Norway

Proposals for special rules for private consumption in companies

The proposal for new tax rules on private consumption in companies was originally sent for consultation in the spring of 2022. The purpose of these rules is to impose high taxation on, among other things, properties, boats, and airplanes owned by companies.

In the 2024 state budget, the government announced its intention to propose targeted tax rules for private consumption in companies, with an effective date in 2025. However, in the 2025 state budget, it is announced that no proposal for special rules will be presented at this time.

Additional employer social security contributions

In 2023, an additional social security contribution was implemented, entailing 5% extra employer’s contribution on income exceeding NOK 750,000. (i.e. total contributions of 19.1%). The additional employer’s contributions were to be phased out, starting by increasing the income threshold to NOK 850,000 for 2024.

The additional employer's contributions has been abolished from 1 January, 2025, and should then no longer be reported in the a-melding. Companies with payroll expenses shall therefore from 2025 calculate employer's national insurance contributions according to the general rates, up to 14.1%.

Changes in exit taxation

The rules on the taxation of latent capital gains, etc., upon emigration have been amended from 1 Januar 2025. The type of assets included are shares and equity certificates in companies domiciled in Norway, such as mutual funds, cooperatives, etc. Furthermore, shares in partnerships/transparent entities for tax purposes, shares and interests in equivalent foreign companies, and subscription rights to shares, options, and other financial instruments where the underlying asset is an asset in a Norwegian or foreign company are also included. The new rules stipulate that individuals moving from Norway will be subject to an exit tax, which can be paid in full upon emigration, in installments over 12 years, or in full after 12 years. If the taxpayer pays the exit tax in installments over 12 years, no interest will accrue. However, if the taxpayer chooses to delay the exit tax in full for 12 years, the tax amount will include interest. Additionally, share savings accounts (Nw. aksjesparekonto) and capital insurance policies would be included as assets subject to exit tax.