Tax Guide
Financial Year – 2020
Currency – Norwegian Krone (NOK)
Corporate Tax Summary
Residence – A company is resident in Norway if it is incorporated in Norway or exercises central management and board member decisions from Norway.
Basis of Taxation – Resident companies are taxed on global income. A foreign branch with permanent establishment in Norway generally pays taxes from the income derived from Norway.
| Reference | ||
| Corporate Income Tax Rate (%) | 22% | |
| Branch Tax Rate (%) | 22% | |
| Withholding Tax Rate: | ||
| Dividends – Franked | 3% | Dividends paid by Norwegian resident companies to company shareholders based in Norway is not taxed. Private shareholders on the other hand are subject to a dividend tax which described below. |
| Dividends – Unfranked | 31.68% | Private shareholders are subject to a 22% tax on dividends calculated with an adjustment factor of 1.44, which makes the effective tax rate on dividends 31.68%. |
| Dividends – Conduit Foreign Income | – | |
| Interest | 22% | |
| Royalties from Intellectual Property | 22% | |
| Fund Payments from Managed Investment Trusts | – | |
| Branch Remittance Tax | – | |
| Net Operating Losses (Years) | ||
| Carry Back | 2 years | |
| Carry Forward | Indefinitely |
Individual Tax Summary
Residence – For tax purposes, an individual is a resident if he/she ordinarily resides in Norway or satisfies one of the following conditions:
- Is domiciled in Norway (and does not have a permanent home elsewhere)
- Has spent more than half the year in Norway, or more than 272 days of the last 3 years in Norway.
A temporary resident for tax purposes is an individual who works for a permanent establishment in Norway, or is on a temporary contract as hired labour.
Basis of Taxation – Resident taxpayers are generally taxed on worldwide income, with a tax offset for foreign tax paid on foreign income, up to the amount of Norwegian tax payable on that income. Foreign residents are taxable only on Norwegian-source income.
Filing Status –Each taxpayer must file a separate return for each financial year. Joint returns are not permitted.
Personal Income Tax Rates
| Taxable Income | Tax Payable – Residents | Tax Payable – Non Residents |
| Up to NOK 180,000 | 22%* + social security (8.2%) | Same if they are taxable in Norway. Foreign residents may apply for a fixed tax rate of 25% for salaries under NOK 639,750. Non-residents with membership in foreign national insurance schemes do not pay social security in Norway. |
| NOK 180,000 – NOK 254,500 | 22% + 1.9% of bracket value + social security (8.2%) | Same if they are taxable in Norway. Foreign residents may apply for a fixed tax rate of 25% for salaries under NOK 639,750. Non-residents with membership in foreign national insurance schemes do not pay social security in Norway. |
| NOK 254,500 – NOK 639,750 | NOK 1,400.30 + 22% + 4.2% of bracket value + social security (8.2%) | Same if they are taxable in Norway. Foreign residents may apply for a fixed tax rate of 25% for salaries under NOK 639,750. Non-residents with membership in foreign national insurance schemes do not pay social security in Norway. |
| NOK 639,750 – NOK 999,550 | NOK 16,180.50 + 22% + 13.2% of bracket value + social security (8.2%) | Same if they are taxable in Norway. Non-residents with membership in foreign national insurance schemes do not pay social security in Norway. |
| Over 999,550 | NOK 65,074.40 + 22% + 16.2% of bracket value + social sec (8.2%) | Same if they are taxable in Norway. Non-residents with membership in foreign national insurance schemes do not pay social security in Norway. |
*The taxes are calculated from the gross salary minus a deduction amount of maximum NOK 104,450. Thus, if a salary is NOK 999,950, the taxes are calculated from NOK 895,500. Social security and bracket tax are calculated from the gross salary without deductions.
Goods and Services Tax (GST)
| Rate | 12% – 25% |
| Taxable Transactions | VAT is a transaction based, value added tax on the inputs and outputs of an organisation’s business activities. VAT is charged at each step in the supply chain, with VAT- registered entities including GST in the price of ‚taxable‘ goods and services that they supply. Generally, entities that are registered for VAT purposes can claim a credit for the VAT paid on their inputs acquired for use in their enterprise. However, in certain circumstances this is limited to the extent that they are making ‚taxable supplies‘. The general VAT rate is 25%, with exemptions for food (15%) and personal transport/cinema/hotels (12%). |
| Registration | An entity doing business must register for VAT if its annual turnover is at or above the registration turnover threshold. The current threshold is NOK 140,000 per year for not-for-profit entities and NOK 50,000 per year for all other entities. |
| Filing and Payment | Each VAT registered entity has an obligation to file a VAT report and pay the VAT on a bimonthly basis. Some smaller entities may apply for annual reporting. |
Other Taxes Payable
| Tax | Reference |
| Payroll Tax | Payroll tax is levied on employers by the states and territories, with the amount based on salaries, wages and benefits paid to employees. The normal rate is 14.1% with smaller rates for regions in remote locations. |
| Payroll Tax | The states and territories impose stamp duty at rates of up to 2.5% on the transfer of real property. |
| Land Tax | Land tax is levied by municipalities on entities owning property within their borders. Depending on the jurisdiction, rates of up to 0.7% apply. |
Last updated: 09.06.2020
