On Mar. 25, 2025, NOR FA welcomed the consideration of its input from NOR GVT.
Confirmed that it is pleased that the Ministry of Finance will not follow up on the proposal to change the tax rules for companies' investments in securities accounts.
On Jan. 30, NOR GVT consulted on fixed income and equity funds tax.
The Ministry of Finance submitted for consultation a proposal for changes to the tax rules for mutual funds, to counteract double taxation and provide Norwegian funds with better framework conditions, reducing possibilities for unintended adjustments.
Mutual funds fulfill important function in society, and NOR GVT wants good framework conditions for such investments, with key aspect to create tax rules that meet funds' needs, and which are well anchored in basic principles of the Norwegian tax system.
The Tax Act provisions on the mutual funds were revised with effect from 2016, and experience shows that it is now necessary to make individual changes to the rules.
Today, interest income is taxable both in the fund itself and with the unit-holder, so in some situations, this can mean that the same interest income is then taxed twice.
The solution that is recommended is based on funds being exempt from tax on interest income, so that all of the taxation of all the interest income occurs with the unit-holder.
Also, the Tax Act has a special provision for funds that exempts funds from tax liability on profits from the sale of shares in companies domiciled in countries outside the EEA.
This exemption provision is to be extended to include dividends from firms domiciled in countries outside EEA and financial instrument with shares as the underlying object.
Since the autumn of 2024, the Ministry of Finance has been working at a high pace to improve the taxation conditions for all of the fund management industry in Norway.
A number of measures have been taken, such as opening up currency hedging in unit classes in Nov. 2024 and exemptions from limitation for fund repurchase agreements.
Consultation Process
The Ministry of Finance has issued a letter, with a consultation note, to various bodies including NOR CB, NORFSA, NOR FA, NOR Tax, NOR VFF, NOR OSLO, and academia.
Effectiveness
Interested parties comments can all be made to the consultation, until Apr. 30, 2025.
Mar. 2025 Consultation Update
On Mar. 24, 2025, NOR GVT, via Ministry of Finance, confirmed various inputs to the proposal showed contexts where it may be justified for firms to invest in mutual funds.
Also show the proposal for tightening, in the memorandum, is broader than necessary.
In the attached letter to NOR FA, the Ministry announced changes to the proposal that companies' investments in funds should not be covered exemption will be considered.
Also, both the entry into force and the solution itself will be considered in more detail.
Mar. 25, 2025 NOR FA Response
On Mar. 25, 2025, NOR FA welcomed the consideration of its input from NOR GVT.
Confirmed that it is pleased that the Ministry of Finance will not follow up on the proposal to change the tax rules for companies' investments in securities accounts.
