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 21.94 NOK per 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 12 per kilo NOx for the offshore industry (emission connected to oil and gas extraction) and NOK 6 for the other sectors (shipping, fishing, land-based industry, aviation, district heating etc.).
The tax exemption is dependent on that the NOx Agreement 2018-2025 is approved by ESA.
Companies that would like to join the NOx Fund need to fill out an online application form and upload a signed copy 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 join the NOx Fund through a Norwegian representative. The NOx Fund also encourages the foreign company to join the NOx Fund.
A foreign company must be affiliated to the NOx Fund to be able to receive support to NOx reducing measures.
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 web 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. 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 web 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 web 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 NOx emission
Emission from foreign owned companies shall be reported to the NOx Fund by the Norwegian representative.
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.