The aim of Norway’s government is that the tax system shall be competitive in order to attract foreign investment. During the last decades the tax rate has been reduced and the tax base has been widened.

Prior to setting up a business in Norway, it is important to get an assessment of whether or not the business activities will be taxable to Norway. To this extent, if a foreign company’s business is taxable in Norway, the activities will normally be subject to the same tax principles and tax rates as Norwegian companies: corporate income tax, employer’s social security contribution and value added tax.

Companies that are resident abroad are only subject to tax on their economic activities in Norway. All business activities in Norway or managed from Norway are generally subject to Norwegian tax, unless otherwise provided for in an applicable tax treaty.

If the company generates income taxable to Norway, the company is obliged to submit an annual tax return. There is no specific corporate tax registration, but the tax office expects that all registered entities comply with the various reporting obligations and file the corporate tax return.

The international tax team at Magnus Legal hold extensive knowledge of Norwegian taxation for both companies and individuals. We regularly assist foreign companies in establishing a business structure in Norway. We offer an assessment of the tax liability for both the company and its employees. Furthermore, we assist in the proper filing of tax returns and address the unique complexities that may arise.