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Norway announces minor tax change

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Report summary

The Norwegian Government has announced that Corporation Tax will be reduced by 2% to 25%. The marginal tax rate for petroleum activities will remain at 78% as the Special Petroleum Tax rate will be increased by 2% to 53%. The change is part of wider tax reforms to boost Norway's competitiveness in non oil sectors. Further tax reforms are proposed in a white paper published alongside the budget with Corporation Tax to be reduced to 22% by 2018. In order to avoid a reduction in state revenue further adjustments will be required to the Special Petroleum Tax and could require a review of the capital uplift rate.

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