On 12 October 2021, the Government of Norway has presented the National Budget for 2022 in the Parliament includes the following tax proposals.
- Introduction of tax incentives for investments in small start-up companies.
- Reduced Bracket Tax and a new job allowance for young people.
- The tax rules for housing companies which increase the limit on the number of housing units that can be let under a rent-to-own model are being revised.
- Introduction of a deduction for group contributions given to foreign subsidiaries by their parent companies residing in Norway. One of the many applicable requirements is that the subsidiary must be engaged in real economic activity in another EEA State. The ruling was based on the EFTA Court’s advisory opinion of 13 September 2017. The Ministry proposes to enact the rule, to ensure that the group contribution rules do not conflict with EEA law.
- Increase of the tax-free discount of 25% to 30% on shares granted to employees. As employment advantages are taxable as salary, the upper limit of the discount would remain NOK 7,500 per year.
- Increase of the minimum deduction in salary/social security from 46% to 48%.
- CO2 Tax levied on natural gas and LPG within the greenhouse industry is being introduced at 20 per cent of the standard tax rate. The aim is to introduce the full tax from 2026.
