Norway: committee of experts appointed to evaluate corporate income tax systemMarch 22, 2013
On 15 March 2013, the Ministry of Finance announced that the Government has appointed a committee of experts to evaluate the Norwegian corporate tax system (the committee). Details of this development are summarized as follows:
- In recent years, many countries have reduced their corporate income tax rates (e.g., Sweden, Finland and the United Kingdom) and/or adopted restrictions for the deductibility of interest expenses. Changes in the corporate taxation reflect the need, on the one hand, to attract investments and, on the other hand, to protect the tax base. Such international developments make it necessary to evaluate the Norwegian corporate income tax system.
- The committee:
- Consists of both economists and lawyers
- Aims at having a tax system in Norway that contributes to economic growth, creates employment, generates tax revenue and remains competitive also in the future
- Must evaluate the possible changes within the context of the rest of the tax system, as currently the different parts of the tax system are closely integrated (e.g., both individuals and companies are subject to income tax at the rate of 28%) –furthermore, the basis of its recommendations should, in principle, be revenue neutrality
- Will deliver its report by 15 October 2014
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