What is the corporate tax rate in Norway?

Norway's corporate income tax, known as selskapsskatt, is levied at a flat 22% rate on the taxable profits (alminnelig inntekt) of Norwegian AS (Aksjeselskap) and ASA (Allmennaksjeselskap) companies. This flat rate applies with no graduated brackets and no regional variation — every krone of taxable profit in a standard Norwegian company faces the same 22% rate.

The financial sector surcharge

Financial companies — banks, insurance companies, and other regulated financial institutions — pay 25% corporate tax rather than the standard 22%. This 3-percentage-point surcharge was introduced because most financial services are exempt from MVA (Norwegian VAT), meaning the financial sector does not contribute to public finances through consumption taxes in the same way as other industries.

Taxable income calculation

Corporate tax is levied on alminnelig inntekt — taxable income that starts with accounting profit and adjusts for Norwegian tax law differences:

• Depreciation: accounting depreciation is replaced by saldoavskrivning (declining balance depreciation) at prescribed statutory rates. Different asset groups (saldogrupper A–J) have different rates, ranging from 2% for buildings to 30% for electronic data processing equipment.
• Dividends from Norwegian and EEA AS companies: 97% exempt under Fritaksmetoden (see below). Only 3% is taxable at 22%, producing an effective rate of 0.66%.
• Capital gains on shares in qualifying companies: 100% exempt under Fritaksmetoden.
• Interest deduction limitations (rentebegrensning): net related-party interest expense exceeding 25% of EBITDA is non-deductible in the year incurred (but can be carried forward for 10 years).
• Tax losses: carried forward indefinitely with no time limit.

Fritaksmetoden — the participation exemption

Fritaksmetoden is Norway's participation exemption system that prevents cascade taxation in corporate groups. When a Norwegian AS receives a dividend from another Norwegian or EEA AS, 97% of the dividend is exempt from corporate tax. Only 3% is included in taxable income and taxed at 22%, producing an effective tax rate of just 0.66% on inter-company dividends.

Capital gains on selling shares in qualifying companies (Norwegian or EEA AS companies not in low-tax jurisdictions) are fully 100% exempt under Fritaksmetoden — no 3% rule applies to gains.

This makes the Norwegian holding company (holdingselskap) structure highly tax-efficient: profits can be accumulated in an AS at 22% and dividends can pass between group companies at 0.66% effective tax.

Tax on dividends to personal shareholders

When AS profits are distributed to personal shareholders, Norway's Aksjonærmodellen applies. Dividends above a risk-free return threshold (skjermingsfradrag) are grossed up by a factor of 1.72 and taxed at 22%, producing an effective personal tax rate of 37.84%.

The combined tax burden on corporate profits distributed to a personal shareholder is: - Company pays 22% selskapsskatt on NOK 100 profit → NOK 78 after-tax - Personal shareholder receives NOK 78 dividend (above skjermingsfradrag) - Personal tax: NOK 78 × 1.72 × 22% = NOK 29.52 - Total tax: NOK 22 + NOK 29.52 = NOK 51.52 out of NOK 100 → combined effective rate 51.5%

This high combined rate is why many Norwegian AS owners structure their affairs to accumulate retained earnings in a holding company (where dividends move tax-efficiently at 0.66%) and only take personal dividends as needed.

SkatteFUNN R&D tax credit

Norway's SkatteFUNN scheme provides a 19% direct tax credit on qualifying R&D costs, up to NOK 25m per year for SMEs (large companies: NOK 50m). This credit directly reduces the 22% selskapsskatt liability — and if the credit exceeds the tax liability, it is refunded in cash. This makes SkatteFUNN an extremely valuable tool for technology and product companies.

When tax is paid

AS companies pay advance corporate tax (forhåndsskatt) in two instalments — 15 February and 15 April of the following year — based on an estimate. Final assessment comes in October/November; balance due within 3 weeks of assessment.