With effect from 1 January 2019, the Norwegian tax authorities have introduced a Source Tax system based on the ‘Pay As You Earn’ (PAYE) principle for individuals who are temporarily staying in Norway.
The Norwegian Parliament has passed amendments in the Norwegian Private Limited Liability Companies Act (NO: Aksjeloven - “ASL”) and the Norwegian Public Limited Liability Companies Act (NO: Allmennaksjeloven - “ASAL”), in order to simplify the economic and administrative burden for companies. Some of the amendments came into force 1 January 2019, others with effect from 1 March 2019. Additionally, some amendments will enter into force later. The amendments are such as:
Areas of interest: Legal
Norway currently has a low value VAT and customs relief for consignments not exceeding a value of NOK 350 (appr. 35 EUR). The majority in the Norwegian Parliament has decided to remove this relief from 1. January 2020.
Areas of interest: VAT rules
Published on 8 October 2018, the 2019 National Budget proposes to amend the Norwegian interest deduction limitation rules. The amended rules apply to companies part of a consolidated group, and limit interest deductions on bank loans, bonds and other debt to unrelated parties. The threshold amount, which determines whether the rules apply, is increased to MNOK 25. Where the threshold amount is exceeded, deductions are limited to 25 % of taxable EBITDA. Further, an equity escape clause is introduced, granting full deductions for interests if the taxpayer is able to demonstrate that the equity ratio in the Norwegian part of the company or the Norwegian part of the group is about the same as in the group as a whole. Companies subjected to the new rules are recommended to identify how the new rules may affect them and whether measures should be taken.
Areas of interest: Corporate tax
The national budget for 2019 was presented on 8 October 2018. This article provides an overview of the main proposals regarding corporate taxation, VAT and personal taxation.
Areas of interest: Corporate tax, VAT, personal taxation
Our worldwide tax summaries for 2018/2019 recently got published!
Areas of interest: Corporate tax
The digital economy is blooming as never before. The Internet allows constant delivery of online supplies to consumers all over the world at any time of a day and night. Current VAT rules are not customized to such innovative business solutions - what results in challenges in the collection of VAT and creates burdensome VAT compliance obligations for companies. In this context the European Commission has taken actions to modernise the VAT system and proposed major changes. Is your company prepared?
Areas of interest: VAT
The Revised National Budget was presented today at 1045 am, and provides few surprises. The main message is that the government is keeping a steady course after the tax settlement.
Areas of interest: Corporate tax, VAT, personal taxation
Yes and No.
Country-by-Country Reporting (“CbCR”) notification requirements in Norway exclusively apply to tax residents, cf. Tax Administration Act (TAA) section 8-12 third paragraph. As branches of foreign enterprises are not tax residents, branches are not obliged to make Country-by-Country Reporting notification in Norway.
Areas of interest: Corporate tax
Transfer Pricing is a hotter topic than ever before. Norwegian Tax Authorities scrutinize intra-group transactions, and often claim that the taxpayer has applied incorrect transfer prices. Income taxable to Norway is increased accordingly.
Areas of interest: Corporate tax