
Businessmen who want to
open a company in Norway that is registered as a
limited liability company will need to comply with specific tax requirements. Under the
Norwegian legislation, the
limited liability company (LLC) is seen as a separate legal entity than its founders and thus, this business form will be
taxed separately.
As a
Norwegian LLC, the
company itself will be
liable for a set of corporate taxes, including the
value added tax (VAT). Any
LLC registered in Norway is liable for the
payment of a tax on profits, which is currently imposed at a rate of 23%.
Our team of specialists in company formation in Norway can advise on all the
taxes that are applicable when
starting a Norwegian LLC.
What are the main corporate taxes for a Norwegian LLC?
Local and foreign LLCs operating in Norway are
taxed following the
same tax system, but several differences may arise. For example, a
Norwegian based LLC will be
liable for the tax on profits (known as the
Advance Tax) on its worldwide income, while in the case of
LLC registered elsewhere, which also operates on the
Norwegian market, the
tax on profits will only be applicable to the income obtained in this country. Some of the main important aspects concerning the
taxation of a LLC are presented below:
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• the standard corporate income tax for LLCs is imposed at a rate of 23%, which must be paid in two equal installments;
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• in the case of Norwegian LLCs that operate in the financial sector, the tax on profits is imposed at a rate of 25%;
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• provided that a LLC operates in the petroleum sector in Norway, the tax will generally be imposed at the standard rate, but the tax can increase to 55% for specific activities developed in the field;
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• the capital gains tax is applicable at the standard rate of 23%, but an exemption in this sense is granted in certain conditions;
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• the VAT is imposed at the standard rate of 25%, but LLCs can be imposed with lower VAT rates, in the situation in which their activities qualify for lower thresholds.
Depending on how the procedure is going, the processing times for VAT registration in Norway can range from one day to several weeks. If you need support in obtaining your registration number as soon as possible, contact us. Our company incorporation specialists will help you draft and file the necessary documents.
What are other taxes available for companies in Norway?
Norwegian companies are also liable to other
types of taxes, such as the
tonnage tax,
customs and excise duty, the
stamp duty (imposed during the procedure of ownership transfer) and the
real estate tax.
Our team of consultants in company formation in Norway can offer more information on the
tax rates available for these
types of taxes.
Since any
company usually has to
hire employees, the
LLC will also be liable to the
payment of the social contributions for its employees. The
tax is not fixed, as it varies by region, but certain
Norwegian regions can provide an exemption on this
tax; businessmen are invited to
contact our team of specialists in company registration in Norway for more information on the
country’s tax system.