November 6, 2019

40% tax proposed on Norway's aquaculture companies

A Norway government committee has recommended the basic tax rate to be set at 40% on aquaculture companies' profits, estimating proceeds to reach NOK 7 billion (~US$770 million; NOK 1 = US$0.11), reported Aftenposten.

The aquaculture tax is one of several measures in the Official Norwegian Report (Norges offentlige utredninger, or NOU) proposed by a special tax committee appointed by the government to review tax measures imposed on the industry.

The proposed tax will consider profitability variations due to diseases, technology and market conditions – companies must still pay taxes even if they are suffering losses.

The committee cited oil and hydropower as similar industries that benefit from the use of the country's natural resources.

However, Siv Jensen, Norway Finance Minister said the proposal is unlikely to be adopted. The NOU needs to be submitted for consultation for three months before being submitted to Norway's parliament for the spring session 2020.

Norwegian Seafood Federation has rejected the proposed tax, recommending to amend the Aquaculture Fund to provide a more stable income to coastal communities and municipalities where small and medium aquaculture farming is conducted.

The fund, which channels taxed earnings from the aquaculture industry to affected costal communities, distributed NOK 2.8 billion (~US$ 308 million) last year.

The organisation also said the industry has paid around NOK 20 billion (~US$2.2 billion) in taxes to the state and municipality last year.

-  Aftenposten Norway