Tax rates for companies operating in Norway
Corporate tax in Norway is based on fixed percentages and elements.
Figures for 2023
Tax on profit (CIT) – 22 %
Certain elements may be exempted from profit tax, for instance wins/losses on sale of shares/stocks and more.
National insurance – 14,1 %*
*Varying based on where the company is situated in Norway. 14,1 % is the highest rate.
Cost of an employee
To calculate the cost of having an employee you must factor in all relevant taxes and elements to get the gross amount.
|Gross Wage*||NOK 50 000||NOK 600 000|
|National Insurance||14,1 %||NOK 7 050||NOK 84 600|
|Holiday pay***||10,2 %||NOK 5 100||NOK 61 200|
|National Insurance on holiday pay||14,1 %||NOK 719||NOK 8 629|
|Pension savings****||2,0 %||NOK 1 000||NOK 12 000|
|National Insurance on pension||14,1 %||NOK 141||NOK 1 692|
|Total gross cost||NOK 64 010||NOK 768 121|
|Total factor of gross salary||1,28 (128 %)||1,28 (128 %)|
*Gross wage is normally paid 11 months per year and the employee is paid holiday pay the 12th month.
** From 01.01.2023, there’s an additional 5% employer’s tax for gross wage over NOK 750 000 per year.
***Holiday pay is accrued each month and normally paid the following year during the employees’ annual leave. The holiday pay varies depending on if the company has 20 or 25 paid days holiday. It also differs if the employee is 60 year or more (2,5 % extra accrual)
****Pension savings must be done on employees working in Norway and the minimum rate is 2 %. There are certain exemptions for companies with only one employee and/or employees working part time.
The receival of dividends varies depending on the entity receiving the dividend.
Firstly, a profit tax (CIT) of 22 % is paid by the company paying the dividend.
- A private person will have to pay dividend tax of 37,84 % (Dividend amount, plus a factor of 1,72 multiplied by 22 %). The total marginal tax will then be 51,50 %.
- A company receiving dividends will have to pay a dividend tax of 3 %. This is again dependent on where the dividend is received from. The total marginal tax will then be 25 %. Exemptions and variations to this may be relevant.