Neutral Taxation of Shareholder Income: A Norwegian Tax Reform Proposal

Arbeitspapier

A Norwegian tax reform committee recently proposed a personal tax on the realized income from shares after deduction for an imputed risk-free rate of return. This paper describes the design of the proposed shareholder income tax and shows that it will be approximately neutral in several important dimensions, provided that full loss offsets are granted. Thus the tax allows some non-distortionary double taxation of corporate equity income. With an appropriate choice of tax rates, it also solves the problem of income shifting under a dual income tax. The final part of the paper clarifies the differences between the shareholder income tax and previous proposals for neutral capital income taxation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: EPRU Working Paper Series ; No. 2003-06

Classification and Topics

• Classification: Wirtschaft ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Business Taxes and Subsidies including sales and value-added (VAT)
• Subject: tax neutrality ; shareholder income tax ; corporate-personal tax integration ; Einkommensteuer ; Dividende ; Körperschaftsteuer ; Steuertheorie ; Besteuerungsprinzip ; Norwegen

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sørensen, Peter Birch
• Event: Veröffentlichung
• (who): University of Copenhagen, Economic Policy Research Unit (EPRU)
• (where): Copenhagen
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/82059
• Last update: 10.03.2025, 11:44 AM CET