Law and regulation of Covid-19 tax relief in Norway

Information provided by the IBA Taxes Committee members.

Value Added Tax

Reduce the reduced VAT rate to 8% (currently, 12%) with effect from 1 April 2020 for the following:

  • the supply of passenger transport and the procurement of such services;
  • public broadcasting companies;
  • admission to cinemas, sports events, amusement parks and museums; and
  • accommodation in hotels, the letting of cabins and holiday apartments by hotels and camping businesses and the procurement of hotel accommodation.

Corporate Income Tax

  • Individuals who own a company engaged in active business are subject to net worth tax on their business assets. If the company is incurring a loss in 2020, the individual may defer the payment of the tax due in 2021 by one year. This is expected to increase the liquidity of businesses as owners usually finance the payment of tax by paying dividends.

Social Security Contributions or Payroll Tax

  • N/A

Other relief measures

  • Loss-making companies may carry back losses and set them off against profits of previous tax years. This measure is limited to limited liability companies that incur a loss in 2020 and have profits from 2018 or 2019.

Additional comments

  • N/A