Tax
Worldwide income, a wealth tax and 25% VAT
Residents are taxed on worldwide income through a flat base rate plus a progressive bracket tax, administered by the Tax Administration. Norway also levies a net wealth tax, and standard VAT is 25%.
Key rules
- Income is taxed at a flat base rate plus a progressive bracket tax (trinnskatt).
- A net wealth tax (formuesskatt) applies above a threshold.
- Standard VAT is 25% (15% on food, 12% on some services).
Governing law
- Taxation Act (Skatteloven)
- VAT Act (Merverdiavgiftsloven)
Penalties and consequences
- Additional tax and interest for non-compliance; criminal liability for evasion
In practice
The wealth tax on unrealised business assets is politically contentious and has prompted some high-net-worth residents to relocate.