NORWAY Law and Practice Contributed by: Bernhard Getz-Jeffreys and Johannes Wiegaard, Ro Sommernes Advokatfirma AS
1.4 Applicable Corporate and Individual Tax Rates The Norwegian corporate tax rate is 22% (as of 1 January 2026). This rate applies uniformly to both companies that are independent tax entities and cor - porate shareholders of tax-transparent entities. Per - sonal shareholders of tax-transparent entities are in addition subject to a personal bracket tax and liable to pay national insurance contributions. The effective tax rate on dividend distributions from limited liability companies or tax-transparent entities is 37.84% (as of 1 January 2026). The taxable profit of a limited liability company is cal - culated on the basis of the company’s accounting profit. Tax adjustments are then made to arrive at the final taxable profit, which is the basis for calculating corporate income tax. Limited liability companies in Norway are taxed on an accrual principle, meaning that income and expenses are recognised and taxed in the year in which they are earned or incurred, regardless of when the payment is actually made. Salary income is taxed on a receipt basis. 2.2 Technology Investments Norway offers several tax incentives for technology investments, with SkatteFUNN as the central instru - ment. The arrangement entitles companies to a 19% tax deduction for R&D project costs approved by the Research Council of Norway. The deduction applies to project costs of up to NOK25 million per year. 2. Corporate Tax Regime 2.1 Taxable Profits Option taxation for start-up companies provides special tax benefits when granting stock options to employees. Private investors can also obtain a tax deduction for investments in start-up companies, with a maximum deduction of NOK1 million per year, resulting in a tax reduction of up to NOK220,000.
2.3 Special Incentives The following are special incentives in Norway for selected industries and companies. Energy and environment: • CO₂ compensation arrangement: Energy-inten - sive companies receive partial compensation for increased costs because of the EU emissions trad - ing system. • Electricity tax reduction: Reduced electricity tax for industrial companies and certain projects consid - • Option taxation for start-up companies: Lenient tax rules for stock options to employees in small start- up companies. • Tax incentives for investments in start-up compa - nies: Individual investors receive a tax deduction of up to NOK1 million per year for investments in start-up companies. Shipping and maritime industry: • Taxation of shipping companies: Reduced tax for shipping companies that opt for tonnage taxation instead of ordinary corporate tax. • Foreign companies using a Norwegian manage - ment company are exempt from local income tax under certain conditions. Agriculture: ered “environmentally friendly”. Start-up companies and SMEs: • Tax exemption for transfer of agricultural property to the next generation, and low net wealth taxation of similar assets. 2.4 Loss Relief Losses can be carried forward indefinitely and deduct - ed from net income in future years. Loss carry back is generally not available, except upon the termination of business activities, if certain conditions are met.
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