Proposed temporary changes to the Norwegian petroleum tax regime

In order to i.a. secure jobs and ensure green investments, the Norwegian government proposes temporary tax reliefs for the stakeholders in the petroleum tax business.

The Norwegian government suggests some temporary changes to the petroleum tax regime, for discussion in the Parliament on 12 May. 

The proposal suggests an immediate tax deduction in the special petroleum tax for investments made in 2020 and 2021, including the non-taxable income. 

Moreover, an immediate tax deduction will be granted for the calculated costs of planned investments until the production starts, provided that they be filed by 2021 and approved by 2022. 

According to the proposal, the non-taxable income will be reduced from 5.2 per cent per annum the first four years to 10 per cent the first year. 

The tax value of the loss which then occurs in 2020 and 2021, may be paid in cash.

The Ministry of Finance still has to ensure that the proposal complies with the EEA agreement.

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