Norway Accounting and Tax Services
Many international clients engage Tetra Consultants for Norway accounting and tax services after Norway company registration. Tetra Consultants will timely complete your firm’s financial statements, corporate tax returns and manage auditors on your behalf and without the need to travel.
By outsourcing accounting and tax obligations to Tetra Consultants, you can reduce overhead costs while being ensured of timely reporting and filings. Our accounting team will provide you with an explanation of all the required deadlines and expectations before the start of the engagement.
Thereafter, our team will prepare the required fillings in advance to ensure we meet all stipulated deadlines. Tetra Consultants will send you a weekly or bi-weekly update, ensuring that you are aware of upcoming deadlines.
Annual reporting requirements
- In accordance with Norwegian Tax Administration, it is mandatory for corporate entities partaking in businesses within the jurisdiction to file annual tax returns electronically by the last business day of May following the fiscal year ending on 31st However, businesses can request for an extension until the end of June, subject to approval.
- Corporations who failed to meet the stipulated deadline will be subjected to a late filing penalty on the tax due. Taxpayers who were unable to resolve outstanding tax payments in due time will be subjected to penalties as well depending on the degree of non-compliance. Taxpayers in Norway are subjected to penalties amounting to 20% to 40% of taxable annual income for untimely filing of federal tax returns.
- Corporate entities in Norway are required to submit advance tax payments twice a year on 15th February and 15th April in the year following the tax year. The remaining tax payable is paid usually in November.
Norway Corporate Tax Rates
- Resident companies in Norway are subjected to a Corporate Income Tax rate of 22% on annual taxable income under Norway’s Tax Regulations. However, institutions under the financial business sector may be subjected to an increased Corporate Income Tax rate of 25%.
Norway Audit Requirements
- In line with Norway’s Tax obligations, a statutory audit by a certified auditor is necessary for corporate entities with the following characteristics:
- Annual operating revenue exceeds NOK 6million, and
- Company’s balance sheet adds up to more than NOK 23million, and
- On average, the firm has more than 10 employees.
- Corporate entities that do not possess the above-mentioned traits are allowed to not have their annual accounts audited. As such, the Norwegian government grants an opportunity to opt-out of any auditing obligations for these business entities.
- If you would like to opt-out of your annual auditing requirements and obligations, Tetra Consultants will assist you in the preparation of previous annual accounts which will be used as part of the assessment by the Norwegian Tax Administration.
Norway Value Added Tax (VAT)
- In accordance with Norway’s tax regulations, it is mandatory for corporate entities with an annual turnover exceeding NOK 50,000 to register for Value Added Tax purposes.
- Norway’s Value Added Tax has a standard rate of 25%. Additionally, a reduced rate of 15% is applicable for business activities carried out in the food and drinks sector and a rate of 12% applies to passenger transport and hotel services. In certain cases, specific business operations are zero-rated and exempted from Value Added Tax obligations.
Norway Withholding Tax
- According to Norway Tax regulations, Norwegian registered business entities are obligated to withhold a percentage of certain payments made to non-residents. The withholding tax compliance falls under the responsibility of the Norwegian business entity.
- Generally, dividends paid by a Norwegian corporation to a non-resident shareholder are subjected to a 25% withholding tax rate, unless otherwise specified under tax treaties. The withholding tax does not apply to dividends paid to resident shareholders.
- Royalties paid by a Norwegian corporation to a non-resident are not subjected to a withholding tax rate.
- Withholding taxes are not levied on interest paid by a resident Norwegian company to a non-resident.
- Withholding taxes are not levied on technical service fees by a resident Norwegian company to a non-resident.
Contact us now to find out more about Tetra Consultants’ Norway accounting and tax services. Our team of experts will revert within the next 24 hours.