Norway’s tax system blends simplicity and structure, with a 22% corporate income tax and a progressive personal income tax reaching up to 39.6%. Wealth tax is applied at rates of 1% to 1.10%, while gift and inheritance taxes are absent. As a member of the European Economic Area (EEA), Norway aligns its tax framework with international standards, featuring strong anti-avoidance measures, Controlled Foreign Corporation (CFC) rules, and an extensive network of Double Tax Treaties (DTTs). These policies make it a robust and transparent tax environment.
Norway’s Tax System overview
| Corporate Income Tax: | 22% |
| Personal Income Tax: | 39.6%, progr. |
| Inheritance Tax: | None |
| Gift Tax: | None |
| Wealth Tax: | 1% – 1.10% |
Legal System
Norway is a parliamentary democracy and constitutional monarchy. The legal system is based on civil law.
Political Status
Norway is not a member of the EU, but is a member of the European Economic Area (EEA), which includes Norway, Iceland, Liechtenstein, and all current EU member countries.
Corporate Income Tax
Companies resident in Norway, and foreign companies managed and controlled from Norway, are subject to tax on worldwide income at a rate of 22%, and 25% for companies in the financial sector.
Personal Income Taxation
Norway imposes income tax on residents based on world-wide income at a combined maximum progressive rate of 39.6% (national and municipal). Capital gain in securities at a rate of 37.4%. Norway abolished gift and inheritance tax in 2014, but levies wealth tax of 1% on capital over NOK 1.7 million, and a 1.10% wealth tax on net wealth over NOK 20 million.
Anti-Avoidance Rules
Norway has General Anti-Avoidance Rules (GAARs), as well as Transfer Pricing and Thin Capitalization rules, and Controlled Foreign Corporation rules.
Controlled Foreign Corporations (CFCs)
CFC rules apply if Norwegian residents own more than 50% of the shares of corporations resident in low-tax jurisdictions, defined as jurisdictions where the tax on corporate profits is less than 2/3 of the Norwegian rate, unless there is a DTT with the jurisdiction of the CFC, and a majority of the income is not passive. If the CFC is resident in an EEA country, CFC rules are not applicable if the company carries out genuine economic activities.
Foreign Trusts
Norway has not ratified the Hague Convention on the Recognition of Trusts. Notwithstanding, Norway has an established practice for the taxation of foreign trusts, and applies CFC rules. Depending on the nature and jurisdiction of the trust, the application of CFC rules may result in imputation of undistributed income of the trust, as well as wealth tax, to Norwegian resident beneficiaries.
Double Tax Treaties (DTTs)
OECD Multilateral Convention
Common Reporting Standard (CRS)
Norway adopted CRS for the automatic exchange of account information, is a party to the Multilateral Competent Authority Agreement (MCAA), and has a number of activated exchange relationships.
FATCA
Norway has a FATCA Model 1 IGA with the US for the automatic exchange of account information.
