On 7 October 2020, the Norwegian Government presented its national budget for 2021, including several changes to the tax rules in Norway.
One issue relevant for multinationals with activities in Norway is the proposed introduction of withholding tax on interest, royalties, and certain lease payments. MSI's Norwegian law member Magnus Legal provides an update.
As per today Norway has no domestic right in the tax law to levy such withholding tax. The proposal is that this tax at a rate of 15% on gross payment will be introduces with effect as from July 1, 2021.
However, the tax will only be triggered if the payment is made to a related group company resident in a low tax jurisdiction.