Companies subject to NOx tax
The tax liability encompasses emissions of nitrogen oxides (NOx) in energy production from:
- Propulsion machinery with a total installed capacity of over 750 kW
- Motors, boilers and turbines with a total installed capacity of more than 10 MW
- Flares on offshore installations and facilities on land
Companies that join the Environmental Agreement on NOx are entitled to a tax exemption from the tax of 21.59 NOK/kg NOx to the state from the date that the enterprise affiliate to the Environmental Agreement. From the same date, the enterprise will have a payment obligation vis a vis the NOx Fund. The rates of payment to the NOx Fund are NOK 11 per kilo NOx for the offshore industry (emission connected to oil and gas extraction) and NOK 4 for the other sectors (shipping, fishing, land-based industry, aviation, district heating etc.).
Emissions from movable rigs in connection with transfers between assignments and exploration drilling shall be reported under shipping at a rate of NOK 4.
Companies that would like to join the NOx Fund need to fill out an online application form and upload a signed copy of the Norwegian version of the Participant Agreement, as well as an authorisation or a statement documenting that the signatory has the authority to legally bind the enterprise (e.g. a company certificate).
Foreign owned companies must also join the Agreement through a Norwegian representative. Both the Norwegian representative and the foreign company have to join the NOx Fund separately and submit the signed Participant Agreement to the Fund.
The signed copy of the Participant Agreement and the company certificate can alternatively be forwarded to the NOx Fund, but the application will not be processed until these are received. Please submit the documents to email@example.com or by mail to Næringslivets NOx-fond, Postboks 5250 Majorstuen, NO-0303 Oslo, Norway.
NOx Agreement 2018-2025
To be entitled to a tax exemption from 2018 all companies must join the new NOx Agreement for the period 2018-2025. An electronic application form will be developed in order for companies to join the new Agreement. The NOx Fund will inform companies affiliated to the Environmental Agreement 2011-2017 when this is in place, probably during the autumn of 2017.
The tax exemption is dependent on that the NOx Agreement 2018-2025 is approved by ESA.
Participating objects i.e. ships, rigs etc.
If the company has any objects (ships, rigs etc.), each single object needs to be registered in the NOx Fund through the NOx Fund's portal. An object must be registered in the NOx Fund at the latest by the due date for reporting on the 18th, to report emissions for the quarter that it shall be reported for. However, an object may at earliest start reporting emission from the date of affiliation for the enterprise.
In the Fund's web portal an object's registration date, and hence the date the object may start to report emission from, will automatically be generated when the object is registered by the company. The tax exemption is valid from this date. Emission from an object prior to this date must be reported with full tax to the Norwegian Tax Administration.
It is the company's responsibility to keep all information about its registered objects updated.
All companies are encouraged to register any ships with the possibility to operate in Norwegian waters. These ships can be flagged as "inactive" in the Fund's portal when they are not operating in waters subject to Norwegian NOx tax. Only emission subject to Norwegian NOx tax shall be reported to the Fund.
Participant Certificate Proof
The company that joins the Fund will in the NOx Fund's portal receive a Participant Certificate as proof that they are entitled to a tax exemption from the Norwegian NOx tax, and may obtain support for NOx reducing measures from the NOx Fund.
Reporting of emission
Participant enterprises shall report NOx emissions each quarter to the NOx Fund through the NOx Fund's portal for reporting. Based on the reported emissions the enterprises will receive an invoice.
According to the Participant Agreement affiliated enterprises shall develop a measure plan identifying possible NOx reducing measures. The purpose of the measure plan is to identify profitable measures the enterprise can implement on its own accord, and cost effective NOx reducing measures that are dependent of support from the NOx Fund in order to be realized.
Only applications regarding specific measures should be submitted to the NOx Fund. The measure plan per se is meant to be an internal document and shall be kept at the enterprise. The NOx Fund is well aware that enterprises may not have any profitable or current cost effective measures. Nevertheless, the enterprise shall undertake a review to reveal potential NOx reducing measures.
Implementation of measures
The Business Sector’s NOx Fund is a cooperative effort where participant enterprises may apply for financial support for NOx reducing measures. The Fund’s success is dependent on that sufficient NOx reducing measures are being implemented, ensuring that the emission obligations vis-à-vis the Environmental Agreement are being met. Although several measures have been implemented already, all new measures that will be implemented will serve as important contributions to ensure that the reduction obligations vis-à-vis the Environmental Agreement are being met.
A total of 947 companies are affiliated to the Environmental Agreement on NOx 2011-2017 as of 1 September 2017.