The Norwegian Tax Administration is in charge of the Norwegian corporate tax system. This is a transparent system and should be quite easy to understand.
The corporate tax rate is a flat tax of 22% that applies to the sum of profits and capital gains. In addition, you should be aware of the VAT rates and the employer’s contribution to the National Insurance Scheme.
Employer's national insurance contributions
Employers will need to pay national insurance contributions for their employees.
This contribution is normally set at 14.1% of the employee's salary, yet this figure can be lower depending on where in the country you are based.
Companies are required to register on the VAT Register in Norway once their yearly turnover exceeds NOK 50,000. You do not need to charge VAT on any goods and services before this point.
Once your business is registered in the VAT Register, you must:
- collect VAT on behalf of the Norwegian state
- determine how much VAT you need to pay when importing goods for your company
- report to the Norwegian Tax Administration on the amount of VAT you have paid and collected. These reports need to be based on updated figures.
- pay the difference between VAT that you collect on your sales (output VAT) and the VAT you pay when importing goods (input VAT).