Fossil Fuel Support - NOR
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NORWAY: GENERAL METADATA

DATA DOCUMENTATION

GENERAL NOTES

The fiscal year in Norway coincides with the calendar year.

Tax expenditures in Norway have been reported in the national budget (St. meld. nr.1 (Nasjonalbudsjettet)) since 1999. Since FY2010-2011, estimates of the tax expenditures listed below can be found in the following table in the budgetary reports: "Tax expenditures and sanctions by sector" (Skatteutgifter og -sanksjoner for næringslivet).

PRODUCER SUPPORT ESTIMATE

Income derived from oil and gas production is subject to a special resource tax of 50%, in addition to the ordinary corporate income tax of 27%. For general income tax purposes, depreciation expenses are calculated according to rules which are unique to the oil and gas industry: expenses incurred in acquiring pipelines and production facilities may be completely written off in straight line over six years, starting from the year when the investment was made, i.e. up to 17% annually. The tax base for the purpose of calculating a special resource tax is the ordinary income-tax base, from which cost uplift is deducted. The cost uplift implies that the petroleum industry can write off as much as 22% of the value of depreciable operating assets as of 2005 in straight line over four years, starting from the year when the investment was made, i.e. up to 7.5% annually. If a company incurs losses in a given year, these losses can then be carried forward (with interest, since 2002). If oil and gas companies terminate their activities in Norway with losses, the government reimburses the tax value of those losses.

Since 2005, oil and gas companies reporting a loss for tax purposes can also obtain a reimbursement of the tax value (for regular corporate tax and resource tax) of their direct and indirect exploration expenses (excluding financial expenses). In practice, this means reimbursement by the government of up to the full value of all the direct and indirect exploration expenses. In this respect, the government shares symmetrically in both profits and losses from exploration and production of petroleum products.

In addition to the regular corporate income tax and special resource tax, petroleum producers must also pay taxes on emissions of carbon dioxide and nitrogen oxide. As of 2014, the offshore oil and gas sector pays the highest CO2 tax with NOK 410 per tonne of CO2. In the hydropower sector, excess returns in generation are taxed at 31%, in addition to the normal corporate income tax rate of 27%.


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Source: OECD, FFS database, 2015

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Sep-15

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Fiscal Year starts on 1 July

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Norwegian Krone
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Indicator

PSE: Producer Support Estimate

GSSE: General Services Support Estimate

CSE: Consumer Support Estimate

Stage

EXTRACT: Extraction or mining stage

TRANS: Transportation of fossil fuels (e.g., through pipelines)

REFIN:Refining or processing stage

GENER: Use of fossil fuels in electricity generation

INDUS: Use of fossil fuels in the industrial sector

END: Other end uses of fossil fuels

Statutory or Formal Incidence

consumption: Direct consumption

returns: Output Returns

income:Enterprise Income

inputs: Cost of Intermediate Inputs

labour: Labour

land: Land and natural resources

capital: Capital

knowledge: Knowledge

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Database
published : September 2015


These tables are a complement to the report Inventory of Estimates Budgetary Support and Tax Expenditures for Fossil Fuels 2015. They comprise the summary of fossil fuels support expenditures for OECD and BRIICS countries.

Complete documentation by country is available at:

Fossil Fuel Support - NORAbstract



NORWAY: GENERAL METADATA

DATA DOCUMENTATION

GENERAL NOTES

The fiscal year in Norway coincides with the calendar year.

Tax expenditures in Norway have been reported in the national budget (St. meld. nr.1 (Nasjonalbudsjettet)) since 1999. Since FY2010-2011, estimates of the tax expenditures listed below can be found in the following table in the budgetary reports: "Tax expenditures and sanctions by sector" (Skatteutgifter og -sanksjoner for næringslivet).

PRODUCER SUPPORT ESTIMATE

Income derived from oil and gas production is subject to a special resource tax of 50%, in addition to the ordinary corporate income tax of 27%. For general income tax purposes, depreciation expenses are calculated according to rules which are unique to the oil and gas industry: expenses incurred in acquiring pipelines and production facilities may be completely written off in straight line over six years, starting from the year when the investment was made, i.e. up to 17% annually. The tax base for the purpose of calculating a special resource tax is the ordinary income-tax base, from which cost uplift is deducted. The cost uplift implies that the petroleum industry can write off as much as 22% of the value of depreciable operating assets as of 2005 in straight line over four years, starting from the year when the investment was made, i.e. up to 7.5% annually. If a company incurs losses in a given year, these losses can then be carried forward (with interest, since 2002). If oil and gas companies terminate their activities in Norway with losses, the government reimburses the tax value of those losses.

Since 2005, oil and gas companies reporting a loss for tax purposes can also obtain a reimbursement of the tax value (for regular corporate tax and resource tax) of their direct and indirect exploration expenses (excluding financial expenses). In practice, this means reimbursement by the government of up to the full value of all the direct and indirect exploration expenses. In this respect, the government shares symmetrically in both profits and losses from exploration and production of petroleum products.

In addition to the regular corporate income tax and special resource tax, petroleum producers must also pay taxes on emissions of carbon dioxide and nitrogen oxide. As of 2014, the offshore oil and gas sector pays the highest CO2 tax with NOK 410 per tonne of CO2. In the hydropower sector, excess returns in generation are taxed at 31%, in addition to the normal corporate income tax rate of 27%.


http://www.oecd.org/site/tadffss/http://www.oecd.org/site/tadffss/Country notesftp://agrpub:public@ftp.oecd.org/FFS2015/NOR_country overview.pdfSourcesftp://agrpub:public@ftp.oecd.org/FFS2015/NOR_sources.pdf
Contact person/organisation

ffs.contact@oecd.orgmailto:ffs.contact@oecd.orgName of collection/source

Source: OECD, FFS database, 2015

Unit of measure usedNorwegian KronePeriodicity

Fiscal Year starts on 1 July

Date last updated

Sep-15

Key statistical concept

Indicator

PSE: Producer Support Estimate

GSSE: General Services Support Estimate

CSE: Consumer Support Estimate

Stage

EXTRACT: Extraction or mining stage

TRANS: Transportation of fossil fuels (e.g., through pipelines)

REFIN:Refining or processing stage

GENER: Use of fossil fuels in electricity generation

INDUS: Use of fossil fuels in the industrial sector

END: Other end uses of fossil fuels

Statutory or Formal Incidence

consumption: Direct consumption

returns: Output Returns

income:Enterprise Income

inputs: Cost of Intermediate Inputs

labour: Labour

land: Land and natural resources

capital: Capital

knowledge: Knowledge

Recommended uses and limitations




Database
published : September 2015


These tables are a complement to the report Inventory of Estimates Budgetary Support and Tax Expenditures for Fossil Fuels 2015. They comprise the summary of fossil fuels support expenditures for OECD and BRIICS countries.

Complete documentation by country is available at: