Country Trading Profiles Norway - Taxes

Tax Rates

Nature of the tax: Value added tax is called MVA (Merverdiavgift or meirverdiavgift, informally moms).
Tax rate: 25%
Reduced tax rate: There is a 15% tax rate for food and 8% rate for passenger transport, hotel accommodation and cinema tickets.
Other consumption taxes: Taxes for alcohol, tobacco, cars and other vehicles, oil products, electric power, waste, dangerous chemicals, chocolate, sugar products, non-alcoholic beaverages, beaverage packaging and food production.

National corporate income tax	28%
Corporate income tax on income derived from the extraction and processing of petroleum resources and pipeline transport for companies operating in the Norwegian continental shelf.	Additional flat rate of 50 %

Tax rate for foreign companies: Resident companies are taxed on their worldwide income (unless income is extempt under an applicable tax treaty). Nonresidents are taxed on Norwegian-source income.
Capital gains taxation: Flat rate of 28%. Right to deduction for losses. Capital gains on shares and dividens recieved by companies are often exempt from tax.
Main allowable deductions and tax credit: Ordinary business expenses are generally deductible: research expenditure, depreciation, social security payments, losses, interest payments, royalty payments, but no entertainment expenditures. For additional information, consult the Deloitte Tax Guide.
Other corporate taxes: Excise taxes, 2,5% stamp duty on deeds of conveyance, property tax (0,2% - 0,7%), environmental taxes.

General combined rate (municipal and national) on net income.	28%
A lower rate applies for the counties of Finnmark and Nord-Troms.	24.5%
An additional national income tax is payable on "gross personal income".	Progressive rate from 0% to 12%
From NOK 0 to 441,000	0%
From NOK 441,001 to 716,600	9%
Above NOK 716,600	12%

Allowable deductions and tax credit: All expenses incurred for the purpose of earning or securing income are deductible. Taxpayer can also claim deductions for interest paid on debt, supporting children younger than age 12 and pension plan premiums. Married taxpayers can file jointly.
Special expatriate tax regime: Expatriate personnel temporarily assigned to Norway are entitled to some deduction on gross income in addition to the standard deductions. This rule is applicable for the first four years of stay.

Countries with whom a double taxation treaty have been signed: See the list of Tax conventions signed between Norway and other states.
Withholding taxes: Dividends: 0% (25% for non-residents of the European Economic Area - EEA), Interest: 0%, Royalties: 0%
Bilateral agreement

Tax year: The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting standards: The Norwegian accounting conforms to the directives of the European Union and respects the standards for most of the time. The Norwegian Generally Accepted Accounting Principles (GAAP) consists out of the International Financial Reporting Standards (IFRS). Most of the time, the audit is compulsory.
Accounting regulation bodies: The Norwegian Institute of Public Accountants
The Financial Supervisory Authority of Norway
Ministry of Finance of Norway
Accounting reports: Financial statements, cash flow statement and additional information.
Publication requirements: According to the Accounting Act, all limited liability companies have the duty to submit their annual accounts within one month after being adopted by the annual general meeting. To be published, the annual report must be deposited in the Register of Company Accounts.
Professional accountancy bodies: The Norwegian Institute of Public Accountants
The Institute of Internal Auditors Norway
Certification and auditing: Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact The Financial Supervisory Authority of Norway.
Accounting news: Accountingweb.com