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Norway plans resource tax on onshore wind farms
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OSLO (Reuters) – Norway will introduce a resource rent tax on onshore wind power from 2024, although existing facilities will get “generous transitional arrangements”, the government said on Friday.
OSLO (Reuters) – Norway will introduce a resource rent tax on onshore wind power from 2024, although existing facilities will get “generous transitional arrangements”, the government said on Friday.
“The proposal will ensure that a larger share of the value added in the wind power industry will accrue to society as a whole. Host municipalities will be better off under the proposal,” the government said in a statement.
The government is proposing an effective tax rate of 35%, structured as a cash flow tax with an immediate deduction of investment costs.
“At least half of the revenues will accrue to municipalities. This is achieved through the production tax, supplemented by an additional appropriation in years of high resource rent,” it added.
(Reporting by Terje Solsvik, editing by Gwladys Fouche)
A resource rent tax is a tax imposed on the profits generated from the extraction of natural resources, ensuring that a portion of the profits is returned to the public.
Onshore wind farms are facilities that generate electricity by harnessing wind energy using turbines located on land.
Transitional arrangements are temporary measures put in place to ease the implementation of new policies or regulations, allowing existing operations to adapt without immediate penalties.
A cash flow tax is a tax system that allows businesses to deduct their investment costs immediately, taxing only the cash flow generated from operations.
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