The new government of Norway proposes the 2015 fiscal budget on October 8, 2014 which focuses on targeted tax cuts through broadening of tax base.
The levy of wealth tax on individual tax payers was reduced from 1.1% to 1% in 2014. The budget for 2015 further proposes to reduce the rate of wealth tax to 0.75%. The expatriates working in Norway for a short time shall be imposed this tax if the tax treaty of their home country with Norway does not give protection. The budget also proposes to reduce valuation discount for commercial property from 40% to 20% of market value.
The basic allowance per individual has been proposed to increase from 1 MNOK to 1.2 MNOK. The upper limit of the basic allowance for social security benefit and wage income will be increased by NOK1,000 on top of expected wage increases. The rate of the basic allowance will be increased from 27 percent to 29 percent. The proposed budget will reduce the employees’ social security contribution and the threshold of surtax will increase.
