Mining 2025

NORWAY Law and Practice Contributed by: Mona Søyland, Øystein Nore Nyhus, Halvor Klingenberg and Fredrik Haberer Anfinsen, Simonsen Vogt Wiig

Royalties Unlike many jurisdictions, Norway does not impose royalties on mining operations (see 1.7 Mining: Security of Tenure for landowner’s fee). Distinction Between National and Foreign Investors Norway’s tax legislation does not generally dis - tinguish between national and foreign investors in terms of taxation. Foreign companies operat - ing in Norway are taxed on income derived from their operations within the country. However, double taxation agreements (DTAs) between Norway and other countries may modify the tax treatment of foreign investors, especially regard - ing withholding taxes on dividends, interest, and royalties paid to foreign entities. 4.2 Tax Incentives for Mining Investors and Projects Norway provides several tax incentives aimed at encouraging investments, but there are no spe - cific tax incentives for the mining sector. Tax Deductions and Depreciation Investors can benefit from accelerated deprecia - tion on mining equipment and infrastructure. The general depreciation rate for machinery used in mining is set at 20%, allowing companies to reduce taxable income during the early years of investment. Unutilised tax losses may be carried forward indefinitely. R&D Tax Incentive Scheme Norway offers a R&D tax incentive scheme through the SkatteFUNN programme, which also applies to eligible projects in the mining sector. Companies can claim up to 19% of qualifying R&D expenses, including innovative exploration technologies.

Regional Incentives Mining projects in certain regions such as in northern Norway may benefit from reduced employer contributions, as the region qualifies for lower social security tax rates under govern - ment incentives to promote economic develop - ment. Pre-Registration for VAT and VAT Deduction In Norway, mature mining companies can apply for pre-registration for VAT, allowing them to reclaim input VAT on goods and services acquired for preparatory activities before reach - ing the VAT registration threshold of NOK50,000. This ensures that costs related to exploration, feasibility studies, and initial project set-up do not carry an irrecoverable VAT burden. Pre-registration is contingent on certain criteria such as demonstrating a clear intent to engage in taxable mining activities and as a general rule there should be a clear probability that the busi - ness will start as planned. Once approved, busi - nesses can deduct input VAT on eligible expens - es incurred during this pre-operational phase. This system supports development investments by reducing upfront costs and promoting cash flow efficiency. Tax Stabilisation Agreements Unlike some jurisdictions, Norway does not offer tax stabilisation agreements in the mining sector. 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects Capital Gains Tax Capital gains derived from the sale of mining projects are subject to the standard corporate income tax rate of 22%. Gains are calculated based on the difference between the sale price and the tax book value of the assets.

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