Norway Accounting & Tax Glossary

Norwegian private limited company. The most common business structure for active trading. Minimum share capital NOK 30,000. Registered with Brønnøysundregistrene (BRREG). Shareholders have limited liability — personal assets are protected.

Norwegian sole trader structure (Enkeltpersonforetak). No separate legal entity — business income is personal income. Must register with Enhetsregisteret if turnover exceeds NOK 50,000. All profit taxed as personal income including trinnskatt (up to 17.6%) and trygdeavgift (11% for self-employed). No minimum capital required.

Norwegian system for taxing dividends and capital gains for personal shareholders of AS companies. Dividends and gains above a risk-free return (skjermingsfradrag) are grossed up by 1.72 and taxed at 22%, producing an effective rate of 37.84%. Dividends below the risk-free threshold are tax-free.

Norwegian participation exemption. Dividends and capital gains between qualifying Norwegian and EEA companies are 97% exempt from tax (3% included at 22% = effective 0.66% tax). Prevents cascade taxation in corporate groups. Does not apply to non-EEA companies in low-tax jurisdictions.

Norwegian value added tax. Standard rate 25%. Reduced rate 15% for food and non-alcoholic beverages (not restaurant meals). Low rate 12% for passenger transport, hotel accommodation, cinema, and sport events. Registration threshold NOK 50,000/year.

Norwegian personal income tax system. Flat 22% ordinary income tax on net income, plus trinnskatt (bracket tax) on gross income up to 17.6%, plus 7.9% trygdeavgift (national insurance) on earned income. Total marginal rate on highest earners can exceed 47%.

Norwegian corporate income tax. A flat 22% rate applies to all taxable profits of Norwegian AS (Aksjeselskap) companies. No regional variation. Financial companies (banks, insurance) pay 25%.

Dividend paid from a Norwegian AS. When paid to a personal shareholder: taxed at effective 37.84% rate (dividend × 1.72 × 22%) above the skjermingsfradrag. When paid between Norwegian/EEA AS companies: 97% exempt under Fritaksmetoden. Dividends can only be paid from distributable equity.

Norwegian employer's social security contribution. National rate 14.1% on gross wages. Significantly reduced rates in northern and remote regions (zone 1a to zone 5) designed to encourage employment in less-populated areas. Paid by the employer, not the employee.

Norway's central business register authority, based in Brønnøysund. Manages the Foretaksregisteret (Company Register) and Enhetsregisteret (Entity Register). All AS companies must register here. Issues the 9-digit Organisasjonsnummer on registration.

Norway's national tax authority. Manages all Norwegian taxes including personal income tax, corporate tax, MVA (VAT), wealth tax, and inheritance tax. Digital services via skatteetaten.no. Business filings use Altinn.no portal.

Annual mandatory report for all Norwegian AS companies detailing all shareholders, share transactions, dividends paid, and skjermingsfradrag (risk-free return deduction). Filed annually by 31 January via Altinn. Feeds Skatteetaten's Aksjonærregisteret (shareholder register).