Slide 1: Overview Norwegian petroleum taxation
Overview Norwegian petroleum taxation 2021 Artbox Report Template All rights reserved © Artbox AS 2021
Slide 2: Overview – Norwegian petroleum taxation: tax rates and cash flow-based regime
2 Overview – Norwegian petroleum taxation Petroleum companies are subject to both ordinary corporate taxation and special Taxation is based on net profit taxation pursuant to the Petroleum Tax Act of 13 June 1975. In general, the company’s net profit is the basis for taxable income in both the corpo
Slide 3: Interest deductions, temporary amendments and norm price
3 Overview – Norwegian petroleum taxation From a NPV point of view, the tax regime is favourable when screening investments as well as providing for a Interest deductions more robust cash-flow in a low-price environment due to the pay out of tax losses in the special tax (71.8%). In the corporate ta
Slide 4: Tax loss carry forward, depreciation of CAPEX and uplift rates
4 Overview – Norwegian petroleum taxation Exhibit 2 Petroleum tax – tax depreciation schedule and uplift rates Tax loss carry forward In the cash flow-based special tax, the tax value of losses will be paid out in cash. Hence, there will be no loss Petroleum tax depreciation of CAPEX carry forwards
Slide 5: Abandonment, tax payment schedule and tax costs year to date
5 Overview – Norwegian petroleum taxation Abandonment (ABEX including accretion) Tax payment schedule Costs related to abandonment are deductible when incurred. In the financial statements, these costs are Exhibit 4 shows the payment cycle and Vår Energi’s estimated payments of current tax in MNOK f
Slide 6: Current tax
6 Overview – Norwegian petroleum taxation Current tax The calculation of current tax is set out in Exhibit 5: Exhibit 5 – Current tax USD Million CT ST USD Million CT ST Revenues 5 151 5 151 Other tax adjustments for special tax: Production cost (831) (831) Uplift (45) Other operating expenses (110)
Slide 7: Foreign currency translation effects and tax balances
7 Overview – Norwegian petroleum taxation Foreign currency translation effects Exhibit 6 - Tax balances per 31.12.2022 in Million NOK Vår Energi’s functional currency is in Norwegian kroner (NOK) while the presentation currency in the financial Amounts in MNOK 2018 2019 2020 2021 2022 statements is
Slide 8: Deferred tax and net profit interest
8 Overview – Norwegian petroleum taxation Deferred tax Net profit interest Deferred tax liabilities or assets arise when the timing of taxable income is different from the timing of income Net profit interest (NPI) applies to certain petroleum licenses (parts of Balder/Ringhorne, Breidablikk and in
Slide 9: artbox.no
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