Norwegian tax proposal welcomed by funds industry
Proposals to adjust personal tax rates regarding long term savings could be beneficial to the country’s funds industry, according to comments from the Norwegian Fund and Asset Management Association (VFF).
The Norwegian government has proposed (https://www.regjeringen.no/no/aktuelt/gunstigere-ordninger-for-sparing-til-pensjon/id2552654/ ) evening out the tax rates applicable to money put in versus when money is taken out from so-called individuell pensjonssparing (IPS, individual pensions savings). Currently when money is taken out it is taxed as retirement income – subject to a total tax rate that is actually made up of multiple taxes. Money that remains invested is free from wealth or income taxes on returns – which is expected to remain the case. But the government has proposed that the annual sum that can be saved under the new regime rise to NOK40,000 (€4,285) from the existing NOK15,000 level. There would be no ceiling to total sums saved.
Adjustments have also been proposed to the fiscal regime governing pension savings made by self-employed persons, again with an eye to encouraging long term savings.
Bernt Zakariassen, CEO of VFF, said: “This is good news for all Norwegians who wish to save more for their own pension. The changes will make this arrangement much more beneficial for the individual saver.”
The new fiscal regime is proposed to take effect as of the fiscal 2017 year in Norway.