Transcript Tax relief for onshore business activities

NEWSLETTER
TAX
May 2013
Tax relief for onshore
business activities
The Norwegian Government announces tax measures to stimulate onshore business
activities. The proposals are listed below and are expected to enter into force from the
income year 2014 (if not otherwise stated below).

Lowering the corporate tax rate
The corporate tax rate will be lowered from 28 per cent to 27 per cent.
The Government proposes corresponding tax rate reductions for business income earned by
self-employed individuals and individuals participating in partnerships.

First year depreciation for machinery
The Government will introduce a first year additional depreciation allowance of 10 percent of
investments costs for machinery etc, i.e. the deprecation rate for such assets will be
increased from 20 per cent to 30 per cent the first year for tax purposes.

Research & Development scheme
The tax credit scheme for Research & Development will be strengthened through an
increase of MNOK 100.

Interest deduction limitations
New legislation limiting tax deductions for interest paid on loan agreements between related
companies. This proposal is outlined in our newsletter dated 18 April 2013.

Increase in wealth tax
The taxable value of non-owner occupied houses and business property for net wealth tax
purposes will be increased from 50 to 60 per cent of estimated market value.

The petroleum tax system
The Government proposes to reduce the uplift in the petroleum tax system from 7.5 per
cent to 5.5 per cent (Norwegian: ”friinntekt”). The overall uplift is thereby reduced from 30
per cent to 22 per cent. These changes are proposed to enter into force from 5 may 2013.
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uriktig. © 2013 Advokatfirmaet Thommessen AS
Thommessen nyhetsbrev – side 2

Tax rates for petroleum extraction and hydropower production
The Government proposes to increase the special tax rate on petroleum extraction and the
special tax on economic rent from hydropower plants with 1 percentage point, i.e. from
50 per cent to 51 per cent on petroleum extraction, and from 30 per cent to 31 per cent on
hydropower production.
CONTACTS
Christian Bruusgaard (Partner) ................................... [email protected] ......................T +47 23 11 12 05........................ M +47 91 56 47 55
Sverre E. Koch (Partner)............................................. [email protected] ......................T +47 23 11 12 16........................ M +47 90 14 15 62
Ståle R Kristiansen (Partner) ...................................... [email protected] ......................T +47 23 11 13 82........................ M +47 99 58 18 70
Finn Backer-Grøndahl (Partner) ................................. [email protected] .......................T +47 23 11 11 03........................ M +47 93 41 98 04
Henning Naas (Partner) .............................................. [email protected] ......................T +47 23 11 12 23........................ M +47 91 62 75 65
Truls Leikvang (Partner)............................................. [email protected] ........................T +47 23 11 12 20........................ M +47 90 77 02 40
Ola Mæle (Partner) ..................................................... [email protected] ....................T +47 55 30 61 44........................ M +47 97 16 49 99
Mons Alfred Paulsen (Partner) ................................... [email protected] .....................T +47 55 30 61 42........................ M +47 48 01 21 42