ECOVIS presents below an overview of the current tax rates for employees and companies. ECOVIS is an international tax advisor with presence in Oslo, Norway.
Tax in Norway for employees and corporations for 2023
The Norwegian tax system is progressive and thus the tax to be paid on gross income varies depending on the amount.
Roughly, these are the tax rates for the following income levels for calendar year 2023:
NOK 400 000 – Tax NOK 85 317 (21,3 %)
NOK 500 000 – Tax NOK 119 217 (23,8 %)
NOK 600 000 – Tax NOK 153 117 (25,5 %)
NOK 700 000 – Tax NOK 192 436 (27,5 %)
The actual deduction of taxes is done based on a tax card. The tax card states the tax percentage or amount to deduct on (all) gross salary levels.
It is normal that a tax card is issued with 10,5 months deduction, meaning that it is not paid withholding tax on holiday pay, and December salary is paid with 50 % of normal withholding tax deducted. Indirectly, it is then deducting more withholding taxes on the remaining 10,5 months.
To learn more about taxation for wage receivers click here.
The taxes paid by companies and corporations in Norway are based on fixed percentages.
Tax on ordinary income in 22 %.
It is often complicated to estimate the exact tax as there may be exemptions from the ordinary tax in a company’s accounts, such as gains and losses on shares and other relevant elements.
All companies must submit annual tax return/accounts. Foreign companies registered in Norway without a permanent establishment might apply for exemption for submitting annual tax return. Companies registered in the “Foretaksregisteret” (Business Register) must also submit annual accounts.
Norwegian companies exceeding an income of NOK 6 000 000 must also appoint an auditor to audit the accounts prior to submitting the annual tax papers and accounts.Norway has a portal called “Altinn” which is the main way of submitting and communicating with the authorities in Norway (tax, welfare, business register etc.). Most accounting systems in Norway have an integration with this portal meaning that the flow of information is digitalized.
To learn more about tax for companies in Norway click here.