Near doubling of the petroleum tax in Norway last year
Increased oil prices have contributed to a jump in tax revenues. The petroleum tax for 2017 was NOK 96 billion compared with 53.5 the year before.
Figures from the Norwegian Tax Directorate shows that the petroleum tax revenue increased by NOK 42.5 billion in the tax year 2017 compared to the previous year.
– The increase is mainly due to increased oil and gas prices, the directorate writes.
The tax system is structured so that companies in a deficit position are reimbursed for oil and gas exploration. For 2017, the amount amounted to NOK 3.3 billion, divided among 28 companies. This is a decline of NOK 4.4 billion from 2016.
– The purpose of the exploration reimbursement scheme is to equate new companies in the exploration phase with established companies that show a profit, according to the tax authorities.
Oil companies pay ordinary corporate tax of 24 per cent, but must also pay a special tax of 54 per cent for revenues coming from the Norwegian shelf. Thus, the marginal tax rate on income is 78 per cent.
© NTB scanpix / #Norway Today