Latest Tax updates from Norway:
- The Parliament has suggested a temporarily reduction of the Employer´s national insurance contributions (ENIC) with 4% (the prevailing rates vary from 14,1% to 0%) for the 2.nd term (March-April), in May. The Government will decide upon this in May, together with the Revised National Budget of 2020.
- The deadline for payment of ENIC for 2nd term (Feb-March) is deferred from 15. May to 15. August 2020. The Government has announced that the deadline for payment of 3rd term might also be deferred. The deadline for reporting ENIC is not deferred, only the payment.
- The obligatory advance payment of corporate income tax (CIT) and tax on dividend or wealth for 2nd term (Jan-Feb) is deferred from 15. April to 1. September 2020. For businesses other than companies, a deferred payment of the withholding tax has been decided for the 1st term from 15th March to 1. May 2020 and for the 2. term from 15. May to 15 .July 2020.
- The payment of VAT for 1st term (Jan-Feb) is deferred from 14. April to 10. June 2020, which coincide with the ordinary deadline for payment on 2.nd VAT term (March-April). The VAT reporting of 1st VAT term still has to be done within the prevailing deadline 14. April this year.
- The use of Compulsory fines related to late tax reporting, is in general temporarily stopped.
- The Parliament has decided a halving of the VAT rate that applies to passenger transport, hotel, leisure and culture sector, from 12% to 6%. It is decided to take effect from 1. April to 31. October this year. The rate applies only to deliveries that take place within this period, i.e. the time of the flight, the date of a hotel stay, a concert etc. The date of the invoice does not decide the rate.
- It is decided that companies may claim tax deduction for losses in 2020 up to 30 MNOK against profits for 2019 and/or 2018.
- The payment of wealth tax is decided deferred for owners of companies with a deficit in 2020.
- An exemption for Air passenger tax is also decided upon from of 1. January 2020 until 31. October 2020.
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