Norway Issues Consultation and Draft Law For Pillar 2 Rules

  1. General
  2. Currency
  3. Domestic Groups
  4. QDMTT
  5. Excluded Dividends
  6. OECD Administrative Guidance
  7. Safe Harbours
  8. Administration


Yesterday, the Norwegian Ministry of Finance launched a consultation (including draft legislation) on the implementation of the Pillar Two GloBE Rules in Norway.

The consultation closes on August 1, 2023, with the proposals to be implemented from January 1, 2024.

The draft legislation includes an Income Inclusion Rule (IIR) and a domestic minimum tax (intended to be a QDMTT). The draft legislation does not contain any provisions for an Under-Taxed Profits Rule (UTPR). The explanatory guidance states that the Ministry of Finance will revisit the UTPR at a later date.

There are around 40 Norwegian groups that are likely to be within the scope of the IIR/QDMTT.

The draft legislation includes amendments to the:

Tax Act

Tax Administration Act

Regulations to the Tax Act

Regulations to the Tax Administration Act

The main legislative changes to implement the GloBE rules are in a new Chapter 20 in the Tax Act and accompanying Regulations.

The draft law closely follows the OECD Model Rules and reflects the latest guidance, including aspects of the Commentary, OECD Safe Harbours Guidance and the Administrative Guidance.

Norway’s approach to drafting the draft law is similar to Sweden and the UK in that it redrafts the OECD Model Rules (and aspects of other OECD relevant guidance) into domestic law, rather than transposing them with a static or dynamic reference (as Switzerland and New Zealand have done).

Key Aspects of the Draft Legislation

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