CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Norway's Budget Cuts Income Tax

Norway's Budget Cuts Income Tax

by Ulrika Lomas,, Brussels

16 October 2017

The Norwegian Government has said the Budget for 2018 meets its election commitment to encourage higher investment, job creation, and economic growth, including through an income tax cut.

Announced on October 11, the Budget builds on recent reductions in income tax by cutting tax on ordinary income for individuals and companies from 24 percent to 23 percent.

Other measures include changes to property, environmental, and wealth taxes, and an increase in the lower rate of value-added tax.

The property tax changes include new valuation rules for "works and installations" for property tax purposes so that machinery and equipment will no longer be subject to property tax.

Part of the coalition agreement, the Budget includes a proposal to increase the valuation discount for shares and operating assets for net wealth tax purposes from 10 to 20 percent in 2018.

The Government is proposing a number of changes in the area of environmental taxation. It will follow up the recommendations of the Green Tax Commission by improving carbon pricing, and increase the efficiency of environmental taxes by abolishing exemptions and low rates.

The Government said that under the proposed changes electric cars "will still be accorded significant advantages in comparison with cars running on fossil fuels." In addition, the Government proposes that electric cars be exempted from re-registration tax and the incoming traffic insurance tax, which replaces the annual motor vehicle tax from 2018.

It is also proposed in the Budget that the lower rate of VAT be increased from 10 percent to 12 percent.

The Conservative Party was returned to power in an election on September 12, 2017, although the party lost seats in the parliamentary elections, and will govern as a coalition with the right-wing Progress Party and other center-right parties.

TAGS: individuals | environment | tax | investment | value added tax (VAT) | property tax | vehicle tax | insurance | insurance tax | Norway | environmental tax | Other | Tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »