If you want to do business in Norway, this article will educate you on the tax laws for a LLC, which is the most common legal entity in Norway.
Norway taxes corporate income on a worldwide basis. The prevailing approximate tax rate for offshore income, from our research, and this is not personal tax advice, is 24%. The corporate income tax standard rate in Norway is 24%. This ranks Norway as 98th when compared to corporate tax rate worldwide. Petroleum and Hydropower activites are subject to an additional tax of 54% and 34.3% respectively.
The value added tax (VAT) rate is 25.00%, which ranks Norway as 171th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 14.10% to the equivalent of a social security fund and an employee will contribute 8.20%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 15hours. Contributing to this is the number of yearly labor tax payments, which is 1 in NO.
Thin cap rules are in play. Thin capitalisation refers to any type of requirements on companies' debt-to-asset ratios.
Dividends received from a Norwegian or EEA/EU resident company may be 97% tax exempted. If dividends are received by a non-EEA company, 97% exemption may apply if resident company holds at least 10% of the shares for at least two years. Dividends from low-tax jurisdictions may be 97% exempted, if it is proved that are conducted real business activities. Intragroup Norwegian/EEE companies dividends may be fully exempted, provided that the company holds more than 90% of shares. Dividends which are not exempted are included in corporate income tax base. A dividend is distributions of a company's earnings, decided by the board, to a class of its shareholders. Dividends can be one of the following shares of stock, cash payments, or other property.
Capital Gains from the disposal of shares from a Norwegian/EEA/EU company may be tax exempt. Gains received from a non-EEA/EU company may be tax exempt, provided that parent company holds at least 10% of the shares for at least two years. The exemption may apply to gains from subsidiaries of low-tax jurisdictions, provided that are conducted real business activities. Rest of capital gains are included in income tax base. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.
The dividends withholding tax rate is 25%. This should be interpreted usually that the taxman expects relevant legal entities to automatically withhold 25% on dividends paid to non-residents, unless rate is reduced under a tax treaty. Dividends paid to EEA/EU residents companies may be exempt from withholding tax, provided that the shareholder conducts real business activities. Interests and royalties are not subject to withholding tax.
There is a tax on net wealth in Norway. There are no known inheritance and transfer taxes. There are real property taxes. We are aware of commonly used credits for innovation spend that include breaks on taxation in Norway.
The above is not tax or legal advice for your company's facts and circumstances. Incorporations.io can refer you to an accountant in Norway who will advise you. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.
It takes approximately 24 hours to file and prepare documents for a Norway Civil law (Scandinavian).
The corporate tax is approximately 24% which is 98 in the world.
Owners of a company in Norway are allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.
The vat rate in Norway is 25% which ranks 171 in the world.
Thin capitalization rules are in effect. A company is thinly capitalised when there is a greater proportion of debt than equity. The minimum capitalization for a Norway Civil law (Scandinavian) is 30,000.
A corporate director is not permitted, meaning this country is not a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Norway, The Brønnøysund Register Centre. Shareholders are disclosed in the The Brønnøysund Register Centre.
Typically companies take 7-8 days to setup and there are 2 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Norway is a good option and have given it a score of 74 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Norway. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Norway, which is required by law.
We can help you with your incorporations needs for an initial payment of just $1000.
Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.
Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.
Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.
Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.
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