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Understanding Norway’s Corporate Tax System

Norway, known for its strong economy and business-friendly environment, maintains a well-structured and transparent corporate tax regime. For businesses looking to establish themselves in Norway, understanding corporate tax obligations is essential for ensuring compliance and optimizing financial planning. In this article, we explore Norway’s corporate tax rates, incentives, global taxation rules, and the filing process. Scandicorp is here to guide you every step of the way.

Corporate Tax Rate for Limited Liability Companies (LLCs)

The corporate tax rate in Norway is a flat 22% on net profits for Limited Liability Companies (Aksjeselskap or AS)​. This rate applies uniformly across most sectors, making Norway’s tax structure both predictable and competitive compared to other Nordic countries.

For companies operating in specific industries, higher rates may apply:

  • Petroleum Extraction and Pipeline Transportation: A special tax rate of 51% in addition to the standard 22% applies to income derived from petroleum activities​.
  • Shipping Companies: Shipping companies benefit from a tonnage tax regime, where income from shipping operations is exempt from income tax, but a small tonnage fee is levied instead​.

Tax Incentives for Startups and Small Businesses

Norway actively encourages innovation and entrepreneurship through tax incentives and support programs, including:

  • SkatteFUNN R&D Tax Incentive: Startups and small businesses can claim tax deductions for expenses related to research and development. Companies can receive up to 19% tax relief on qualifying R&D costs, regardless of profitability.
  • Reduced Audit Requirements: Small companies with revenue below NOK 5 million, fewer than 10 employees, and a balance sheet total under NOK 20 million are exempt from mandatory audits, reducing compliance costs​.
  • Innovation Grants: Organizations like Innovation Norway offer grants, loans, and advisory services for startups, particularly in technology, sustainability, and export-focused businesses.

Scandicorp specializes in helping startups identify and apply for these incentives, ensuring your business leverages every available benefit.

Taxation of Foreign Income and Global Assets

Norway operates on a worldwide taxation system for resident companies. This means Norwegian companies are taxed on their global income and assets. Here are key considerations:

  • Double Taxation Agreements (DTAs): Norway has an extensive network of tax treaties to prevent double taxation of foreign income. Companies can claim credits for taxes paid abroad or benefit from exemptions under these treaties.
  • Permanent Establishment (PE): Non-resident companies with a permanent establishment in Norway are liable for taxes on income generated within Norwegian territory​.
  • Controlled Foreign Company (CFC) Rules: Norwegian tax authorities may tax profits from subsidiaries in low-tax jurisdictions if the parent company holds significant control (25% or more ownership).

For businesses with international operations, Scandicorp provides expert advice on structuring to remain compliant while minimizing tax exposure.

Filing Corporate Taxes in Norway

Filing corporate taxes in Norway involves several key steps and deadlines:

The Filing Process

  1. Advance Tax Payments: Norwegian companies are required to make two advance tax payments annually, based on the previous year’s tax assessment.
  2. Annual Tax Return: Companies must file their annual corporate tax return online through the Norwegian Tax Administration’s portal.
  3. Financial Reporting: All companies must submit audited or unaudited annual accounts to the Brønnøysund Register Centre.

Key Deadlines

  • Annual Tax Return: Due by May 31st following the fiscal year-end.
  • Advance Payments: Typically due in February and April each year.
  • Final Assessment and Settlement: After submitting the tax return, any outstanding tax must be settled by November 15th.

Failure to meet these deadlines may result in penalties and interest on overdue amounts. Scandicorp offers tax compliance services, ensuring timely submissions and accurate reporting for your business.

Why Partner with Scandicorp?

Navigating Norway’s corporate tax system can be complex, particularly for international businesses. At Scandicorp, we provide:

  • Corporate Tax Advisory: Expert guidance on corporate tax planning, compliance, and optimization.
  • Filing and Compliance Support: Assistance with advance payments, annual returns, and financial reporting.
  • International Tax Solutions: Ensuring proper structuring for businesses with global operations to minimize tax liabilities.
  • Access to Incentives: Identifying applicable grants, R&D tax incentives, and other financial support.

Our team combines local expertise with a global perspective to deliver tailored solutions that help your business thrive in Norway.

Next Steps

Norway’s corporate tax system offers transparency, competitiveness, and opportunities for businesses. Whether you are a startup seeking tax incentives or an international company navigating cross-border taxation, understanding the tax structure is vital. Scandicorp ensures your company remains compliant, efficient, and positioned for growth.

Contact Scandicorp today for personalized advice and comprehensive support on corporate taxation in Norway.