• Capital Gains Tax Rate: The general capital gains tax rate is 22%, but gains on securities can result in an effective rate of 37.84% due to a multiplier effect.

An individual is considered a permanent resident of Norway if they stay in the country for more than 183 days within a 12-month period or 270 days over a 36-month period. It’s important to note that non-residents are taxed only on their Norwegian-source income.

Taxable income encompasses a wide range of sources, including:

• Salaries and wages
• Dividends and interest
• Income from real property
• Partnership income

The combined municipal and national tax rate is 22% on net income, supplemented by progressive rates on personal income.

Norwegian tax law provides several deductions to minimize taxable income, including:

• A standard deduction for incidental personal expenses of up to 46% of salary, capped at NOK 104,450
• A personal allowance of NOK 88,250
• Unlimited deductions for interest paid on debt

Filing Deadline: Tax returns must be filed by April 30 of the year following the tax year for individuals who do not operate a personal business.

• Dividends: Generally subject to a 25% withholding tax, but this may be reduced under applicable tax treaties.
• Interest: A withholding tax of 15% applies to certain payments made to related companies in low-tax jurisdictions.
• Royalties: Similar treatment as interest, with potential for a 15% withholding tax.

• Standard Rate: 25%
• Reduced Rates: 15% for food and drinks, 12% for transport and accommodation services.

Businesses exceeding an annual turnover of NOK 50,000 must register for VAT. There are six filing periods per year (every two months), ensuring regular compliance

Employees contribute 7.8% of gross income, while employers’ contributions vary by region, typically ranging from 0% to 14.1%

Individuals face a 1% wealth tax on capital exceeding NOK 1.7 million and 1.1% on wealth over NOK 20 million.

• Stamp Duty: A 2.5% stamp duty on property transfers.
• No Inheritance or Estate Tax: Norway does not impose these taxes, which can be attractive for estate planning.