Norway’s Parliament may amend legislation to delay for a year the introduction of a tax deadline for local investors taking advantage of a tax wrapper regime for equity based savings.
As recently outlined in InvestmentEurope (see below), the akjesparekonto regime has drawn significant interest from Norwegians looking to maintain ongiong investments in equities without needing to pay tax every time they turnover holdings. Targeting individual investors, the regime is similar to ones in Sweden (Investeringssparkonto) the UK (Individual Savings Account) and elsewhere.
The regime comes with a tax deadline of 1 January 2019, which would apply to assets transferred into an akjesparekonto after that date.
However, reports from Norway suggest that the Parliament’s majority right of centre parties -Høyre, Venstre, Frp and KrF – wish to extend the deadline by another year.
Members of the Finance Committee in Parliament have proposed that the extension be addressed by fiscal legislation expected in December.
An argument has been put forth by the Norwegian Consumer Council that if the original deadline is upheld, then some two-thirds of individual investors who would have the right to assign assets to an account, would miss out on the tax benefits, because they are yet to make the switch.
Members of the Committee also cited the benefits to the Norwegian economy of capital allocated via the regime, and cited evidence from Sweden that it took up to four years for a transition to be completed for relevant assets into that country’s local equivalent tax efficient account.
The proposal to extend the deadline in Norway has been reported by local broadcaster NRK, and cited by VFF, the Norwegian Fund and Asset Management Association.