Taxation in Norway

Taxation in Norway

Updated on Monday 09th January 2023

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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.
Our attorneys in Norway can give you more information regarding the taxation policies and the rates which apply to your business in Norway, according to the double taxation treaties signed between Norway and your country of residence. We can also offer immigration support. The family visa is one of the easiest routes to get residency in Norway. You can receive this permit after residing in Norway continuously for 3 years. After that, a 2-year residence card renewal will let you to continue living and working there indefinitely. You are welcome to contact our immigration law office in Norway for advice on coming here via family reunification.

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.