Tax exemptions for shipowners

Tax Extemtion, Tanker, ShipGas Tankers, Photo: Pixabay.com

Government seeks to expand tax exemptions for shipowners

The Government wants to introduce a new ten year period of tax exemptions for Norwegian-controlled shipping companies, and to expand the scheme to apply to wind turbines.

 

They are presently working to get the exemptions approved by the European Union (EU), reported Dagens Næringsliv newspaper.

‘It’s important that the government ensure solid, competitive conditions for this industry.

The tax scheme has been approved by the EFTA Surveillance Authority (ESA) with an expiry date of the 1st of July. Therefore, we are now working toward giving notification of a new one,’ said the Minister of Finance, Siv Jensen.

shipping operations are exempt from tax

The shipping tax scheme implies that operating revenues from shipping operations are exempt from taxation so long as profits are retained within the business.

The scheme also includes seismic, and other vessels involved in offshore operations, and is expanding to include ships engaged in offshore wind turbine projects.

The finance minister believes that the expansion fits well with ecological ambitions, and a gradual shift from offshore oil and petroleum activity.

Managing Director, Sturla Henriksen, of the Norwegian Shipowners’ Association, believes the scheme to be very important, especially for the offshore industry, in light of the oil price collapse of 2014, which caused oil service vessels to lose half of their revenues for three years, and the rig companies for two.

 

 

© NTB Scanpix / Norway Today

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