This means the proposal for you and your business

The government has presented proposals for the 2027 state budget in Prop. 1 LS (2026–2027) Taxes and Fees 2027. For business owners, owners and private individuals, the proposal contains several changes that deserve attention. Below we have selected those we believe are most practically relevant to our clients.

1. Lower tax on work

The income tax is reduced by about 6.4 billion kroner. The social security contribution on wages, social security and business income is cut by 0.2 percentage points, the personal allowance is increased to 120,180 kroner, and the company car tax is made more targeted (325 million kroner in total relief). The changes have implications both for employees and for business owners who receive wages from their own businesses.

2. Formuesskatten – minor adjustments

The starting point for step 2 (NOK 21.5 million) and the limit for low valuation of primary housing (NOK 14 million) remain nominally unchanged, while the base tax deduction is increased to NOK 1,990,000. The permanent scheme for deferred payment of wealth tax on working capital introduced in 2026 remains unchanged. For clients with significant private wealth, the arrangement of wealth tax will be central to the announced tax reform.

3. Announced tax reform – changes are expected

The government will present a parliamentary report on comprehensive tax reform early in 2027 based on the recommendations of the Tax Commission in NOU 2026: 9. For clients planning generational change, the sale of a business, or restructuring, the process should be followed closely, particularly with regard to capital taxation.

4. Tightening in the Skattefunn scheme

To counter detected abuse, the government is tightening the Skattefunn: guarantee period for application processing is abolished, a total deductible framework of 25 million kroner per group is introduced, and the deductible entitlement is limited for R&D costs from countries outside the EEA without a tax agreement with Norway. Businesses that use the scheme, especially in groups with multiple applications, should consider how the new framework will impact them.

5th share savings account is expanded

The share savings account is expanded to also include shares and equity certificates traded on multilateral trading facilities such as Euronext Growth. For clients investing in growth companies or smaller listed companies, it may be advisable to review the portfolio with the aim of structuring it through the share savings account.

6. Value-added tax on electric vehicles is phased out further

The threshold for the VAT exemption for electric vehicles is reduced from 300,000 to 150,000 kroner from January 1, 2027, with a planned full phase-out from 2028. The change brings an estimated additional revenue of 3.8 billion kroner in 2027. For businesses and individuals planning the purchase or leasing of an electric vehicle in the upper price segment, the timing of the purchase can have a significant tax impact.

7. What should you do now?

The proposal is scheduled to be discussed in the Storting later this autumn, and changes may come before a final decision is made. However, our advice is to assess now how the announced changes affect your business, your ownership positions, and planned transactions. In particular, the tax reform, the Skattefunn tightening, and the VAT phase-out for electric vehicles may influence decisions that should be made this year.

8. We assist

Our tax lawyers closely follow the budget process throughout the autumn and assist with all matters related to the above topics – from tax planning and ownership structures to the assessment of specific transactions. Contact us for a concrete assessment of what the budget means for you or your business.