After hearing, the Norwegian government settled a new proposal for ground rent tax. As a result of the consensus in the Parliament, further changes are now being made.
Changes in the draft law after the consensus in the Parliament
- The effective tax rate is set to 25%.
- For new power plants, a payment scheme for negative ground rent income is introduced when they are put into operation, and the Tax Administration has conducted a review of the determined tax. In the meantime, negative ground rent income is carried forward with interest. The introduction requires the approval of this scheme by the EEA.
- For existing power plants, the entry value receives a 40% markup compared to the government`s original proposal. However, the entry value cannot be higher than 85% of the historical cost of investments. The entry value is written off linearly against the ground rent tax over 5 years.
- The settlement does not entail changes in the production levy.
