Norway

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

The rate is 28% (municipal tax of 6,75% and national tax 21,25%).

   
Tax rate on long-term capital gains In Norway, capital gains are taxed at the rate of 28%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies The Norwegian residents pay the tax on dividends which is included in the corporate tax. The non-residents pay a tax of 25%.
   
Tax rate on branches Branches are taxed on profits made in Norway at the rate of 28%.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate The tax on individuals is divided into three branches: the non-residents class 0), single person (class 1) and one or more dependant (class 2).
All individuals (residents and non residents) must pay a municipal tax of 28% on their annual net income which is superior to 28,800 NOK (class 1) or 57,600 NOK (class 2).
Tax schedule 2001:
From 0 to 289,000 NOK0%
From 289,000 to 793,200 NOK13,5%
Beyond 793,200 NOK19,5%

Class 2
From 0 to 342,200 NOK0%
From 342,200 to 793,200 NOK13,5%
Beyond 793,200 NOK19,5%

All income from capital are taxable with 28% except dividends taxable with 11%.
   
Tax deductions or other allowances In Norway, several deductions and dejections can reduce the amount of taxes and apply also to non-residents.
Travelling costs from the place of residence until the work place up to 6 000 NOK.
Insurance allowances are deductible at a level of 10% of the amount of the premium (30 000 NOK maximum).
The loans interests paid for the purchase of a property good.
Living allowances.
Deductions for dependent children:
1820 NOK for every dependent child (up to 15 years-old included).
2540 NOK for children from 16 to 18 years-old.
Valid fixed deduction for all categories of incomes: 20% of the annual gross income (3 700 NOK minimum / 32 600 NOK maximum).
Deduction of 25 000 for single people and 50 000 for married couples.
There are many other deductions concerning individuals who participate in the capital increase of a company or any other investment.



VAT rates

Standard rates 25%
   
Reduced rates 14% and 8%
Rate of 0% applied on some products and services (produced intended to export, some goods transportation, newspapers, electric energy in some regions of Norway etc.).



Other important taxes


Name of tax
Rate
Stamp duties  
2,50%  
Land taxes  
0,2% to 0,7%  
Tax of investment  
7%  
Successions and donations  
Progressive rate (maximum 30%)  
Wealth taxes  
0% to 1,1%  


 

Accounting


General accounting principles
The Norwegian accounting is governed by the Accounting Act of 1998 which fixes the current accounting rules from January 1-st, 1999. The Norwegian accounting is conformed to the directives of the European Union and respect the standards for most of the time.

Obligations and publications
The financial statements have to give a sincere and faithful image of the situation of the company.
All companies of capital have to send a copy of their annual report to the legal authorities of the country. This annual report has to contain a profit and loss account, a balance sheet and an annual report.

Certification and auditing
The audit is compulsory. The auditors are represented by two recognized professional organisations: the Norges Statsautoriserte Revisorers forewing (NSRF) which represents the authorized auditors and the Norges Registrete Revisorers Forening (NRRF) who are the approved auditors.

Professionals and representative organizations
The "Den norske Revisorforening" is the Norwegian Chartered accountants Board (DnR).



Useful links
For further information, please contact the Ministry of Finance of Norway.

Last modified in 2006 - ongoing update
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