Corporate Tax in Norway

Corporate Tax in Norway

Updated on Monday 20th February 2023

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A big factor in opening a business in Norway is the rate of its corporate income tax. Corporate tax in Norway are imposed differently for those companies that are residents of the country and those foreign companies that are do business in or are handled from Norway, as well as the kind of business conducted. For resident companies, they are taxed for income from all sources within and outside Norway while foreign companies are only taxed for income from within the country. The latest rate, which is the lowest rate it has imposed in recent years, is 25 percent for Corporate Income Tax. The 25 percent is taken from the net income of the company from conducting its business throughout the year. Let our law firm in Norway guide you through understanding the corporate tax in Norway.

Corporate Tax Rate In Norway

The main tax that companies must pay in national corporate income tax in Norway. The rate is 25 percent for both resident companies and the branches of foreign companies established in the country. For companies engaged in the exploration and exploitation of petroleum, a flat rate of 53 percent is imposed. This tax is exclusively imposed on the income derived from such activity. If the company derives income from other sources, the regular rate of 25 percent is imposed. For shipping companies, they are exempted from the regular rate but they are charged a little amount for tonnage for each ship owned. Our lawyers in Norway can help you determine what corporate tax rate applies to your company.

Computation of corporate tax in Norway

The corporate tax rate in Norway is imposed on the net taxable income. This is arrived at by computing the total income of the company minus the allowable deductions. Income includes income from the ordinary course of business, royalties, interests, capital gains, and income from foreign currency. For deductions, it includes ordinary business expenses, social security payments, depreciation, royalty payments, losses, research expenses, and interest payments. To help you come up with your taxable income, our attorneys in Norway can assist you.

Payment of Corporate Taxes in Norway

The imposition of corporate taxes in Norway is based on the income received for the tax year, which is similar to that of a calendar year. Taxes are paid in advance twice a year, based on the previous year’s taxable income. A tax return is filed on March 31, which is the last payment. Only resident companies are allowed to file electronically. Foreign corporations have to file a hard copy for their tax returns but they are granted tax credits if they are able to file and pay on time.

You need not worry about how to be informed about the corporate Tax in Norway. If you have further questions, just get in touch with our law firm in Norway

It is crucial to bear in mind that in order to legally live and work in Norway, you must apply for the proper visa. Norway, unlike the majority of European nations, does not take part in the EU Blue Card program. So, if you want to secure a Norwegian residence permit, you can rely on our local law firm for support.