Today at 10:45 AM, the proposal for the Revised National Budget was presented by Finance Minister Vedum. There were high expectations regarding potential tax changes that could be proposed, such as the "monster tax," changes in the rules for employee stock options and more. However, none of these have been included in the proposal for the revised budget.
The Støre government has presented a proposal to change the rules governing tax liability for shares in companies outside the EEA when investment funds exit the Norwegian tax jurisdiction. Going forward investment funds shall be exempt from exit taxation on shares in companies outside the EEA.
The purpose of the proposal is to ensure consistency in the legislation regarding tax exemption for gains upon divestment and the relocation of investment funds.
Several minor technical legal changes have been made in the Supplementary Tax Act, which was adopted on January 12, 2024. The Supplementary Tax incorporates the main provisions of the Inclusive Framework’s model rules on global minimum taxation, ensuring that large multinational corporations pay at least 15 % tax on their income.
The proposed changes will take effect immediately.
Amendment to the Supplementary Tax Act
It is proposed to change the rules regarding the reversal of deducted VAT on the purchase of passenger vehicles. The change involves replacing the current lump-sum values with the actual value of the vehicle upon resale or other withdrawal from the taxable business, aiming to better reflect the depreciation of the vehicle during its use in the taxable business.
The change is proposed to take effect from July 1, 2024, but the current rules can still be used for motor vehicles delivered before the change takes effect.
Vehicle Taxes
It is also proposed to change the one-time vehicle tax for passenger vehicles and wheelchair-accessible vehicles.
In 2023, a new weight component was introduced for all passenger vehicles. The government has proposed to reduce this new weight component by 0,90 NOK. The tax depends on the weight of the passenger vehicle, so for lighter passenger vehicles, the tax reduction will be slightly lower than for heavier passenger vehicles.
As of today, there is a separate tax group for adapted for and used for transporting wheelchair users. It is proposed to introduce an exemption from the one-time vehicle tax for vehicles in this tax group.
Tax on Mineral Products for Quota-Based Maritime Transport
In line with the 2024 budget, a reduced rate in the CO2 tax on mineral products for quota-regulated maritime transport was adopted. The rate was not implemented pending clarifications with the ESA, but the Tax Administration has concluded after new assessments that the rate can be implemented.
It is proposed that the rate shall be implemented as a direct exemption so that quota-regulated entities can purchase the fuel from registered businesses at a reduced rate. Furthermore, refunds can be sought for purchases from unregistered businesses. The direct exemption can only be granted prospectively.
The ministry therefore plans to implement the reduced rate as a direct exemption for purchases from registered businesses, and to provide refunds for the period from January 1, 2024, until the direct exemption is introduced.
If you have questions regarding these changes, do not hesitate to reach out to us.
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