Revised National Budget 2025: Key changes in taxation and VAT

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Aider Lawyers give you an overview of the most important tax and duty changes in the proposed revised national budget for 2025.


Despite 2025 being an election year and the budget being the first presented by a standalone Labour government, there are few major surprises. Here are the key points within tax, VAT, payroll and accounting.


 


Tax and duties: 


  • Reduced electricity tax from 1 July 2025


  • Introduction of the agricultural income account


  • Shielding interest rate and assessment of the level in the shareholder model


  • The three-percent rule in the exemption method will not be expanded


  • No VAT changes for the resale of taxi vehicles


  • Review of the CFC (NOKUS) rules underway


Corporate tax

The tax rate of 22% for ordinary income for both individuals and companies remains unchanged.


New agricultural income account


The government proposes introducing an agricultural income account from 1 January 2025. The scheme will allow farmers to smooth their income over time by:


  • Recognising the year’s surplus as income directly or depositing it into the account


  • Recognising at least 85% as income when the balance is positive


  • Deducting up to 85% when the balance is negative



This is intended to provide better tax flexibility in industries with fluctuating income.


Value Added Tax (VAT)


The electricity tax is reduced


From 1 July 2025, the government proposes reducing the electricity tax by 4.4 øre/kWh. This is meant to compensate for increased grid tariff costs and support households and businesses. In addition, it is proposed that the Enova levy be removed from 1 January 2026.


No changes for the taxi industry


The government is reversing its planned exception for the taxi industry regarding VAT refunds when reselling passenger cars. Taxi owners must therefore use calculated residual value for VAT calculation – just like everyone else.

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Payroll and HR


Few changes – but adjustments to the “Youth Programme”


The government proposes regulatory changes for participants in the Youth Programme, aimed at young people (18–29 years) without work or education. Participants will receive:


  • Income security equivalent to the minimum rate for work assessment allowance (AAP)


  • A taxable and pension-accruing benefit


  • The benefit is reported in the a-melding and is subject to withholding tax


  • Work and work practice reduce the benefit, but it will always pay to work



Update to option reporting


Reporting of options in start-ups and growth companies is being adjusted. Amendments to the Tax Administration Act § 7-10 are proposed to reflect that growth companies have also been included in the scheme after changes introduced in 2022.

Notable cases

The shielding interest rate in the shareholder model


The government has assessed the level of the shielding interest rate following a request from the Storting. The Ministry of Finance concludes that:


  • There is no single correct markup


  • Long-term bond rates are discouraged


  • Stability in the legal framework carries the most weight


  • No changes are proposed


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The three-percent rule in the exemption method


The Ministry of Finance recommends no expansion of the three-percent rule to include share gains, due to:


  • Administrative burdens


  • Increased uncertainty in gain calculation


  • Possible competitive disadvantage for Norwegian companies



It is also not proposed to increase the rate from 3% to 5%, as it is difficult to determine an appropriate standardised rate.


 


The NOKUS rules


The government will take a closer look at:


  1. Simplification between the NOKUS rules and the supplementary tax


  2. Exemptions for companies in countries with a Norwegian tax treaty



No proposed changes yet – only evaluation.

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