Tax revenues
By paying taxes and fees in the countries where they operate, Norfund’s portfolio companies contribute to making it possible for governments to sustainably fund basic welfare for their citizens.
By investing in sustainable businesses, Norfund helps to expand the formal sector in developing countries. More formal quality jobs leads to a broader tax base, and stronger institutions needed for long-term development.
Impact in 2025
taxes paid in 2025
taxes paid in total
Development rationale
Profitable companies pay taxes to governments in the countries in which they operate. Taxes and fees are paid both by Norfund’s portfolio companies and by the companies in their value chains. Company growth can increase the demand for supplies, which in turn can increase tax revenues generated by the suppliers. In this way the company growth contributes to tax generation beyond the tax collected in the company.
Tax revenues provide governments with essential resources that can be spent on infrastructure and public services, such as health services, education and protection for its citizens.
Results in 2025
In 2025, an amount equivalent to NOK 41 billion was paid in taxes and fees by the companies in which Norfund is invested, both directly and through funds. This corresponds to 71 % of the total Norwegian development aid in 2025.
46 % of the total taxes were paid as corporate income tax and 54 % were paid as other transfers, such as sales taxes, withholding taxes, net VAT, royalties, license fees and social security payments.
From the end of 2024 to the end of 2025, total taxes and fees paid by companies with two consecutive years of reporting increased by NOK 4.2 billion on a net basis, reflecting both increases and declines across companies.
Tax revenues by region
Tax on the Norfund Conference
