Resource rent tax on land-based wind power
19th of December, the Norwegian Parliament adopted the introduction of respurce rent tax on land-based wind power, with effect from the fiscal year 2024. The final rules have become more favourable than what the Government had first set up.
The decision is based on the resourcerent tax rules for hydropower, with some adjustments. The resource rent tax is thus designed as a cash flow tax with an immediate deduction for investment costs. For a more detailed description of the original bill – see our previous article here.
The resource rent tax includes land-based wind power plants that consist of more than five turbines, or that have a total installed capacity of 1 MW or higher. This corresponds to the current limit for license obligations pursuant to Section 3-1 of the Energy Act.
The effective tax rate is now set at 25 per cent, compared to 40 per cent in the original proposal.
Here you can read more about the practical significance of the new rules, history and purpose behind the resource rent tax, published in Revisjon og Regnskap No. 1 2024.
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