The Ministry of Finance proposes to change the provision for taxation of equity funds and investment accounts.The changes are intended to counteract double taxation and to provide funds with a better regulatory framework.
The taxation of equity funds and investment accounts were reviewed and amended in 2016. In the hearing, the Ministry suggests that experience shows that it is necessary to amend the rules, no doubt because the investment trade has been complaining about the existing regulatory framework and some funds have already decided to relocate abroad.
As a result, the Ministry proposes several changes to the legislation. One of the changes relates to the fact that today interest income y is taxable both within the fund itself and for the unit holders. This can cause double taxation in some situations. The Ministry proposes that the investment funds be exempt from tax on interest income. An alternative solution is to expand the tax deduction for the fund.
The Ministry also proposes that the term “investment funds” in the Tax Act 1999 should have a more targeted and relevant limitation. The term investment funds in section 10-20 shall apply to UCITS-fonds, Norwegian national funds and equivalent fund established in other EEA states.
The changes are intended to come into force from the income year of 2026.
The consultation deadline is 30 April 2025.
