African Press International (API)

"Daily Online News Channel".

Less death duty on houses

Posted by African Press International on August 8, 2008

The Government wants to reduce estate duty for the majority of Norwegians, by raising the tax free deduction. However those who inherit shares in unlisted companies will no longer get the present rebate.

Jon Stordrange, head of the tax payer’s association, applauds the cut, but deplores the the increase in tax.

PHOTO: Bo Mathisen

At present, the first NOK 250.000 (USD 50.000) inherited is tax-free. Children or parents have to pay 8 percent duty on the next NOK 300.000. If you inherit more, the additional sum is taxed at 20 percent.

Others who inherit, have to pay a slightly higher 10 percent and 30 percent rate.

According to news bureau ANB, the Government wants to raise the deductible sum to NOK 400.000 (USD 80.000).

People who inherit shares in companies not listed on the stock exchange will lose todays tax rebate. At present they only have to pay tax on a third of the estimated value. Cash is taxed at a full rate. The new rules try to remove this bias.




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