Norway Opens a Consultation to Implement June 2024 and January 2025 OECD Administrative Guidance

The Norwegian Minimum Taxation Act was enacted as Law-2024-01-12-1 of January 12, 2024. This implemented the Pillar Two Global Minimum Tax as provided in the EU Minimum Tax Directive.  On April 3, 2024, Regulations for the implementation of the Minimum Tax Law were issued.

On June 16, 2025, the Norwegian Ministry of Finance opened a consultation on a Draft Bill to amend to the Norwegian Minimum Tax Act (as well as further amendments to the Regulations) for the June 2024 and January 2025 OECD Administrative Guidance. The proposed amendments generally apply for financial years beginning after December 31, 2023.

OECD Administrative Guidance

The amendments in the June 2025 Draft Bill (including Draft Regulations) include amendments for the June 2024 and January 2025 OECD Administrative Guidance (AG). This includes:

– Aggregate DTL Category basis – Article 1.2.1 June 2024 AG

– Exclusion of certain types of GL accounts and separate tracking – Article 1.2.1 June 2024 AG

– Exclusion of GL accounts that generate standalone DTAs – Article 1.2.1 June 2024 AG

– Exclusion of swinging accounts and separate tracking – Article 1.2.1 June 2024 AG

– FIFO/LIFO Basis – Article 1.2.2 June 2024 AG

– Aggregation of Short-term DTLs – Article 1.2.3 June 2024 AG

– Reversal of DTLs that accrued before the Transition Year – Article 1.2.2 June 2024 AG

– 5 year unclaimed accrual election – Article 1.2.2 June 2024 AG

– Recalculated deferred tax where GloBE carrying value differs from accounting carrying value – Article 2.1.2 June 2024 AG

– GloBE and accounting carrying values and the Transition Rules – Article 2.1.2 June 2024 AG

– Additional provisions for Intragroup transactions accounted for at cost – Article 2.1.2 June 2024 AG

– General rules for allocating cross-border, current taxes under a cross-crediting corporate tax system: 4 Steps – Article 3.1.3 June 2024 AG

– Specific rules for foreign PEs/CFCs, Hybrids/rev hybrids with domestic source income – Article 3.1.3 June 2024 AG

– Cross-crediting between Permanent Establishments and distributions from foreign subsidiaries – Article 3.1.3 June 2024 AG

– Allocation of deferred tax expenses and benefits from a Parent Entity to a CFC, PE Hybrid or Rev Hybrid: 5 step process – Article 4.2 June 2024 AG

– Five-Year Election to exclude the allocation of all deferred tax expenses and benefits to CFCs, PEs, Hybrids and Rev Hybrids – Article 4.2.2 June 2024 AG

– Exclusion of deferred tax assets or liabilities arising under a Blended CFC regime from transition rules – Article 4.2.3 June 2024 AG

– Determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity – Article 5.2.2 June 2024 AG

– Non-group owners: Partially owned Flow-through Entities – Article 5.3.2 June 2024 AG

–  Non-group owners: Indirect minority ownership – Article 5.3.5 June 2024 AG

– Taxes allocated to a flow-through entity -Article 5.4.2 June 2024 AG

– Hybrid entities – Taxes pushed down include indirect owners – Article 5.5.2 June 2024 AG

– Hybrid entities – Entities located in jurisdictions without a Corporate Income Tax system – Article 5.5.4 June 2024 AG

– Extension of taxes pushed down to include Reverse Hybrids – Article 5.6.2 June 2024 AG

– Option to not impose top-up tax liabilities on SPVs used in securitization transactions – Article 6.1.4 June 2024 AG

– Amendments to the Switch-Off rule – Article 6.1.4 June 2024 AG

– New definition: Securitization Entity – 6.1.4 June 2024 AG

– New definition: Securitization Arrangement – Article 6.1.4 June 2024 AG

– Amendments to Article 9.1 of the GloBE Rules for the deferred tax transition rules (governmental arrangements including new CIT regimes and a grace period) (January 2025 AG).

Note that two aspects of the June 2024 OECD Administrative are not included as the Ministry of Finance takes the view that the existing law covers these:

– Extension of the Substitute Loss Carry-forward DTA to PEs, hybrids and rev hybrids -Article 4.1 June 2024 AG

– Exclusion of GloBE carrying value from SBIE – Article 2.1.2 June 2024 AG

Securitisation Entities

The Fourth Set of OECD Administrative Guidance includes guidance on the treatment of Securitization Entities.

Jurisdictions implementing QDMTTs may exclude a Securitisation Entity from its scope (such that the Securitisation Entity is not treated as a Constituent Entity for the purposes of that QDMTT).

Where it does apply a QDMTT to securitisation entities, the QDMTT is not required to impose top-up tax liabilities on SPVs used in securitisation transactions and any QDMTT liability in respect of a Securitisation Entity should generally be imposed on other Constituent Entities located in the jurisdiction.

The Consultation proposal is inconclusive on which approach to take and is seeking feedback, as such this is excluded from the current Draft Bill. 

For the purposes of the QDMTT safe harbour, the Switch-off rule will be amended so that QDMTTs that impose the top-up tax liability computed for a Securitisation Entity on other Constituent Entities located in the jurisdiction or that exclude Securitisation Entities from the scope of the tax would both still meet the Consistency Standard.

For the purposes of the UTPR, the Draft Bill proposes to exclude Securitisation Entities from liability to top-up taxes under the UTPR (for accounting periods beginning after December 31, 2024).

Safe Harbour & Transitional Penalty Relief

The Draft Bill also includes some further amendments to the Safe Harbours to reflect the January 2025 OECD Administrative Guidance:

– Amendments to CbCR Safe Harbour for Article 9.1 amendments (January 2025 AG); and

– Amendments to QDMTT Safe Harbour for Article 9.1 amendments (January 2025 AG).