The oil tax for 2022 is expected to be NOK 884 billion. After receiving updated data from oil companies, the projected oil tax for last year was revised upwards from NOK 739 billion to NOK 884 billion. This corresponds to an increase of 20%. The figures also point to a more than threefold increase in the oil tax compared to the previous peak year of 2021.
“The tax revenues of oil companies have never been as high as they are now. The reason for the increase is mainly very high gas prices in 2022. The weak koruna exchange rate also contributes to the high term tax. This is because oil and gas from the Norwegian Continental Shelf are mainly traded in foreign currency, says Funnemark tax director Nina Schanke.
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The previous record was for the 2021 income year, when the oil tax was NOK 295 billion and the negative oil tax (reimbursement of the tax value of losses and unused exempt income) was NOK 7 billion.
Tax revenues from non-renewable oil and gas resources go to a state pension fund abroad, thus benefiting both present and future generations.
The term tax was adjusted upwards
Oil companies conducting production and pipeline transport on the Norwegian Continental Shelf pay advance tax in the form of the so-called advance tax. Installment tax is paid in six installments - three in the income year and three in the following year. It was staged last summer deferred tax for the income year 2022 in the amount of NOK 739 billion. The exemption is based on data provided by oil companies in June 2022. The tax installment paid may be changed before the fourth installment is due on February 1 of the year following the income year. Accordingly, updated data were obtained from companies and the forward tax was revised upwards to NOK 884 billion.
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Advance tax payment
Oil companies have already paid NOK 502 billion out of the total amount of NOK 884 billion. This leaves NOK 2022 billion to pay for the oil tax for the 382 income year. It is to be paid in three installments in the first half of 2023.
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Source: Skatteetaten
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