On 7 October 2026, the Norwegian Government presented the National Budget 2027 (Statsbudsjett 2027) to the Storting, outlining significant tax policy shifts aimed at strengthening public finances, accelerating the green transition, and aligning with OECD Pillar Two global minimum tax rules. The proposal introduces adjustments to corporate income tax, resource rent taxation for hydropower and wind power, and enhanced VAT compliance measures for digital services. EY Norway’s tax practice has released a comprehensive analysis highlighting the implications for domestic and multinational enterprises operating in the Nordic region.
Key Takeaways
- Corporate Tax & Pillar Two Alignment: The Budget proposes amendments to the Norwegian Corporate Tax Act to fully implement the OECD/G20 Inclusive Framework’s Pillar Two Global Anti-Base Erosion (GloBE) Rules, effective for fiscal years starting on or after 31 December 2026. This includes a domestic top-up tax ensuring a 15% minimum effective tax rate for large multinational groups.
- Resource Rent Tax Adjustments: Significant increases to resource rent tax rates for hydropower (from 45% to 55%) and onshore wind power (new 35% rate) are proposed, retroactive to 1 January 2026, impacting energy sector valuation models and investment decisions.
- VAT & Digital Compliance: New VAT reporting requirements for non-resident digital service providers and platform operators take effect 1 January 2027, mandating real-time transaction reporting via the Norwegian Tax Administration’s digital portal.
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