Increasing tax revenues
Profitable companies pay taxes to governments. This increases the tax base in the countries in which the companies are operating, enabling governments to spend more on infrastructure and public services.
Every year, Norfund collects data on key development effects from our direct and indirect investees. The enterprises are asked to report the sum of corporate income taxes transferred to the government during the last calendar year. They also report additional forms of transfers, such as sales taxes, withholding taxes, net VAT, royalties and licence fees.
Taxes paid in 2017
In 2017, Norfund’s investees paid NOK 9.3 billion in taxes and fees. Approximately half of this amount was corporate income taxes. Enterprises operating in Africa paid NOK 5.6 billion in taxes and fees, whereas enterprises in Asia transferred NOK 2.4 billion. Our portfolio companies in Latin America paid 1.2 billion in taxes in 2017.
| Country | Taxes paid, NOK |
|---|---|
| Angola | 34 000 000 |
| Bangladesh | 1 370 000 000 |
| Bolivia | 146 000 000 |
| Cambodia | 362 000 000 |
| Costa Rica | 57 000 000 |
| Ecuador | 27 000 000 |
| El Salvador | 150 000 000 |
| Ethiopia | 74 000 000 |
| Ghana | 408 000 000 |
| Guatemala | 47 000 000 |
| Honduras | 163 000 000 |
| India | 121 000 000 |
| Kenya | 1 005 000 000 |
| Laos | 111 000 000 |
| Mozambique | 26 000 000 |
| Myanmar | 1 000 000 |
| Nicaragua | 361 000 000 |
| Nigeria | 62 000 000 |
| Other* | 11 000 000 |
| Other, Africa* | 2 443 000 000 |
| Other, America* | 113 000 000 |
| Other, Asia* | 487 000 000 |
| Panama | 14 000 000 |
| Peru | 75 000 000 |
| Rwanda | 56 000 000 |
| South Africa | 135 000 000 |
| South Sudan | 6 000 000 |
| Tanzania | 924 000 000 |
| Thailand | 50 000 000 |
| Uganda | 199 000 000 |
| Zambia | 214 000 000 |
| Total | 9 252 000 000 |
*This includes data from countries with less than 4 reporting enterprises as well as companies with operations in several countries in the region.
Principles for Responsible Tax
Successful businesses will contribute to increased government tax revenues which allow the government to provide services such as education, health care and public infrastructure. A responsible tax policy is thereby a fundament for Norfund´s operations. Our tax policy is based on the principles stated in the Norfund Act, Norfund's statutes and EDFI's principles for responsible tax in developping countries.
