Norwegian Relief Measures Announced
Norway has unveiling a package of measures which includes a value-added tax cut for certain industries, and the postponement of advance tax deadlines.
These new measures are as follows:
- A further reduction in VAT for certain industry sectors, including passenger transport, accommodation and parts of the cultural sector, whose supplies are typically subject to a 12 percent VAT rate. The rate was previously lowered to eight percent but the Government has decided to lower this rate still, to seven percent, for transactions during the period April 1, 2020, to October 31, 2020.
- For personal taxpayers, the first instalment of advance tax is postponed from March 15 to May 1, 2020, with the second instalment postponed from May 15 to July 15, 2020.
- For corporate taxpayers, the second instalment of advance tax is postponed from April 15 to September 1, 2020, although electric power enterprises will not be able to postpone advance tax payment on ordinary income.
The Government had previously announced that it would amend corporate tax regulations so that loss-making companies could re-allocate their losses to offset previous years’ taxed profits, and permit owners to postpone payments of wealth tax.
Additionally, to support airlines, air passenger tax will be suspended for flights in the period from January 1 to October 31, with the payment of aviation charges postponed until June 31.
Furthermore, the Government previously announced that the payment deadline for the first VAT instalment is to be extended from April 14 to June 10.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look