On May 12, 2020, the Norwegian government submitted a proposal for a revised budget for 2020. The revised budget includes increased flexibility for taxpayers to request an extension of tax obligations due to difficulties related to the COVID 19 pandemic. Reduction of the late payment interest rate to 6% and the employer’s social security contributions by 4% for the period from May to June 2020.
The Ministry of Finance has also proposed to increase the first-year depreciation of assets that fall in asset group D (such as machinery, passenger cars, movable furnishings) by 10 percentage points, from 20% to 30%, provided that the assets are acquired from third parties from the time the proposal enters into force and until the end of 2020.
