Regardless of the country in which we decide to run our company, one thing is certain - we will not run away from fiscal obligations towards the Tax Office. The same applies to companies operating in the Land of the Fjords, and the corporate income tax for companies in Norway is one of the most important. What should you remember about?
Tax amount
The income tax for companies in Norway is 22% of earned income. However, this is not the only obligation towards the tax authorities, which varies depending on the financial results. The amount of social security contributions also depends on the income and currently stands at 11,4%. Thus, in total, 34,4% of income is allocated to the repayment of various types of fiscal liabilities.
Tax thresholds
Worth knowingthat the income tax for companies in Norway increases additionally in proportion to the financial results achieved. There are four tax thresholds that influence the final amount of income tax:
- First fret tax up to NOK 174 requires an additional payment of 1,9% on the generated surplus,
- The second tax threshold up to NOK 245 requires a surcharge of 650% on the generated surplus,
- The third tax threshold up to NOK 617 requires a surcharge of 500% on the generated surplus,
- The fourth tax bracket, up to NOK 964, requires a surcharge of 800% on the generated surplus.
Status as of 2018
What is income?
Considering the issue tax income, it is worth emphasizing what income is in its essence. From the point of view of the Tax Office, this is the most important financial result, based on which it calculates the entrepreneur's liabilities. Income is defined as revenue less costs of obtaining it. Revenue is all the company's inflows, while costs include such expense categories as e.g. accounting services, premises rental costs, purchase of goods for further trading or investments in fixed assets or real estate.
Also read: How to settle tax in Norway ? >>>
REMEMBER! In Norway, all company payments should be made by payment cards or transfers. tax office allows for cash transactions, but only up to 10 Norwegian kroner in one tax year.
Important dates
- At the beginning of the calendar year, the entrepreneur determines what income he will achieve in the coming tax year.
- Advance tax payments are due until March 15, May 15, September 15 and December 15.
- After the end of the year tax return, the entrepreneur is obliged to submit a tax return, which will specify the amount of income achieved as well as the current status of the company. He has until May 31 to do so.
After the end of each tax year, the Tax Office sends document called selvangivelse – this is a preliminary settlement made on the basis of information already available to the tax office. Each entrepreneur is obliged to complete the fields regarding the business business and send it to the tax office. On this basis, Skatteetaten will calculate the income tax due companies in Norway and send it back Skatteoppgjør October 17 at the latest.
