New Norwegian Shipping Tax Provisions

Marianne Iversen, Wikborg, Rein & Co., Oslo

As a part of the Norwegian tax reform of 1992, the possibilities to defer income tax were considerably restricted – also for shipping companies. The maximum depreciation rate for ships was reduced from 25 percent to 20 percent (declining balance method), the capital gains taxation was made more effective, etc. Until now, many of the Norwegian shipping companies have had losses to carry forward, implying that the tax reform provisions have not had any considerable impact on them. As these losses, to a great extent, have been utilized, the tax situation of shipping companies could change dramatically in future years without amendments to the existing tax provisions. On this background, and also taking into consideration the new tonnage tax regime introduced in the Netherlands, the tax conditions of the Norwegian shipping companies compared to shipping companies of other countries have been heavily debated.

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