Norway Corporate Tax - Guide for International Expansion

Are you considering expanding your business to Norway? Understanding the country's corporate tax system is essential for making informed decisions about your international operations.

Norway offers a stable business environment with clear tax regulations, but navigating the specifics requires careful planning. From registration requirements to payment procedures, knowing your obligations upfront can save you time and money down the line. Whether you're exploring new markets or finalising your expansion plans, having the right financial tools makes all the difference. Wise Business can help streamline your international payments and currency management, making it easier to handle everything from incorporation fees to ongoing tax obligations in Norwegian kroner.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Norway corporate tax rate in 2025

The standard corporate income tax rate in Norway is 22% for the 2025 tax year.¹ This rate applies to all companies resident in Norway for tax purposes, making it slightly below the OECD average of around 23%.²

Norwegian companies are subject to corporate tax on their worldwide income, whilst non-resident companies are only taxed on Norwegian-source income. A company is considered tax resident in Norway if it is incorporated under Norwegian law or if its place of effective management is in Norway.³

Norway also operates a petroleum tax regime with significantly higher rates. Companies engaged in petroleum activities on the Norwegian continental shelf face an additional special petroleum tax of 56%, bringing the total effective tax rate to 78% (22% ordinary corporate tax plus 56% petroleum tax). This higher rate reflects the substantial profits typically generated from Norway's oil and gas resources.⁴

The Norwegian tax system includes various deductions and allowances that can reduce the effective tax burden, including depreciation allowances for business assets and deductions for business expenses incurred in generating taxable income.⁵

Read more about the corporate tax in United States

How to pay corporate tax in Norway

Companies in Norway must register with the Norwegian Tax Administration (Skatteetaten) and use their online portal, Altinn, for most tax-related activities. Corporate tax payments are made in Norwegian kroner (NOK), so foreign companies need to convert their functional currency accordingly.

The Norwegian tax year follows the calendar year, running from 1 January to 31 December. Companies must submit their corporate tax return by 31 May of the year following the income year. For example, the 2024 tax return must be filed by 31 May 2025.⁶

In Norway, most companies pay corporate tax through an advance payment system. These payments are made in two equal instalments, due on February 15th and April 15th in the year following the income year. Petroleum companies, however, follow a different schedule and pay in six instalments. The Norwegian Tax Administration electronically sends out advance tax notices to companies in January.⁷

The deadline for a company's tax return is May 31st. Any unpaid tax from the previous year is typically due in September or October after the tax assessment. To avoid interest on the remaining balance, companies can make an additional payment by May 31st. If a company has overpaid, it will receive a refund.⁸

Late payment of corporate tax incurs interest charges. The interest rate is set by the Ministry of Finance and is updated every six months. As of January 1, 2025, the interest rate on overdue payments is 12.5% annually. Additionally, companies that fail to submit their tax return on time may be subject to a daily enforcement fine.⁹

Let's consider a practical example: if your Norwegian company has an annual turnover of NOK 15 million with a profit margin of 10%, your taxable profit would be NOK 1.5 million. At Norway's corporate tax rate of 22%, your annual tax liability would be:

NOK 1.5 million × 22% = NOK 330,000

When expanding your business to Norway, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to manage international finances. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in Norway

Your business can stay compliant with Norwegian tax laws by following the steps below:

• Register early: After incorporation, register with the Norwegian Tax Administration to obtain a tax identification number and ensure your company can operate legally.
• Corporate tax computation: Accurate calculation of profits and deductions is essential to avoid errors and penalties.
• Corporate tax submission: Annual tax returns must be submitted electronically by the end of May in the year following the income year.
• Corporate tax extension: If companies need additional time to file their tax returns, they can apply for an extension.
• Avoid penalties: Missing deadlines may lead to a late corporate tax filing penalty, which accrues daily until compliance is achieved.
• Other obligations: Employers must deduct and remit payroll taxes, VAT, and social security contributions on time.

International Expansion to Norway

If you want to take your business beyond its current location, you should consider Norway. Its economic stability, a skilled workforce, and access to a large regional market make it one of the prime corporate destinations. Foreign direct investment in this country reached $140 billion by the end of 2022, and more than 8,000 foreign-owned companies already operate there. Ranked 9th in the World Bank’s Doing Business Report, Norway is known for its transparent regulations and straightforward procedures. It also scored 4th globally in Transparency International’s Corruption Perceptions Index, underlining its credibility as a safe place to invest.¹⁰

Norway’s economy is both wealthy and resilient. Its GDP per capita exceeds USD 100,000, incomes are evenly distributed, and consumer demand is visibly strong. As Europe’s largest energy provider and the world’s fourth-largest exporter of natural gas, Norway benefits from abundant resources and global trade links. Hydropower and wind energy supply nearly all of the country’s electricity, giving businesses access to affordable and renewable power.¹¹ On top of this, Norway is the 3rd most resilient economy worldwide, meaning companies face low risks from sudden market shocks.¹²

Talent is another strength. Norwegian workers are highly educated, trustworthy, and problem solvers. The country consistently ranks in the top 10 for global talent competitiveness and presents an excellent quality of life for its people.¹³ Expats can also start living comfortably in Norway once they are familiar with its work and social culture.

Ranked 2nd on the Human Development Index, it provides high living standards, reliable healthcare, and a clean environment.¹⁴ These factors help attract and retain talent.

Moreover, the country’s infrastructure is modern and efficient, with 55 airports and over 3,000 ports. Its membership in the Schengen Area also ensures free movement and access to a large European market.¹⁵ These advantages, combined with an AAA credit rating, make the country a secure and strategic choice for expansion.

You can start your business in Norway by following these steps:¹⁶

1. Conduct market research to understand the local environment.
2. Prepare a business plan suited to Norwegian regulations and consumers.
3. Choose a legal structure.
4. Select a business name and location.
5. Foreign investors should apply for a D-Number (local ID requirement).
6. Register with the Business Registry.
7. Open a corporate bank account.

Note: Understanding regulations, the Norway corporate tax rate, and recent corporate tax reforms will be an essential part of planning for success.

Read more about the corporate tax in Nevada

Incorporation of Business in Norway

To set up a company in Norway, businesses must register with the Register of Business Enterprises.¹⁷ The process can be completed online through the coordinated registration notification on Altinn, the government’s digital portal. The main requirements include:¹⁸

• Submitting minutes from the founding meeting, outlining the company’s headquarters, board members, and share allocation.
• A declaration from a bank, auditor, lawyer, or accountant confirms that the share capital has been paid.
• Preparing articles of association (vedtekter) that regulate internal operations and shareholder rights.
• Maintaining a shareholder register (aksjeeierbok) must always reflect accurate ownership information.

Business Entities in Norway

Norway recognises two primary forms of limited liability companies: the private limited company (aksjeselskap, AS) and the public limited company (allmennaksjeselskap, ASA). Each is regulated by distinct yet closely related legislation, with the Norwegian Private Limited Liability Companies Act of 1997¹⁹ applying to AS and the Norwegian Public Limited Companies Act of 1997 applying to ASA.

Private Limited Company (Aksjeselskap – AS)

• The most common entity for small and medium-sized businesses, and the structure often chosen by multinationals.
• It requires a minimum share capital of 30,000 NOK (approx. €3,500), which is fully paid up.
• At least one shareholder is required, and a board of directors must be appointed.
• At least 50% of board members must reside in Norway or another EU/EEA country.

Public Limited Company (Allmennaksjeselskap – ASA)

• Suitable for large companies, particularly those planning to list on a stock exchange.
• It requires a minimum share capital of 1 million NOK (approx. €112,000), which is fully paid up.
• At least one shareholder is required, along with a board of directors.
• At least 50% of board members must reside in Norway or an EU/EEA country.
• Directors must apply for a Norwegian D-Number (personal identification number).

Norway’s incorporation process is designed to be transparent and efficient, reflecting its reputation as one of the safest countries to do business. After registration, companies can focus on operations, corporate tax compliance, and long-term growth. Although Norway is not among the countries with the lowest corporate tax, it offers clear procedures to file corporate tax returns online, manage payments, and apply effective corporate tax planning strategies to encourage sustainable business expansion.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires a strategic approach that balances compliance with cost efficiency. Here are key practices that successful international businesses follow.

Maintain robust compliance procedures in every jurisdiction where you operate. This means registering with local tax authorities, understanding filing deadlines, and keeping accurate records that meet local requirements. Each country has unique rules about what constitutes taxable income, allowable deductions, and reporting standards.

Take advantage of double taxation treaties (DTTs) to avoid paying tax twice on the same income. Norway has comprehensive tax treaties with over 80 countries, which can significantly reduce withholding taxes on dividends, royalties, and interest payments. Understanding these treaties helps optimise your overall tax position when moving profits between jurisdictions.

Implement transfer pricing policies that reflect genuine commercial arrangements between related entities. Tax authorities increasingly scrutinise intercompany transactions, so maintaining proper documentation and ensuring arm's length pricing is essential for avoiding disputes and penalties.

Consider the OECD's Base Erosion and Profit Shifting (BEPS) initiatives and Pillar Two minimum tax rules when structuring international operations. These frameworks aim to ensure multinational companies pay their fair share of tax, and compliance is becoming mandatory in many jurisdictions.

Keep detailed financial records that can withstand scrutiny from multiple tax authorities. Cloud-based accounting systems that integrate with your banking and payment platforms can simplify record-keeping whilst ensuring you have the documentation needed for tax compliance and potential audits.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Norway efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details

(only with Wise Business Advanced)

for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Norway

Who is liable for corporate tax in Norway?

All companies incorporated in Norway are liable for corporate tax on their worldwide income. Foreign companies are subject to Norwegian corporate tax only on income derived from Norwegian sources, such as business activities conducted through a permanent establishment in Norway or certain types of Norwegian-source investment income.

Are there any tax incentives for businesses in Norway?

Norway offers several tax incentives, particularly for research and development activities. The SkatteFUNN scheme provides tax deductions for R&D expenses, allowing companies to deduct up to 20% of qualifying R&D costs from their tax liability. There are also accelerated depreciation allowances for certain business assets and special provisions for companies in the petroleum sector.

What is the tax treatment of dividends in Norway?

Dividends received by Norwegian companies from other Norwegian companies are generally exempt from corporate tax under the participation exemption rules. Dividends from foreign subsidiaries may also qualify for exemption if certain conditions are met. However, dividends paid by Norwegian companies to shareholders are subject to withholding tax, though rates may be reduced under applicable tax treaties.

What is the process for registering for corporate tax in Norway?

Companies must register with the Norwegian Tax Administration (Skatteetaten) as part of the general business registration process. This is typically done through the Brønnøysund Register Centre, which coordinates registration with various government agencies. Once registered, companies receive a Norwegian organisation number and are automatically enrolled in the corporate tax system.

What are the common pitfalls to avoid regarding corporate tax in Norway?

Common mistakes include failing to register for advance tax payments, which can result in large lump-sum payments and cash flow issues. Many companies also underestimate the complexity of transfer pricing rules when dealing with related entities. Additionally, foreign companies sometimes fail to recognise when their activities create a permanent establishment in Norway, leading to unexpected tax liabilities. Finally, not maintaining proper documentation for business expenses can result in disallowed deductions during tax audits.

Sources used in this article:

1. Tax Foundation: Corporate Income Tax Rates in Europe
2. Tax Foundation: Corporate Tax Rates by Country 2024
3. Chambers Practice Guides: Corporate Tax 2025 - Norway
4. Norsk Petroleum: Petroleum Tax
5. Norwegian Tax Administration: Deductions for Businesses
6. Norwegian Tax Administration: Tax Return for Companies
7. Norwegian Tax Administration: Advance Tax for Companies
8. PwC Tax Summaries: Norway Tax Administration
9. Norwegian Tax Administration: Interest on Overdue Payments
10. U.S. International Trade Administration: Norway Investment Climate
11. U.S. International Trade Administration: Norway Market Overview
12. FM Global: Supply Chain Resilience Index
13. IMD: Talent Ranking - Norway 2024
14. UNDP: Human Development Index Data Center
15. Business Norway: Why Invest in Norway
16. Nordic HQ: Business in Norway
17. Brønnøysund Register Centre: Register a Limited Company
18. Starte-AS.no: How to Incorporate in Norway
19. Lawyer Norway: Understanding Business Entities

Sources last checked 12/09/2025

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