Corporate Taxation in Norway in 2026: Rates for AS, ENK, NUF and Other Business Forms
Analysis of corporate taxes in Norway: 22% rate, differences by company type, VAT, deductions and 2026 updates. For entrepreneurs and investors.
Norway's corporate tax system is known for its clarity and predictability, making it an attractive destination for international business. With a unified 22% corporate tax rate for most business forms and a well-developed infrastructure for entrepreneurs, Norway offers a stable environment for business growth. This article provides a comprehensive overview of corporate taxation in Norway, covering different business structures, applicable rates, VAT requirements, and available deductions.
Overview of Corporate Taxation in Norway
Key Principles
Corporate taxation in Norway is administered by the Norwegian Tax Administration (Skatteetaten) and follows a territorial principle with worldwide taxation for resident companies. The system is designed to be neutral across different industries, ownership forms, and financing methods.
Norwegian resident companies are taxed on their worldwide income at a flat rate of 22%. Non-resident companies are taxed only on Norwegian-source income, typically when they have a permanent establishment in Norway.
Standard Corporate Tax Rate
This rate applies to most corporate entities including AS, NUF, and partnerships at the corporate level. The rate has remained stable at 22% and is competitive with other Nordic countries.
Business Forms and Tax Treatment
AS (Aksjeselskap) - Limited Liability Company
Tax Rate
22%
on corporate profits
Minimum Capital
30,000 NOK
required at registration
Full limited liability protection for shareholders
Dividends taxed at corporate level (22%) plus shareholder level with 1.72 multiplication factor
Combined effective tax rate on dividends: approximately 51.5% for amounts above risk-free return
Most common form for medium to large businesses
ENK (Enkeltpersonforetak) - Sole Proprietorship
Tax Rate
22% + progressive
up to 47.4% (treated as personal income)
Income taxed as personal income of the owner
Subject to 22% base tax + progressive bracket tax + 7.8% social contributions
No limited liability - owner personally responsible for all debts
No minimum capital requirement - easiest and cheapest to establish
Can deduct business expenses from taxable income
Ideal for small businesses and freelancers
NUF (Norskregistrert Utenlandsk Foretak) - Branch of Foreign Company
Tax Rate
22%
if permanent establishment in Norway
Branch of a foreign parent company registered in Norway
Taxed at 22% on Norwegian-source income if it constitutes a permanent establishment
25% withholding tax on dividends and profit distributions to foreign parent (subject to tax treaty reductions)
Parent company has full liability for branch operations
Simplified registration process compared to AS
Registration fee: approximately 2,400 NOK
Partnerships (ANS/DA) - General and Limited Partnerships
Tax Treatment
Pass-through taxation at partner level
22% + progressive
up to 47.4% for individual partners
Income distributed to partners proportionally to ownership shares
Partners taxed individually on their share as personal income
ANS (Ansvarlig Selskap): all partners have unlimited liability
DA (Delt Ansvar): limited liability for some partners
VAT (Merverdiavgift) and Other Indirect Taxes
Value Added Tax (VAT) Rates 2026
| Category | VAT Rate |
|---|---|
| Standard rate (most goods and services) | 25% |
| Food and non-alcoholic beverages | 15% |
| Public transport, cultural services, accommodation | 12% |
| Certain services (healthcare, education, financial) | 0% (exempt) |
Registration threshold: Businesses with annual turnover exceeding 50,000 NOK must register for VAT
VAT Filing and Compliance
Filing Frequency
Most businesses file VAT returns every two months (bi-monthly). Larger businesses may be required to file monthly, while smaller businesses may qualify for quarterly filing.
Filing Method
All VAT returns must be submitted electronically through the Altinn portal or Skatteetaten's online system.
Payment Deadline
VAT payments are typically due by the 5th day of the month following the end of the reporting period.
Employer Social Security Contributions (Arbeidsgiveravgift)
Employers must pay social security contributions on employee salaries to fund Norway's comprehensive social insurance system. These contributions are separate from and in addition to corporate income tax.
Standard Rate
14.1%
On gross salaries and taxable benefits for most businesses
Higher Rate
19.1%
Additional 5% on salaries exceeding 850,000 NOK per year (total rate)
Note: Rates may be lower in certain sparsely populated regions (zones). Financial sector companies may face additional financial activity tax.
Tax Deductions and Incentives
Operating Expense Deductions
Businesses can deduct all ordinary and necessary expenses incurred in generating taxable income. This includes:
Salaries and wages
Rent and utilities
Office supplies and equipment
Marketing and advertising
Professional services (legal, accounting)
Interest on business loans
Depreciation (Tax Depreciation)
Capital assets are depreciated over time according to declining-balance methods. Different asset categories have different depreciation rates:
| Asset Category | Annual Rate |
|---|---|
| Office equipment, fixtures | 20% |
| Vehicles, machinery | 20-30% |
| Computers, software | 30% |
| Buildings, commercial property | 2-4% |
SkatteFUNN - R&D Tax Credit Scheme
SkatteFUNN is Norway's primary tax incentive for research and development activities. It's a rights-based scheme that provides a tax credit for eligible R&D expenses.
Tax Credit Rate
19%
Of eligible R&D costs (previously 25%, adjusted in recent reforms)
Maximum Annual Limit
25M NOK
Maximum deductible R&D costs per project (for large enterprises)
Projects must be pre-approved by the Research Council of Norway
Available to companies of all sizes conducting R&D in Norway
Eligible costs include salaries, equipment, and external R&D services
SMEs may have higher limits per project (up to 5.5M NOK at higher rates)
Special Tax Regimes
Petroleum Tax Regime
Companies engaged in petroleum activities on the Norwegian Continental Shelf face a significantly higher tax regime due to the extraordinary returns from oil and gas resources.
Consisting of 22% ordinary corporate tax + 56% special petroleum tax
Sequential calculation: ordinary tax is deducted from special tax base
Technical special tax rate of 71.8% maintains overall 78% effective rate
Neutral system design ensures profitable projects remain profitable after tax
Special tax losses are reimbursed at tax settlement the following year
Onshore Wind Power Resource Rent Tax
Introduced January 1, 2024, this tax applies to net income from onshore wind power production.
Ordinary Corporate Tax
22%
Resource Rent Tax
25%
Combined effective marginal tax rate: 47% on wind power production income
Tonnage Tax for Shipping
Norwegian shipping companies can opt for the tonnage tax regime, which provides permanent tax exemption for qualifying shipping income based on vessel tonnage rather than actual profits.
Available to qualifying vessels including bulk tankers, container vessels, car carriers
Must maintain strict separation between tonnage-taxed and non-tonnage activities
Approved by EFTA Surveillance Authority for ten-year periods
Companies falling outside requirements revert to ordinary 22% corporate tax
Financial Sector Additional Tax
Certain financial institutions are subject to a higher corporate tax rate of 25% (compared to the standard 22%).
Tax Compliance and Reporting
Annual Tax Return
Filing Deadline
May 31
For the year following the income year
Filing Method
Electronic submission through Altinn portal or Skatteetaten online system
Advance Tax Payments
Most companies pay corporate tax through an advance payment system with two installments:
First Installment
February 15
50% of advance tax
Second Installment
April 15
Remaining 50%
Note: Petroleum companies follow a different schedule with six installments throughout the year.
A-melding (Employer Reporting)
Employers must submit monthly A-melding reports by the 5th of each month, detailing:
Salaries and benefits paid to employees
Tax deductions withheld
Employer social security contributions
Record Keeping Requirements
Financial Records
All businesses must maintain accurate accounting records for a minimum of 5 years (some records must be kept for 10 years)
Audit Requirements
AS companies are generally required to have an auditor. Annual accounts must be prepared, audited, and approved within six months of fiscal year-end.
Changes for 2026 and Recent Updates
Key Updates for 2026
Corporate Tax Rate Stable
The standard corporate tax rate remains at 22% for 2026, providing continuity and predictability for businesses.
Increased Deduction Thresholds
Various deduction thresholds have been increased, including the standard deduction ceiling of 37,100 NOK for certain categories.
Updated Interest Deduction Rules
Stricter interest deduction limitations for some holding companies and fund structures, particularly regarding taxation of interest income.
Employer Social Security Threshold
The threshold for additional employer contributions remains at 850,000 NOK, continuing the phase-out of the temporary 5% surcharge introduced in 2023.
Pillar Two Implementation
Norway continues implementation of OECD Pillar Two rules, with the Undertaxed Profits Rule (UTPR) taking effect for the 2025 income year, impacting large multinational groups.
Recent Tax Reforms
Shareholder Model Adjustments
The multiplication factor for dividends remains at 1.72 for 2026, maintaining the effective combined tax rate of approximately 51.5% on distributed profits.
Risk-Free Rate for 2026
The risk-free return rate for calculating tax-free dividend amounts is set at 3.0% for 2026.
Digital Tax Administration
Skatteetaten is migrating services from Altinn, with new digital platforms rolling out through 2026, affecting how businesses interact with tax authorities.
Registration and Setup Process
Company Registration Requirements
All businesses operating in Norway must register with Brønnøysundregistrene (the Brønnøysund Register Centre) to obtain an organization number.
AS Registration
~3,200 NOK
Plus minimum capital of 30,000 NOK
NUF Registration
~2,400 NOK
Simplified process for branches
ENK Registration
Minimal cost
Simple online registration
Required Documents for AS Formation:
Minutes from founding meeting outlining headquarters, board members, and share allocation
Declaration from bank, auditor, or lawyer confirming share capital payment
Articles of association (vedtekter) regulating internal operations
Shareholder register (aksjeeierbok) with accurate ownership information
Tax Registration Steps
Register with Skatteetaten
Obtain tax identification number and ensure legal operation capability
VAT Registration
Register for VAT if turnover exceeds 50,000 NOK annually
Employer Registration
Register as employer if hiring employees to handle payroll taxes and social contributions
Set Up Accounting System
Establish compliant bookkeeping and accounting procedures meeting Norwegian standards
Frequently Asked Questions
What is the corporate tax rate in Norway in 2026?+
The standard corporate income tax rate in Norway is 22% on net profits for most business forms. This rate applies to AS (limited liability companies), NUF (branches of foreign companies), and other corporate entities. The rate remains unchanged from previous years.
What is the difference between AS, ENK, and NUF in Norway?+
AS (Aksjeselskap) is a limited liability company with 22% corporate tax and requires minimum capital of 30,000 NOK. ENK (Enkeltpersonforetak) is a sole proprietorship taxed as personal income (22% + progressive up to 47.4%) with no limited liability. NUF (Norskregistrert Utenlandsk Foretak) is a branch of a foreign company taxed at 22% if it has a permanent establishment in Norway.
What is the VAT rate in Norway in 2026?+
The standard VAT (merverdiavgift) rate in Norway is 25%. There are reduced rates of 15% for food and 12% for transport, cultural services, and accommodation. Registration is required if annual turnover exceeds 50,000 NOK.
What are employer social security contributions in Norway?+
Employers must pay social security contributions (arbeidsgiveravgift) at a standard rate of 14.1% on employee salaries. For salaries exceeding 850,000 NOK per year, an additional 5% contribution applies (total 19.1%). Rates may be lower in certain sparsely populated regions.
How is dividend income taxed in Norway for shareholders?+
For personal shareholders, dividends are subject to corporate tax of 22% at the company level. Then, on the shareholder level, dividends are increased by a factor of 1.72 and taxed at 22%, resulting in a combined effective rate of approximately 51.5% on distributed profits above the risk-free return.
What is the petroleum tax rate in Norway?+
Companies engaged in petroleum activities on the Norwegian Continental Shelf face a total tax rate of 78%. This consists of the ordinary 22% corporate tax plus a special petroleum tax of 56%. The sequential calculation system ensures the effective rate remains at 78%.
What business deductions are available in Norway?+
Businesses can deduct all ordinary operating expenses, depreciation on assets, interest payments, and R&D costs. The SkatteFUNN scheme provides a tax credit of up to 19% (previously 25%) on R&D expenses. Capital allowances vary by asset type, from 2% for buildings to 20% for machinery.
What are the registration costs for companies in Norway?+
Registration costs vary by business form. For AS (limited liability company), the fee is approximately 3,200 NOK. For NUF (branch of foreign company), it's around 2,400 NOK. Companies must register with Brønnøysundregistrene and obtain an organization number.
Sources and Further Reading
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Disclaimer
This article provides general information about corporate taxation in Norway and should not be considered professional tax or legal advice. Tax laws are complex and subject to change. Business structures, deductions, and compliance requirements vary based on specific circumstances. For specific situations, please consult with a qualified tax advisor, accountant, or the Norwegian Tax Administration (Skatteetaten). The information is current as of January 2026 but rates and rules may be updated by the Norwegian Parliament.