Norway's Tax System and Framework in 2025

Norway operates under a territorial tax regime, where resident companies are taxed on their worldwide income, while non-resident entities are liable only for taxes on income generated within Norway. The Ministry of Finance serves as the top-level authority overseeing taxation, with the Norwegian Tax Administration headquartered in Oslo. The country is divided into five regional tax offices responsible for local enforcement and collection. Tax registration is managed through these decentralized offices, ensuring streamlined administration across municipalities.

Taxes in Norway fall into two broad categories: direct and indirect. Key levies include corporate and personal income taxes, wealth and property taxes, social security contributions, value-added tax (VAT), excise duties, customs, and environmental taxes. Corporate income tax is assessed annually, with advance payments typically due on February 15 and April 15, based on the previous year’s taxable income. This system helps maintain steady revenue flow and supports fiscal planning.

Main Taxes and Rates in Norway

Corporate and Personal Income Tax

Both domestic and foreign-owned businesses are subject to the same corporate income tax rate, which was reduced from 23% to 22% in 2019—a rate that remains unchanged through 2025. Partnerships and limited partnerships are not taxed at the entity level; instead, profits pass through to individual partners, who report them on their personal tax returns. A notable exception applies to oil and gas enterprises, which face an additional special petroleum tax. Since 2017, this surcharge has brought the total effective tax rate for petroleum activities to 78%, combining the standard corporate rate and the 54% special tax—among the highest in the world for resource extraction.

Personal income tax follows a progressive structure. As of 2025, the national base rate stands at 22%, though residents of Tromsø and Finnmark benefit from a reduced municipal rate of 18.5%. Additional brackets apply for higher earners, with surcharges based on income levels and net wealth, reflecting Norway’s commitment to equity and redistribution.

Value-Added Tax (VAT)

VAT is imposed on most goods and services sold within Norway. The standard rate is 25%, applicable to general consumption items. Reduced rates include 15% for food products, 12% for certain passenger transport and cultural services, and 0% for exports, printed media such as newspapers and books, and specific digital publications. Businesses or individuals whose annual turnover exceeds NOK 50,000 must register for VAT and file periodic returns. Notably, since January 1, 2023, the VAT e-invoicing rules have been extended to cover all digitally delivered services, aligning Norway with EU digital tax standards and improving compliance for cross-border digital transactions.

Excise Duties

Norway imposes excise taxes on select goods to influence consumption behavior and generate revenue. These include levies on alcohol, tobacco, electricity usage, and air travel. For instance, tobacco products face high excise rates to discourage smoking, while aviation fuel is taxed per passenger to support sustainable transport policies. Most excise revenue comes from imported goods, reinforcing border-adjusted taxation principles.

Social Security Contributions (National Insurance)

The National Insurance Scheme funds Norway’s comprehensive welfare system. Employers contribute between 0% and 14.1% of an employee’s gross salary, depending on the municipality and sector. Employees pay a flat 8.2% contribution on their wages, deducted at source. These contributions finance pensions, healthcare, unemployment benefits, and parental leave programs, forming a cornerstone of Norway’s social model.

Inheritance and Gift Tax

In a move to support family-run businesses and intergenerational wealth transfer, Norway abolished inheritance and gift taxes in 2014. This reform has encouraged long-term business continuity and private investment, particularly among rural and SME owners. While no direct tax applies, large transfers may still be reviewed for potential capital gains implications if assets are later sold.

Other Levies

Norway also collects various niche taxes aimed at public health, environmental protection, and resource management. These include taxes on cosmetics, mineral water, pet food, and carbon emissions. Property owners face wealth taxation on real estate and unlisted shares exceeding certain thresholds—part of broader net wealth assessments conducted annually.

Digital Services Tax

To address the growing digital economy, Norway expanded its VAT framework effective 2023 to include remote digital services provided by foreign vendors. Platforms offering streaming, online subscriptions, cloud storage, and software-as-a-service must now collect and remit VAT, regardless of their physical presence. This ensures fair competition between local and international providers and strengthens tax integrity.

Carbon Tax

Aligned with EU climate legislation under the 2021–2030 framework, Norway enforces one of the world’s earliest and most robust carbon pricing systems. The current rate is NOK 1.78 per standard cubic meter of natural gas and NOK 2.03 per liter of crude oil or condensate. Revenue funds green innovation and climate adaptation projects. Offshore installations in the North Sea are also covered, reinforcing decarbonization efforts in the energy sector.

Special Economic Zones

As of 2025, Norway does not operate any special economic zones or free trade areas. All regions adhere uniformly to national tax laws, ensuring consistency and transparency. However, certain Arctic and northern territories receive targeted subsidies and infrastructure support to promote balanced regional development, particularly in fisheries, renewable energy, and tourism sectors.

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