On 7 October 2026, the Støre government unveiled its comprehensive tax and value-added tax package for the 2027 fiscal year, embedded within the annual state budget proposition (Prop. 1 S). The proposal introduces targeted adjustments to personal income thresholds, corporate interest deduction limits, and VAT registration thresholds, while maintaining the headline 22% corporate tax rate. Notably, the budget proposes a temporary increase in the VAT registration threshold from NOK 50,000 to NOK 100,000 in annual turnover to reduce administrative burdens on micro-enterprises. Simultaneously, the government signals a tightening of international tax rules, aligning with OECD Pillar Two implementation timelines.
Key Takeaways
- Personal Tax Relief and Bracket Adjustments: The basic allowance is increased by NOK 3,500, and the step 1 bracket threshold is raised to NOK 208,050, providing moderate relief for low- and middle-income earners while financing the changes through reduced deductions for high-income groups.
- Corporate Interest Limitation Tightened: The earnings stripping rule (EBITDA-based) sees the safe harbor ratio reduced from 25% to 20%, and the de minimis threshold lowered from NOK 25 million to NOK 15 million, expanding the scope of affected multinational groups.
- VAT Threshold and Digital Services: The raised VAT registration threshold exempts an estimated 12,000 small businesses from filing obligations, while new rules for digital platform operators extend VAT collection responsibilities to foreign providers of electronic services to Norwegian consumers.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement