NorwayNorway

Legal ReferenceThe Tax Act Section 13-1 (In Norwegian)

The Tax Act, which incorporates the Arm’s Length Principle, stipulates that the OECD Transfer Pricing Guidelines (TPG) should be taken into account when applying the Arm’s Length Principle as it is stated in Section 13-1 (1).

Legal ReferenceThe Tax Act Section 13-1 (4)

There is no specific reference to any specific transfer pricing method in the legislation. There is a general reference to the OECD TPG in the Tax Act Section 13-1 (4). The most appropriate method should be applied to any given transaction.

• CUP (not provided)
• Resale Price (not provided)
• Cost Plus (not provided)
• TNMM (not provided)
• Profit Split (not provided)
• Other (not provided)

Legal ReferenceThe Tax Act Section 13-1 (4)

There is a general reference to the OECD Transfer Pricing Guidelines in Section 13-1 (4). The most appropriate method should be applied to any given transaction.

• Hierarchy of methods (not selected)
• Most appropriate method (selected)
• Other (not selected)

Legal ReferenceThe Petroleum Taxation Act Section 4.

A norm price is applied to pricing of crude oil. This is applied to all transactions and is not restricted to transactions between associated enterprises.

• For controlled transactions involving commodities, the guidance contained in paragraphs 2.18-2.22 of the TPG is followed. (not selected)
• Domestic legislation mandates the use of a specific method for controlled transactions involving commodities (not selected)
• Other (selected)

There is a general reference to the OECD Transfer Pricing Guidelines in the Tax Act Section 13-1 (4). Comparability adjustments are required in line with the guidance on comparability adjustments ref. 11 below.

Pan-European comparables are not automatically rejected. The relevance of foreign comparables will be considered on a case by case basis.

Norway’s legislation allows the Tax Authorities to use all information in their possession for the purposes of the administration and enforcement of the Tax Act. However, from an administrative perspective, the use of secret comparables as the basis for an assessment is an approach of last resort.

The concept of arm's length range is recognized in appropriate circumstances. Use of interquartile range is not mandatory, but is commonly used by taxpayers as well as the Norwegian tax authority to improve or narrow down the range.

As there is a general reference to the OECD TPG in the Tax Act Section 13-1 (4) comparability adjustments are required in line with the guidance on comparability adjustments. The tax payer should explain any such adjustments in the transfer pricing documentation. However, it is not a strict requirement under the law or administrative practice to make working capital adjustments when preparing benchmarks based on databases etc.

Norway applies the OECD TPG to transactions involving intangibles.

Legal ReferenceHTVI Implementation Questionnaire

The HTVI approach of chapter VI of the OECD TPG has not been adopted in an explicit manner. However, the arm's length principle as such, is implemented in Section 13-1 of the Tax Act. This provision makes a reference to the OECD TPG. By this reference to the OECD Transfer Pricing Guidelines, the HTVI approach is implemented in Norway and may be applied by Norwegian tax authorities in conformity with the guidance in the OECD TPG.

Norway applies the OECD TPG to intra-group services transactions.

The taxpayer may apply the simplified approach in the OECD TPG Chapter 7 Section D. The simplified approach shall not be regarded, however, as restricting the Norwegian Oil Taxation authorities in conducting a thorough transfer pricing analysis with regard to service costs allocated to Norwegian upstream companies subject to the Norwegian special tax on petroleum.

Norway applies the OECD TPG to financial transactions.

Legal ReferenceThe Tax Act section 6-41.

Norway has implemented rules to limit interest deductions. Norway will as of July 1 2021 implement a withholding tax on interest payments to related parties tax resident in low tax jurisdictions.

Norway applies the OECD TPG to CCAs.

Legal ReferenceThe relevant provisions in the Tax Assessment Act are Sections 8-11 and 8-12.

• Master file consistent with Annex I to Chapter V of the TPG (not selected)
• Local file consistent with Annex II to Chapter V of the TPG (not selected)
• Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
• Specific transfer pricing returns (separate or annexed to the tax return) (selected)
• Other (specify): (not selected)

Legal ReferenceThe relevant provisions in the Tax Assessment Act are Sections 8-11and 8-12.

The transfer pricing documentation is to be filed upon request from the Tax Authority and within 45 days of such request. The transfer pricing documentation may be filed in Norwegian, Swedish, Danish or English. The Country-by-Country Report must be filed in English.

Legal ReferenceThe most relevant provision would be time penalty under Section 14-1 of the Tax Administration Act.

General provisions on penalties in the Tax Administration Act would be applicable in case of non-compliance.

Legal ReferenceThe relevant provisions in the Tax Assessment Act is Section 8-11 paragraph 3 and Section 8-12 paragraph 4.

Enterprises are exempt from the obligation to prepare and file transfer pricing documentation if the group (as defined by law): - has less than 250 employees in the accounting year, and - has sales revenues of 400 million Norwegian kroner or less, or - has a balance sheet total of 350 million Norwegian kroner or less. This exemption does not apply, however, to enterprises subject to the special tax on petroleum; cf. Section 5 of the Petroleum Tax Act. Multinational enterprises with a consolidated revenue of 6,5 billion Norwegian kroner or less are exempt from the obligation to file Country-by-Country Report.

Legal ReferenceThe Petroleum Taxation Act Section 6 paragraph 5. Norway’s MAP Profile

Unilateral rulings are available with respect to intra group sales of natural gas. Detailed information on APAs and MAPs is available at the OECD Norway’s MAP Profile.

• Rulings (not selected)
• Enhanced engagement programs (selected)
• Advance Pricing Agreements (APA) (selected)
• Mutual Agreement Procedures (selected)
• Other (please specify): (selected)

Secondary adjustments are neither mandatory nor prohibited under the law. In administrative practice, secondary adjustments are usually not made.

There are five treaties in force containing the new version of Article 7. For old tax treaties, AOA is applied as a general framework for the TP analysis with certain limitations in the separate and independent enterprise fiction. The remaining 79 treaties in force contain older versions of Article 7.