Norway: Direct and indirect tax measures in 2026 budget proposal

Changes to VAT, wealth tax, and individual income tax, among others

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october 16, 2025

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

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