After gathering updated figures from the oil companies, petroleum tax for 2023 was upwardly adjusted from NOK 433 billion to NOK 465 billion. This is equivalent to an increase of 7.4 percent. These figures represent almost a halving compared to the record year of 2022, but 2023 is still the next best year this far.

Tax revenue from the extraction of non-renewable resources of oil and gas is deposited into the Government Pension Fund Abroad. Thus, the revenue benefits both present and future generations.

Instalment tax based on figures reported by the oil companies

Oil companies carrying out extraction and pipeline transport on the Norwegian Continental shelf pay advance tax through so-called instalment tax. The instalment tax is payable in six instalments, three in the fiscal year and three in the year following the fiscal year. Last summer, the combined assessment of instalment tax for the 2023 fiscal year amounted to NOK 433 billion. The assessment was based on figures reported by the oil companies in June 2023. The amount of the assessed instalment tax can be adjusted prior to the due date for the fourth instalment, 1 February in the year following the fiscal year. In connection with this, updated figures were obtained from the oil companies, resulting in an increase of the total instalment tax to NOK 465 billion.

Payment of instalment Tax

The oil companies have already paid NOK 234 billion of the total amount of NOK 465 billion. The paid amount is higher than half of the total instalment tax because the companies paid an additional NOK 17 billion along with the 2^nd instalment in 2023. This implies that NOK 231 billion of the petroleum tax for the 2023 fiscal year still remain to be paid. This amount will be paid in three instalments during the first half of 2024.

The amount, including interest, due for payment in the fourth, fifth, and sixth instalment has been assessed by the Oil Taxation Office as follows:

1 February 2024	NOK 77 billion
2 April 2024	NOK 77 billion *
3 June 2024	NOK 77 billion

* The companies have an option to make a higher payment than the assessed amount along with the fifth instalment. The actual/final amount paid may consequently be higher.

Changes to the Special Tax System 

New rules pertaining to petroleum taxation were decided by the Storting on 8 June 2022 and approved by the King in Council on 17 June 2022. The changes in the Petroleum Taxation Act consist of a shift of the special tax for petroleum production into a cash flow tax that grants immediate deductions for new investments. 

The special rules in the petroleum tax regime that applied to uplift and to the refund of exploration and termination costs, have been discontinued with effect from the fiscal year of 2022. Instead, the companies receive payment of the special tax value of their deficit in connection with the tax assessment.

The changes came into effect from and including the fiscal year of 2022, while the temporary rules (see information on instalment tax) continue to apply to investments under section 11 of the Petroleum Taxation Act (also including deductions of uplift in connection with investments that follow these rules). 

Assessment of Instalment Tax 

Oil companies carrying out extraction and pipeline transport on the Norwegian Continental shelf pay advance tax through so-called instalment tax. The instalment tax is paid in six instalments - three in the second half of the fiscal year and three in the first half of the year following the fiscal year. The assessment is based on figures (both actual and expected/estimated) reported by the oil companies. 

A revision of the instalment tax is taking place in January of the year following the fiscal year, prior to the deadline for the fourth instalment. The companies have an option to make additional payments to the assessed amounts with their second and fifth instalments. The final payment may therefore end up higher than the present assessment. 

Facts About Instalment Tax 

• The Petroleum Taxation Act has a special advance tax scheme named instalment tax, according to section 7 of the Petroleum Taxation Act. 

• Instalment tax is assessed by the Oil Taxation Office for each fiscal year and is payable in six instalments, three in the fiscal year and three in the year following the fiscal year. 

• The instalment tax for each fiscal year is assessed in June/July in the fiscal year. The assessment is based on information obtained from the companies and consists of actual figures for parts of the first six months and estimates for the rest of the year. 

• The Oil Taxation Office may revise the instalment tax prior to the payment deadline of the fourth instalment. This revision is based on actual figures for most of the fiscal year. 

• The deadlines for payment of instalment tax are respectively 1 August, 1 October and 1 December in the fiscal year, and 1 February, 1 April and 1 June in the year following the fiscal year. 

• The companies have an option to make payments larger than the assessed amounts with their second and fifth instalments if they consider their original estimates to be too low. 

• Interest is calculated when there is a discrepancy between the instalment tax for the first three instalments and the final three instalments. 

• Temporary changes in the Petroleum Tax Act for the 2020 and 2021 fiscal years introduced negative instalment tax, which meant that the tax value of the deficit and unused uplift was paid in advance to the companies for these years. This scheme was discontinued from and including the 2022 fiscal year.

• The tax assessment for any given fiscal year is due on 1 December of the year following the fiscal year. There will be a reconciliation between the assessed tax/tax refund and the instalment tax. 

More information about petroleum tax