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Norway

Taxes

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.

Country details

Norway
NOK
Oslo
Europe
Norwegian, Norwegian (Bokmål), Norwegian (Nynorsk), se, Finnish
5,009,150

Tax treaties

Country Type Date Signed
Brunei Darussalam TIEA 2012-06-27
Tanzania DTC  1976-04-28
Iceland DTC  1989-12-07
Malawi DTC  2009-08-12
Bosnia and Herzegovina DTC  1983-09-01
Finland TIEA 1989-12-07
Georgia DTC  2011-11-10
Bangladesh DTC  2004-09-15
Canada DTC  2002-07-12
Italy DTC  1985-06-17
Barbados DTC  1990-11-15
Costa Rica TIEA 2011-06-29
France DTC  1980-12-19
Venezuela DTC  1997-10-29
South Africa DTC  1996-12-02
New Zealand DTC  1982-04-20
Qatar DTC  2009-06-29
Monaco TIEA 2010-06-23
Ukraine DTC  1996-03-07
Australia DTC  2006-08-08
Anguilla TIEA 2009-12-14
Saint Vincent and the Grenadines TIEA 2010-03-24
Botswana TIEA 2013-02-20
Guernsey TIEA 2008-10-28
Portugal DTC  2011-03-10
Grenada TIEA 2010-05-19
Andorra TIEA 2010-02-24
Trinidad and Tobago DTC  1969-10-29
Malta DTC  2012-03-30
Zambia DTC  1971-07-14
Vanuatu TIEA 2010-10-13
Ireland DTC  2000-11-22
San Marino TIEA 2010-01-12
Antigua and Barbuda TIEA 2010-05-19
Bahamas, The TIEA 2010-03-10
Gibraltar TIEA 2009-12-16
Cook Islands TIEA 2009-12-16
Albania DTC  1998-10-14
China DTC  1986-02-25
Hong Kong, China TIEA 2014-08-22
Isle of Man TIEA 2007-10-30
Zimbabwe DTC  1999-03-09
Cyprus DTC  1951-05-02
Aruba TIEA 2009-09-10
Senegal DTC  1994-04-07
Former Yugoslav Republic of Macedonia DTC  2011-04-19
Chile DTC  2001-10-26
Seychelles TIEA 2011-03-30
Samoa TIEA 2009-12-16
Marshall Islands TIEA 2010-09-28
Korea, Republic of DTC  1982-10-05
Sint Maarten DTC  1989-11-13
Malaysia DTC  1970-12-23
Mexico DTC  1995-03-23
Azerbaijan DTC  1996-04-24
Greece DTC  1988-04-27
Saint Kitts and Nevis TIEA 2010-03-24
Estonia DTC  1993-05-14
Egypt DTC  1964-10-20
Latvia DTC  1993-07-19
Viet nam DTC  1995-06-01
Panama TIEA 2012-11-12
Nepal DTC  1996-05-13
Montserrat TIEA 2010-11-22
United Kingdom DTC  2013-03-14
Uganda DTC  1999-09-07
Benin DTC  1979-05-29
Netherlands DTC  1990-01-12
Bermuda TIEA 2009-04-16
Guatemala TIEA 2012-05-15
Lithuania DTC  1993-04-27
Sri Lanka DTC  1986-12-04
Indonesia DTC  1988-07-19
Turkey DTC  2010-01-15
Turks and Caicos Islands TIEA 2009-12-16
Russian Federation DTC  1996-03-26
Kazakhstan DTC  2001-04-03
Slovenia DTC  2008-02-18
Côte d'Ivoire DTC  1978-02-15
Cayman Islands TIEA 2009-04-01
Jersey TIEA 2008-10-28
Uruguay TIEA 2011-12-14
Serbia DTC  1983-01-10
Croatia DTC  1983-01-10
Poland DTC  2009-09-09
Liberia TIEA 2010-11-10
Singapore DTC  1997-12-19
Greenland TIEA 1989-12-07
Macao, China TIEA 2011-04-29
Niue TIEA 2013-10-16
Switzerland DTC  1987-09-07
Sierra Leone DTC  1951-02-05
Morocco DTC  1972-05-05
Curaçao DTC  1989-11-13
Mauritius TIEA 2011-12-01
Sweden TIEA 1989-12-07
Israel DTC  1966-11-02
Germany DTC  1991-10-04
Romania DTC  1980-11-14
United States DTC  1971-12-03
India DTC  2011-02-02
Dominica TIEA 2010-05-19
Gambia, The DTC  1994-04-27
Denmark TIEA 1989-12-07
Brazil DTC  1980-08-21
Belize TIEA 2010-09-15
Tunisia DTC  1978-05-31
Jamaica DTC  1991-09-30
Bahrain TIEA 2011-10-14
Spain DTC  1999-10-06
Belgium DTC  1988-04-14
Liechtenstein TIEA 2010-12-17
Czech Republic DTC  2004-10-19
Luxembourg DTC  1983-05-06
Thailand DTC  2003-07-30
Slovakia DTC  1979-06-27
Japan DTC  1992-03-04
Bulgaria DTC  1988-03-01
Austria DTC  1995-11-28
Argentina DTC  1997-10-08
Faroe Islands TIEA 1989-12-07
Kenya DTC  1972-12-13
Hungary DTC  1980-10-21
Philippines DTC  1987-07-09
Pakistan DTC  1986-10-07
Saint Lucia TIEA 2010-05-19

Tax treaties Map

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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