1 April 2020
The Norwegian government has issued a release on new measures to curb the financial impacts of the COVID-19 outbreak. Key tax measures include the following:
Lowering of value added tax reduced rate (new proposal)
The reduced-rate value added tax (VAT) is further reduced from 8 per cent to 7 per cent from 1 April 2020 to 31 October 2020 for industries including tourism and certain sporting activities. These industries generally have a VAT rate of 12 per cent.
Reduced employer contribution (announced, followed up in Revised National Budget)
The employer's social insurance contribution is to be reduced by 4 percentage points for one term, equivalent to two months. This proposal will be submitted in the revised budget. For zone V (the former Finnmark county and region of Nord-Troms), where the rate is zero, compensation of NOK 250 million is to be provided.
Postponed advance tax payment for personal taxpayers (implemented and new proposal)
The first instalment due date for advance tax payment is postponed for personal taxpayers from 15 March to 1 May 2020. The second instalment due date for advance tax payment is postponed for personal taxpayers from 15 May to 15 July.
Postponed deadline for advance tax payment for non-personal taxpayers (companies) (adopted, to be amended 27 March)
The second instalment due date for non-personal taxpayers (companies, etc.) has been postponed from 15 April to 1 September 2020. However, electric power enterprises will not be able to postpone advance tax payment on ordinary income.
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