Norway: Direct and indirect tax measures in 2026 budget proposal
Changes to VAT, wealth tax, and individual income tax, among others
The government’s 2026 budget proposal includes the following direct and indirect tax measures:
- Marginal reductions in individual income tax and wealth tax
- Changes in wealth tax on housing
- Future changes to the rules for tax-free repayment of paid-in capital effective January 1, 2027
- Repeal of the housing cooperative model
- Changes in taxation of mutual funds
- Reduction in threshold for value added tax (VAT) exemption for electric cars from NOK 500,000 to NOK 300,000 from 2026, and total repeal from 2027
- Changes to VAT on international trade in remotely delivered services
- Changes to right to deduct VAT on receivables between related companies
Read an October 2025 report (Norwegian) prepared by the KPMG member firm in Norway