TKEG Expat™ (Test) Norway Corporate Tax Guide

The corporate income tax (CIT) rate in Norway is set at 22%, with an elevated rate of 25% for specific companies operating within the financial sector. CIT returns are due at the end of May following the financial year, except for companies under the petroleum tax regime, where they must file by the end of April. Any tax arrears must be paid within three weeks of the public tax assessment. Additionally, estimated tax payments are due on 15 February and 15 April in the year following the income year.

[b]Special Tax Regimes[/b]
[b]Petroleum: [/b]Income from upstream petroleum activity is subject to a marginal tax rate of 78% (22% CIT + 56% special tax).
[b]Hydropower: [/b]Income from hydropower production is subject to a marginal tax rate of 67% (22% CIT + 57.7% resource rent tax).
[b]Onshore Wind: [/b]Income from onshore wind power production is subject to an effective marginal tax rate of 47% (22% CIT + 25% resource rent tax), applicable from 1 January 2024.

Personal income tax (PIT) in Norway reaches a headline rate of 47.4%. Taxpayers must file their PIT returns by 30 April. If assessed taxes exceed the amounts withheld or paid as advance taxes, the difference is payable in two equal installments. The due dates depend on when the taxpayer receives their tax assessment, typically by 20 August and 24 September or three and eight weeks after the assessment notice. Advance tax is paid in four equal installments: 15 March, 15 May, 15 September, and 15 November.

In Norway, capital gains tax for corporate entities is imposed at a rate of 22%, while individuals face a higher rate of 37.84% on their capital gains. The taxation of capital gains follows the same basic principles as those for regular taxable income.

Norway applies a general VAT rate of 25% to most goods and services. However, reduced rates exist, including 15% for food and beverages (excluding alcohol, medication, and water from workwater), and 12% for domestic passenger transport and accommodation services, among others. There are exemptions, such as exports and goods/services for Norwegian offshore and non-resident ships. Additional exemptions apply to newspapers, used vehicles, and electric vehicles under specific conditions.

In Norway, municipalities can choose whether or not to impose property taxes, with rates varying between 0.1% and 0.7% of the property’s estimated market value. Some municipalities set lower rates, such as 0.4% for private residences and leisure properties. Hydropower producers are subject to property taxes on their facilities based on the capital interest rate of 4.5%, with calculation methods depending on their energy production capacity. Additionally, production equipment and installations are exempt for a seven-year transitional period.