Norway Tax Laws and Regulations
Norway Tax Laws
Dealing with tax, payroll, and employment regulations for your staff from overseas is always a tricky process and poses complications that demand expert guidance. Norway is no exception, particularly with its complex dual system for individuals’ taxation.
With over 20 years’ experience in the front rank of international payroll providers, Bradford Jacobs ensures our clients comply with every level of tax and employment law across the globe. Our ‘knowledge’ is vital for foreign companies expanding into Norway.
By using our PEO service, we will take care of the complicated legwork so that you can focus on your business goals. Bradford Jacobs’ dedicated specialists remove the burdens of worrying about these complications while you focus on building your business in a new territory.
Overview of Taxes in Norway
Taxable income in NOK, Euros (€) and US Dollars (US$)
| Tax Type | Percentages |
|---|---|
| General Income Tax | |
| Flat rate of | 22.0% |
| Personal Income Tax (Bracket Tax) | |
| NOK 184,800 (€17,980, US$20,270) to NOK 260,100 (€25,318, US$28,530) | 1.7% |
| Three other bands with a top rate of | |
| Over NOK 1,021,550 (€99,459, US$112,106) | 16.2% |
| Social Insurance Taxes | |
| Employers’ typical contribution (reduced in low population areas) | 14.1% |
| Employees | 8.2% |
| Self-employed | 11.4% |
| Corporate Income Tax (CIT) | |
| Resident companies taxed on profits | 22.0% |
| Some financial companies | 25.0% |
| Withholding Tax (WHT) | |
| Dividends | 25.0% |
| Royalties and lease payments for shipping | 22.0% |
| Indirect Taxes | |
| Value Added Tax top rate on goods and services | 25.0% |
| Food and beverages and some other categories | 15.0% |
| Transport and domestic ferry services, leisure and culture activities | 12.0% |
| Capital Gains Tax (CGT) | |
| Residents’ investments and capital gains are taxed as general income | 22.0% |
Norway Individual Tax – Single, Married
Individuals become tax residents by living in Norway for more than 183 days in a 12-month period or for 270 days over three years and pay tax on their worldwide income. Non-residents are liable for taxes on certain categories of income earned in Norway and since 2019 have been able to opt for a Pay-As-You-Go (PAYE) system. Norway has a dual tax system for individuals with a flat rate of 22% applying to ‘general income’ and four rates from 1.7% to 16.2% applying to ‘personal income’. The tax year runs from January 1 until December 31.
Taxable income in NOK, Euros (€) and US Dollars (US$)
| Tax Type | Percentages |
|---|---|
| General Income Tax | |
| Flat rate of | 22.0% |
| Personal Income Tax | |
| Up to NOK 184,800 (€17,980, US$20,270) | 0% |
| NOK 184,800 to NOK 260,100 (€25,318, US$28,530) | 1.7% |
| NOK 260,100 to NOK 651,250 (€25,471, US$28,707) | 4.0% |
| NOK 651,250 to NOK 1,021,550 (€99,459, US$112,106) | 13.2% |
| Over NOK 1,021,550 | 16.2% |
| Employee Social Insurance Taxes | |
| Employees | 8.2% |
| Self-employed | 11.4% |