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 2016
In 2016, Norfund’s investees paid NOK 10.9 billion in taxes and fees. Approximately half of this amount was corporate income taxes. Enterprises operating in Africa paid 6.1 billion NOK to the governments, whereas enterprises in Asia transferred 3 billion NOK in taxes and fees. Our portfolio companies in Latin America paid 1.8 billion in taxes in 2016.
| Country | Taxes paid, NOK |
|---|---|
| Angola | 130 000 000 |
| Bangladesh | 904 000 000 |
| Cambodia | 380 000 000 |
| China | 80 000 000 |
| Costa Rica | 43 000 000 |
| Ecuador | 33 000 000 |
| El Salvador | 170 000 000 |
| Ethiopia | 97 000 000 |
| Ghana | 297 000 000 |
| Guatemala | 65 000 000 |
| Honduras | 214 000 000 |
| India | 352 000 000 |
| Kenya | 1 551 000 000 |
| Laos | 135 000 000 |
| Mozambique | 30 000 000 |
| Nicaragua | 414 000 000 |
| Nigeria | 191 000 000 |
| Other, Africa* | 1 288 000 000 |
| Other, America* | 726 000 000 |
| Other, Asia* | 1 065 000 000 |
| Other, Global* | 13 000 000 |
| Panama | 20 000 000 |
| Peru | 153 000 000 |
| Rwanda | 71 000 000 |
| South Africa | 1 487 000 000 |
| Tanzania | 786 000 000 |
| Thailand | 43 000 000 |
| Uganda | 118 000 000 |
| Zambia | 63 000 000 |
| Total | 10 919 000 000 |
*This includes data from countries with less than 4 reporting enterprises as well as companies with operations in several countries in the region.
