May 4, 2016 / 2:50 PM / 3 years ago

UPDATE 1-Norway to cut corporate, personal tax rates to 23 pct

(Adds confirmation, details)

OSLO, May 4 (Reuters) - Norway will cut the corporate income tax rate to 23 percent from the current 27 percent by 2018 and will introduce a tax on financial-services companies in 2017 after lawmakers reached a compromise agreement, the country’s political parties announced on Wednesday.

The basic personal tax rate will also be cut to 23 percent from 27 percent. Personal income is subject to progressive taxation, however, which raises payments significantly for many income groups.

The right-wing minority government had previously said it wanted to cut the corporate tax rate to 22 percent. It agreed to the slightly higher rate to win a broad agreement that included three centrist parties and left-wing Labour.

As part of the deal, further reductions in the company tax rate will be considered in the future.

The compromise included only a small cut in Norway’s wealth tax, which the government had wanted to remove completely.

A tax on the financial industry will be introduced in 2017 to take account of the value-added services it provides, the parties said, without disclosing details.

The financial newspaper Dagens Naeringsliv, quoting sources, reported online that the tax would amount to an estimated 3.5 billion Norwegian crowns ($430.59 million) in 2017.

$1 = 8.1284 Norwegian crowns Reporting by Joachim Dagenborg, writing by Gwladys Fouche, editing by Terje Solsvik, Larry King

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