On 15 October 2025, the Støre-government presented its proposed state budget for 2026. Here are the most important cases mentioned in the state budget related to tax and duty issues.
Tax and duty intensives in cultural heritage protection
The government followed up on a request for a resolution on how the state can incentivize private owners of cultural heritage sites to improve maintenance through tax and fee incentives. The ministry considered several measures, including mandatory property tax exemptions and lower document fee on the sale of buildings, as well as deductions for craftsmen's services and reduced VAT on maintenance costs. The conclusion was that support for cultural heritage protection is provided most effectively and at lower cost through direct subsidy schemes, rather than as special schemes in the tax system. The Ministry therefore did not propose legislation.
Ceiling for property tax on ordinary homes and cabins
The government followed up on the request to investigate an upper limit for property tax on ordinary homes and cabins. The ministry considered the introduction of an upper limit on the maximum amount of property tax, a mandatory basic deduction for all municipalities with property tax and a tax rate that depends on the value of the property. The ministry concluded that the current rules provide greater flexibility without an upper limit on property tax, and that the municipalities already can adapt the tax level to local conditions and their own preferences. The government therefore proposed not to introduce a upper limit on property tax on ordinary homes and cabins.
Differentiated valuation of unlisted shares in wealth tax
The government considered a request to investigate the valuation of unlisted shares in wealth tax based on various characteristics such as voting and dividend rights. The background was that shares without voting and/or dividend rights in several family companies have been transferred to family members living abroad, which has reduced wealth tax for shareholders remaining in Norway. The Ministry found that it is difficult to consider all properties that affect the share value, and that the properties that can be assessed are difficult to value with accuracy. The government therefore proposed not to introduce rules on differentiated valuation of unlisted shares in wealth tax.
Tax rules for student and youth enterprises
The government investigated a request for clarification of the tax rules for student and youth enterprises. According to the Norwegian Tax Administration's practice, student and youth enterprises that run within the framework of Young Entrepreneurship are not generally regarded as businesses, so that tax liability and the obligation to register in the VAT register do not normally arise. If companies started as student and youth enterprises go beyond this framework, a tax and duty obligation may arise.
Company car taxation
The government gave a brief account of the current rules on company car taxation and announced that it will return with a full review of company car taxation in the 2027 budget in line with the request to ensure that the regulations provide correct benefit taxation in line with the principles of the Tax Act.
Capital paid in for tax purposes
The rules on paid-up capital for tax purposes have long been criticized, and both taxpayers and the Norwegian Tax Administration have asked for simplifications. In this connection, the Ministry has submitted two proposals: 1) a proposal for tax exemption for previously paid-in capital on the share, but that the tax exemption is limited upwards to the shareholder's own input value, 2) a proposal for tax exemption up to the shareholder's own input value, regardless of what has previously been paid in on the share. It is proposed that the changes first take effect from 1 January 2027.
Lower limit in resource rent tax for hydropower
Under the current rules, waterpower plants with a labelled output of less than 10,000 kVA are exempt from resource rent tax. This provides an incentive to install lower output in the power plants or to share water resources between several power plants to get below the limit. To counteract this, the Ministry has submitted a proposal to reduce the lower limit to 1,500 kVA for consultation, with a proposal that the changes take effect from 1 January 2027.
Resource rent tax on aquaculture
Companies that pay resource rent tax on aquaculture are currently able to deduct tax on farmed fish from production of salmon, trout and rainbow trout from licenses in the sea, with the exception of licenses for slaughter cages and fish parks. The Ministry has submitted a proposal for consultation on limiting the deduction for tax on farmed fish in the resource rent tax on aquaculture, so that the right of deduction applies to the same licenses that are included in the resource rent tax. It is proposed that the change will take effect from the income year 2027.
Tax on lost fish
With the aim of reducing mortality in aquaculture and giving fish farmers incentives to implement measures to reduce fish losses, the government is submitting a proposal for consultation on the introduction of a tax on lost fish with effect from 1 January 2027. The tax is proposed to also include fish lost to escapes.
Reduced VAT on food products
The government followed up with a request to prepare for a possible reduction in the VAT rate on food and non-alcoholic drinks and investigate the significance of a reduced rate. The government referred to several studies and assessed the impact of a reduced rate on food prices, cross-border trade, distribution between households with different incomes and financial and administrative consequences. The ministry pointed out that the VAT is not a suitable instrument for supporting those who struggle most with high food prices, as the reduction will apply to everyone. More targeted measures, such as increased child benefits, student grants and housing allowances, would be better suited to those who are struggling financially. The Ministry also pointed out that a reduction will result in increased income for the grocery and food industries and will hardly be an effective means of reducing cross-border trade.
