Withholding Taxes in Norway

All investors from the European Economic Area (EEA) who conduct as well business activities in Norway are exempt from the payment of the withholding taxes for dividends in this country. Royalties and interest are generally not taxed either, except for a 15% withholding tax (since 2021) on payments to related companies in low-tax jurisdictions. The standard withholding tax rate for dividents, applied to the countries from outside the European Area is of 25%. However there are specific withholding tax regulations in Norway for investors who come from states which have signed tax treaties with Norway. Different rates apply on these cases, depending on the trade relationship existing between a foreign state and Norway. Our law firm in Norway is a reliable advisor on matters of taxation in this country and it can help investors to comply with the tax legislation in the Norwegian state. 

Main regulations concerning withholding taxes for Norway

According to the Norwegian law, the withholding taxes are applied to companies as well as natural persons. Norway generally doesn’t charge withholding taxes for interest or royalties, except 15% on payments to related companies in low-tax jurisdictions (since 2021). Only the dividends received from Norwegian companies by foreign investors are taxed at the standard rate of 25 %. The due withholding tax amount for dividends is calculated after the distributing company submits a withholding tax return. In case you are entitled to a reduced rate, you can make an application to the Norwegian Tax Administration (Skatteetaten), which offers refunds for the excess amount charged from your revenue.

The main reasons for which a foreign investor might apply for a refund are the provisions of tax treaties signed between their country of residence and Norway. Moreover, according to the Norwegian Tax Act, shareholders from the EEA can benefit from the exemption granted by Norway for this economic area. Our Norwegian lawyers can help you check which regulation applies in your particular case and to determine whether you are entitled to get a refund for the withholding tax.

More aspects related to withholding taxes in Norway

The domain of application of the withholding taxes is not limited to companies. Exemption from the taxation is granted as well for:

• stock investment funds;

• foundations;

• associations;

• estates in bankruptcy, 

• co-operative societies;

• mutual insurance companies;

• Savings Banks etc. 

Foreign entities as those enumerated so far need to be comparable to a Norwegian type of entity in order to be able to claim the exemption. One of our attorneys in Norway can give you more details on the requirements that need to be respected in order to benefit from the exemption.

Moreover, under the Double Taxation Treaties signed between Norway and other countries, investors might obtain reduced rates for the withholding taxes. Depending on the place of origin and the provisions of the conventions, the withholding tax in your case might apply at one of the reduced rates of 5%, 10%, 15% or 20%.

Don’t hesitate to contact our Norwegian law firm in order to find out all the details concerning the withholding tax regulations in this country and how they apply to your particular situation.