Norway's Ministry of Finance has launched a public consultation on proposed amendments to its Supplementary Tax Act, seeking to align domestic rules with the OECD/G20 Inclusive Framework's latest Pillar Two guidance. 

RF Report

The Norwegian Ministry of Finance has launched a public consultation on proposed amendments to the Supplementary Tax Act, introduced in January 2024 to implement the Pillar Two global minimum tax rules.

The Act of 12 January 2024 implements internationally agreed rules on a global minimum tax in Norway. The rules are intended to ensure that large corporations pay at least 15% tax regardless of where they operate. The purpose is to counteract profit shifting and harmful tax competition between countries.

The OECD/G20 Inclusive Framework’s global minimum tax system, built on 2021 model rules and subsequent guidance, is now the subject of a consultation proposal. The proposal centres on a 5 January 2026 administrative guidance package (the “Side-by-Side Package”), which introduces safe harbour rules — covering recognition of other minimum tax regimes, certain tax incentives, and simplified top-up tax calculations.

Other key features include a Simplified Effective Tax Rate (ETR) test and an extension of the temporary Country-by-Country Reporting relief through 2027.  The proposal also includes a new separate chapter in the Supplementary Tax Act with provisions on Safe Harbour rules.

The proposed changes aim to align Norway’s supplementary tax rules with the OECD model regulations and their implementation across other jurisdictions, with effect from the 2026 income year.

The consultation is set to conclude on 3 August 2026.

The key proposals are explained below:

Introduction of new safe harbour rules

The proposals introduce four new permanent Safe Harbour mechanisms intended to simplify calculations and reporting:

  • Simplified ETR Safe Harbour: Allows a group to set its supplementary tax to zero for a jurisdiction if a simplified calculation shows an effective tax rate (ETR) of at least 15%.
  • Substance-based Tax Incentive Safe Harbour: Protects certain “qualified tax incentives” by allowing groups to set supplementary tax to zero to the extent it was caused by these incentives, provided they stay within a calculated “substance ceiling”.
  • Side-by-Side Safe Harbour: Applies when the ultimate parent entity (UPE) is in a jurisdiction with a “qualified side-by-side regime” (such as the US). It sets IIR and UTPR supplementary tax to zero for all units in the group.
  • UPE Safe Harbour: Provides relief from the Undertaxed Profits Rule (UTPR) for units located in the parent company’s jurisdiction, provided that jurisdiction has a “qualified UPE regime”.

Extensions and adjustments to transitional rules

  • CbCR safe harbour extension: The transitional Country-by-Country Reporting (CbCR) Safe Harbour is extended by one year, making it applicable for fiscal years beginning on or before 31 December 2027.
  • 53-week fiscal year fix: The transitional UTPR Safe Harbour is adjusted to accommodate groups with fiscal years ending on a specific weekday (e.g., the last Sunday of the year). The deadline is extended from 31 December 2026 to 3 January 2027, to ensure these groups remain covered.

Structural and technical changes

The Ministry proposes moving the Safe Harbour rules from the regulations into a newly established Chapter 8 of the Supplementary Tax Act. This is intended to provide better legal grounding and make the rules more accessible to users.

The proposals include minor updates to terminology, such as replacing “physical property” (fysisk eiendom) with “physical assets” (fysiske eiendeler) to ensure full harmony with the international model rules.

Implementation and timing

Most of the proposed changes are intended to take effect immediately, applying to the 2026 income year (fiscal years starting after 31 December 2025). The specific adjustment for 53-week fiscal years is proposed to take effect for the 2025 income year.