This article gives an overview of the main features of the Norwegian tax system for companies and individuals, with emphasis on issues relevant to international businesses and foreign nationals. It is written for foreign businesses, investors and individuals with tax questions in Norway. Rates apply to the 2026 income year and are adjusted annually in the state budget; see the Norwegian Tax Administration’s rates.
Corporate income tax
Companies resident in Norway pay tax at 22% on their net income (ordinary income). Companies subject to the financial activities tax pay 25%. Resident companies are taxed on their worldwide income, subject to tax treaties.
Non-resident companies are taxed on income from business carried on in Norway and certain other Norwegian-source income. Partnerships are transparent for tax purposes, so the partners are taxed on their share of the income.
Calculating taxable profit
The starting point is the financial statements, adjusted for differences between accounting and tax rules.
Income: income from work, capital and business is as a main rule taxable, including interest and gains.
Deductions: costs incurred to acquire, secure or maintain taxable income are as a main rule deductible. Some costs, such as bribes and penalties, are not deductible.
Depreciation: most tangible assets and goodwill are depreciated on a declining-balance basis by asset group, at rates set by statute. Certain intangible assets are depreciated on a straight-line basis.
Losses: tax losses may be carried forward without time limit.
Participation exemption method
Under the participation exemption method (Section 2-38 of the Tax Act), corporate shareholders are as a main rule exempt from tax on dividends and gains on shares. 3% of dividends received is included in taxable income, unless the recipient owns more than 90% of the distributing company and certain other conditions are met. Special rules apply to holdings in low-tax countries and in companies outside the EEA. See our article on the participation exemption method.
Interest limitation
The interest limitation rule (Section 6-41 of the Tax Act) can restrict deductions for net interest expenses exceeding 25% of taxable EBITDA. For companies in a group, the rule applies when net interest expenses for the Norwegian part of the group exceed a threshold of NOK 25 million. Lower thresholds apply to companies outside a group and to interest paid to related parties.
Group contributions
Norway has no consolidated group taxation, but companies in a group where the parent owns more than 90% of the shares and votes may transfer taxable profits through deductible group contributions. Certain transfers of assets within such groups can also be made without immediate taxation.
Special tax regimes
Petroleum: in addition to the 22% corporate tax, a special tax applies at a formal rate of 71.8%, giving a marginal tax rate of 78%.
Shipping: qualifying shipping companies may opt into the tonnage tax regime, under which shipping income is exempt from ordinary corporate tax and a tonnage-based tax applies instead.
Hydropower: hydropower production is subject to a resource rent tax in addition to ordinary corporate tax. The formal rate for 2026 is 57.7%, corresponding to an effective rate of 45%.
Financial activities tax: companies in the financial sector pay 25% tax on ordinary income and a tax of 5% on wages.
International aspects
Companies incorporated in Norway, or effectively managed from Norway, are as a main rule tax resident here. Non-resident companies are taxed on income from a permanent establishment in Norway, subject to limitations in tax treaties. Norway has a large network of tax treaties, generally based on the OECD Model Convention.
Withholding tax on dividends
Dividends paid by Norwegian companies to foreign shareholders are as a main rule subject to withholding tax of 25% (Section 10-13 of the Tax Act). The rate is often reduced under tax treaties. Corporate shareholders genuinely established in the EEA may be exempt under the participation exemption method.
Exit taxation
Exit tax rules may apply to individuals who cease to be tax resident in Norway, and to companies that move their tax residency or assets out of Norway.
Transfer pricing and controlled foreign companies
Transactions between related parties must be priced at arm’s length (Section 13-1 of the Tax Act). Documentation requirements apply to larger groups. Norwegian shareholders in controlled companies in low-tax countries may be taxed under the NOKUS rules. See our article on the NOKUS rules.
Tax administration
Companies pay advance tax for the income year in instalments in the following year and file a tax return by 31 May. Additional tax may be imposed where incorrect or incomplete information has been given.
Anti-avoidance
A general anti-avoidance rule (Section 13-2 of the Tax Act) allows the tax authorities to disregard transactions where the main purpose is to obtain a tax advantage and it would be contrary to the purpose of the tax rules to base taxation on the transaction. Special rules also apply to the use of tax positions following changes in ownership.
Individual taxation
Individuals resident in Norway are taxed on their worldwide income and wealth. For 2026:
Ordinary income (net income after deductions) is taxed at 22%.
Bracket tax applies to personal income such as wages and pensions, at progressive rates from 1.7% to 17.8%. The highest rate applies to income above NOK 1,467,200.
Social security contributions are 7.6% on employment income.
Wealth tax applies to net wealth above NOK 1,900,000, at a combined rate of 1.0%, rising to 1.1% above NOK 21.5 million.
Foreign employees may be taxed under the PAYE scheme. See our articles on wealth tax for foreign residents and on the tax return for foreign employees.
Value added tax (VAT)
The general VAT rate is 25%. Reduced rates of 15% (food and certain other supplies) and 12% (for example passenger transport and accommodation) apply, and certain supplies are zero-rated or exempt.
Registration is required when taxable supplies exceed NOK 50,000 within 12 months.
Place of supply rules determine whether cross-border supplies are subject to Norwegian VAT.
Reverse charge applies to certain services purchased from abroad.
VAT returns are as a main rule filed every two months.
Capital goods adjustment rules apply where the VAT-liable use of certain assets changes.
Foreign businesses without a place of business in Norway must, as a main rule, register through a VAT representative.
See our article on VAT in Norway.
How we can help
We assist businesses and individuals with Norwegian tax and VAT questions, including establishment in Norway, cross-border situations and dealings with the Norwegian Tax Administration. You can read more about the firm at advokats.no or get in touch through our contact page.
This article provides general information as of 29 October 2026 and is not legal advice for your specific situation.
