FOREST TAXATION IN THE UNITED STATES 507 
The income tax law contains certain important special provisions 
concerning the determination of income from certain sources, such 
as trading and similar enterprises, corporations, fisheries, and farm | 
and forest enterprises. 
Income from a corporation is the average net return for the last 
3 years. Corporate income is taxed both to the corporation and to 
the shareholders; to the former at a flat rate and to the latter at 
progressive rates. 
Income from farming is fixed at an assumed average for the last 
3 years. 
Income from a forest property is taken as an assumed annual 
return on the sale value of the property, except when the forest is 
bought for clear cutting, in which case the net return for the year is 
taxed (with a proportionate deduction for depletion of the part of 
the purchase price which is represented by the value of the timber 
felled during the year). In reality, therefore, the Norwegian tax on 
income from going forest properties is a property tax rather than a 
pure income tax. 
The law permits certain deductions from gross income to cover 
expenditures incurred for the determination, safeguarding, and main- 
tenance of the income, together with interest on debts, taxes, and 
certain losses and compulsory contributions. 
A citizen and resident of Norway is allowed to deduct for personal 
exemptions, depending on the number of persons whom he supports. 
If his income is less than 2,000 kroner ($536), he is not required to 
pay a tax. All other persons are subject to taxation on an income 
of 1,000 kroner ($268) or more. 
The rates of the income tax are variable. For domestic corpora- 
tions there is a flat rate of 6 percent; for mutual insurance companies, 
15 percent; for foreign corporations, 25 percent; and for shareholders 
living abroad, 20 percent. Savings banks and cooperative associa- 
tions pay at progressive rates ranging from 2 to 30 percent, while 
the rates for other taxpayers range from 1.8 to 45 percent. Corpora- 
tions are subject also to an income tax on that portion of their income 
which is not distributed among the shareholders as dividends. The 
rate is 10 percent. 
The rural communes also levy an income tax. This tax is based 
on net income, which is ascertained in the same manner as for the 
national income tax. Similar deductions for dependents are allowed 
as for the national i income tax, and usually there is an exempt mini- 
mum. The tax rate is limited to a maximum of 12 percent, but may, 
under certain conditions, be increased to 15 percent or more. 
Those communes which levy an ordinary income tax at a rate of 
10 percent or more may levy an extraordinary progressive tax on 
large incomes. Progression is achieved, not by increasing the tax 
rates, but by increasing the tax base of the ordinary tax for large 
incomes. For incomes above 12,000 kroner and not more than 
20,000 kroner ($3,220 to $5,360) the tax base is increased by 1 percent. 
This rate is increased progressively to 5 percent on incomes above 
150,000 kroner ($40,200). 
The minor communes, such as parishes, school districts, poor 
administration districts, and road ee) may also add a levy to 
the ordinary communal income tax, but the increased tax rates must 
be kept within the limits given above. 
