Norway has adopted a dual income tax system
, which taxes at progressive rates the labor and pension's income but which applies a flat rate for capital income. For the companies which function in Norway the main taxes
which apply are the VAT and the corporate income tax. Our lawyers in Norway
can help you become familiarized with the Norwegian taxation system
Tax liability in Norway
According to the Norwegian tax regulations
the responsible authority for the charge and collection of tax is the Tax Administration (Skatteetaten), which is a governmental agency. The foreign investors in Norway
are accorded limited tax liability which means that they are taxed only for the income obtained through business activity carried out inside the borders of this country.
The corporate income tax
is levied at the flat rate of 25% for all companies functioning in Norway, for the income obtained in this country. Tax law
does not define residence in a restrictive manner, therefore incorporated companies
as well as foreign companies which have their management in this country are considered by the authorities as residents in Norway.
Other provisions of the Norwegian tax regulations
In Norway, VAT
is charged at a standard rate of 25%, but some reduced rates of 15%, 10% and 0% function as well for several type of products and commercial activities. The capital gains are also taxed
at the rate of 25%, and the real estate tax
varies between 0.2 and 0.7%.
In Norway the calculation of the taxable income
allows for the deduction of certain expenses. As such social security costs, expenditure for research, losses, depreciation and interest and royalties payments do not affect the calculation of the revenues for a Norwegian company.
The petroleum industry in Norway is following a special taxation regime. For those companies operating in this domain our lawyers in Norway can provide more specific information.
Our law firm in Norway
can guide you through the taxation regulations
and help you understand the tax system in this country
. Don’t hesitate to contact
us for any issues regarding taxation in Norway