The Budget for 2014 was presented to parliament on 14 October 2013.
Details of the Budget in respect of direct taxation, which will generally apply as from 1 January 2014, if adopted, are summarized below.
Corporate taxation
The proposals are:
- The corporate income tax rate will decrease to 27% (currently 28%);
- The petroleum revenue tax on oil companies and hydro-power plants will increase by one percentage point in order to keep the current level of tax revenue, despite the reduction of the general corporate income tax rate; and
- The scope for deductions of interest payments on debt to associated companies is limited to prevent multinational companies from shifting profits abroad and reducing their taxes payable in Norway.
