High oil and gas prices and a weak Norwegian krone set a new record for oil tax, according to new data from the Norwegian Tax Office.
The fixed tax for oil companies amounted to NOK 2022 billion in 882,7. This represents an increase of NOK 583,5 billion, or 195 percent, compared to 2021, when the amount was NOK 299,2 billion. They show new data regarding tax settlements for oil companies published today by the Norwegian Tax Agency.
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– The reason for such a large increase is mainly the very high gas prices in 2022 and the weak exchange rate of the krona, as oil and gas from the Norwegian continental shelf are mainly sold in foreign currency, says Tax Director Nina Schanke Funnemark.
23 oil companies paid oil tax in the total amount of NOK 889,3 billion for 2022. A negative tax was established (tax value of the annual deficit or uncovered deficit/unused exempt income arising in the income years 2002-2019) with a total value of NOK 6,6 billion. Two companies have zero tax charged.
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In June 2022, new oil tax rules were adopted. The changes consist in replacing the special tax on petroleum activities with a cash flow tax with immediate recognition of the costs of new investments. The changes came into force with effect from the 2022 income year inclusive.
Oil companies pay ordinary corporate income tax of 22 percent. In addition, there is a special tax on income from offshore activities. To make the special tax neutral, the accrued corporate income tax is deducted from the special tax base. This means that the special tax rate has technically been adjusted upwards from 56% to 71,8% to keep the overall tax rate at 78%.
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Source: skatteetaten
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