A Guide on Dividends in Norway

A Guide on Dividends in Norway

Updated on Thursday 21st September 2017

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Dividends are parts of a company's revenues which are distributed to shareholders, proportionally with the investment that each shareholder has made in the business. The income from the dividends are taxed under the withholding tax, at a rate of 25%. According to the rules adopted in 2017, the withholding taxes for dividends can be amended after the distribution of the dividends, so within three months, the shareholder can apply for a refund, whether he/she is entitled to it.
One of our attorneys in Norway can help you register and submit an initial capital in a Norwegian company and explain how you can benefit from the latest provisions concerning the taxation of dividends in this country. 

Key aspects concerning dividends in Norway

According to the Company Code in Norway, any foreign investor who has shares in a Norwegian corporation will be entitled to receive revenue as dividends at the end of the fiscal year. Residents of Norway who invested as well in foreign states need to fill a specific form RF-1059 in which to specify their tax returns.
If you invest in the Norwegian market by purchasing shares in a local company, the profits from your dividends is going to be taxed by the central government through withholding taxes. If you are a foreign shareholder, but you also run an enterprise in Norway or in the EEA, then you qualify for the TEM (the Norwegian tax exemption model). The TEM exempt from the payment of the withholding tax the corporate investors who are resident in the EEA.
Our law firm in Norway can provide you more information on the taxation scheme which applies in your case in order to make the most out of your investment in the Norwegian corporations.

Main grounds for refund of withholding taxes for dividends in Norway

There are several situations in which a shareholder who has been taxed for dividends received in Norway can apply for a refund. The following list contains the most frequent such situations:
Tax treaties – whether Norway has signed a tax treaty with the country in which the investor is a resident tax payer, than the receiver of the dividends can apply for a correction of the withholding taxes. The new rate for the shareholder will be of 15% instead of the general rate of 25%.
EEA resident – according to the Norwegian Tax Act, residents of the EEA who own a business either in their home country or in Norway are entitled to exemptions from the withholding taxes for dividends.
Non-personal dividends recipients - this rule applies to investment funds, co-operative societies or state-owned companies who qualify for withholding tax exemptions from the Norwegian government.
Don’t hesitate to contact our Norwegian lawyers in order to be updated on the latest provisions concerning the dividends and their taxation in Norway.