Norfund is exempt from tax in Norway; see Section 2-30 (1e) of the Norwegian Taxation Act. Tax expenses relate to tax on the activities of regional offices abroad (corporate income tax).
As at 31.12.2024, NOK 0.4 million had been allocated for paying tax at regional offices.
| (in 1000s of NOK) | 2024 | 2023 |
|---|---|---|
| Corporation tax abroad | 712 | 474 |
In 2024 Norfund decided to reclassify tax at source on interest income from tax expenses to reduction of underlying income. The figures for 2023 have been recast in accordance with the new classification. In both 2023 and 2024 tax at source was mainly paid on interest income, and carried as a reduction of interest income
| (in 1000s of NOK) | Original taxes 2023 | Reclassified as interest income 2023 | Recast taxes 2023 |
|---|---|---|---|
| Corporation tax abroad | 11,922 | -11,448 | 474 |
Accounting principles
Norfund is exempt from tax liability for its activities in Norway, but is liable for tax in a number of foreign markets. Tax expense in the income statement comprises tax on income in our regional offices abroad which is not refunded through local tax legislation or agreements. Norfund also pays tax at source on interest from foreign investments. Tax at source on interest is deductible from interest income. This tax is largely recovered at source.
At the same time, tax at source, or deductions for refundable amounts, is recognized as interest income Other income tax, which is not recovered at source, is recognized in the income statement as a tax expense at the same time as the related income or gain. Current tax is recognized as a liability in the balance sheet under other current liabilities until it is settled.