Normal interest rate for the taxation of low-cost loans from an employer


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The benefit of a low-interest loan within an employment relationship is currently taxed using a normal interest rate which is set by the Directorate of Taxes, six times a year.

The rate applies for the income year 2016

If you need rates for the tax return, you must check the rates for 2017

By "income year", we mean the year in which the income or expense arises. The rates for the income year are used in the tax return and tax calculation.

By "assessment year", we mean the year after the income year and in which the tax return for the income year must be submitted/checked and the tax calculated.

Normal interest rate for January and February 2016 2.5 percent
Normal interest rate for March and April 2016 2.3 percent
Normal interest rate for May and June 2016 2.3 percent
Normal interest rate for July and August 2016 2,2 percent 
Normal interest rate for September and October 2016 2,2 percent
Normal interest rate for November and December 2016 2,2 percent

Modified on February 19, 2016 by regulation amending skattelovforskriften § 5-12-5 of December 18, 2015 No. 1768, is the expertice to determine the normal interest rate given to the Directorate of Taxes.

The normal interest rate is determined on the basis of a base rate. The base rate is determined by the Financial Supervisory Authority of Norway on the basis of a sample of prices for mortgages from the Finance portal. The sample is based on a standard annuity mortgage of NOK 1,500,000, within a 50 percent confidence interval with a repayment period of 30 years and a borrower aged 45, and covering a nationwide market area. The mean is calculated based on the five best offers with nationwide market areas and without any special requirements regarding professional affiliation or membership. The mean is calculated to three decimal places. The base rent is determined before the end of the tenth day after the observation period. The Financial Supervisory Authority of Norway publishes the base rate on its website.

The normal interest rate is determined by no later than the 12 days after the end of the observation period for determining the base rent and is equal to the determined base rate minus 0.15 percentage points, rounded to the nearest 0.1 percentage point. The normal interest rate will only be changed if, after the deduction of 0.15 percentage points but before rounding, the base rate indicates a change of at least 0.1 percentage points compared with the current normal interest rate.

More information on the rules for determining the normal interest rate and base rate.

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