Verified Facts
The tax rates in Norway range from 22% to 47.2% for personal income tax, with a corporate tax rate of 23% and a standard VAT rate of 25%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Norway has a territorial tax system, meaning that individuals and businesses are taxed on their income earned within the country, as well as on their worldwide income if they are considered tax residents. The residency rules for tax purposes in Norway are based on the individual's physical presence in the country, with a minimum of 183 days in a calendar year or 270 days over a 36-month period. Individuals who meet these requirements are considered tax residents and are subject to taxation on their worldwide income.
The Norwegian tax system is designed to be progressive, with higher income earners paying a higher tax rate. The tax authorities in Norway, known as the Tax Administration, are responsible for collecting taxes and providing information to taxpayers. The Tax Administration also offers a range of services, including online filing and payment options, to make it easier for individuals and businesses to comply with their tax obligations.
Personal Income Tax
| Income Bracket (NOK) | Tax Rate |
|---|---|
| 0 - 190,350 | 22% |
| 190,351 - 267,900 | 24% |
| 267,901 - 345,400 | 31% |
| 345,401 - 473,800 | 36% |
| 473,801 and above | 47.2% |
| Individuals in Norway are entitled to various deductions and allowances, including a standard deduction, deductions for mortgage interest, and allowances for dependents. The tax filing deadline in Norway is typically May 31st of each year, and individuals can file their tax returns online or by mail. Taxpayers are also required to report their income from all sources, including employment, self-employment, and investments. |
Corporate & Business Tax
- The corporate tax rate in Norway is 23%, which applies to all businesses, including limited companies, partnerships, and sole proprietorships.
- Small businesses in Norway may be eligible for incentives, such as reduced tax rates or tax credits, to encourage entrepreneurship and job creation.
- Norway has several free zones, including the Oslo Airport Free Zone and the Ålesund Free Zone, which offer tax exemptions and other benefits to businesses that operate within these zones.
- Businesses in Norway are required to register with the Tax Administration and obtain a tax identification number before commencing operations.
- Companies in Norway are also required to file an annual tax return, which must include financial statements, tax calculations, and other supporting documentation.
VAT / Sales Tax
- The standard VAT rate in Norway is 25%, which applies to most goods and services, including food, clothing, and electronics.
- A reduced VAT rate of 15% applies to certain goods and services, such as food, transportation, and hotel accommodations.
- Some goods and services, such as financial services and healthcare, are exempt from VAT in Norway.
- Norway has a tourist refund scheme, which allows foreign visitors to claim a refund of VAT paid on certain purchases, such as clothing and souvenirs.
For Expats & Foreign Workers
- Tax residency rules in Norway are based on the individual's physical presence in the country, with a minimum of 183 days in a calendar year or 270 days over a 36-month period.
- Norway has a network of double taxation treaties with over 80 countries, which helps to prevent double taxation and fiscal evasion.
- Expats and foreign workers in Norway may be required to register with the Tax Administration and obtain a tax identification number.
- Social security contributions are mandatory for all employees in Norway, including expats and foreign workers.
- Expats and foreign workers may be eligible for tax credits or deductions for certain expenses, such as housing and transportation costs.
- Remittance rules in Norway require individuals to report their worldwide income, including income earned abroad, and to pay tax on that income in Norway.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is subject to taxation in Norway, with a tax rate of 22% or inclusion in income tax.
- Cryptocurrency is considered an asset in Norway, and gains from the sale of cryptocurrency are subject to taxation as capital gains.
- Dividend income from Norwegian companies is subject to a withholding tax of 25%, which can be reduced or eliminated under certain double taxation treaties.
- Tax losses from investments, including cryptocurrency, can be carried forward to offset future gains, subject to certain limitations and restrictions.