After gathering updated figures from the oil companies, petroleum tax for 2024 was upwardly adjusted from NOK 352 billion to NOK 381 billion. This is equivalent to an increase of 8.2 percent. These figures represent a decrease from 2023 for which final petroleum tax amounted to NOK 465 billion.

Tax revenue from the extraction of non-renewable resources of oil and gas is deposited into the Government Pension Fund Abroad. Thus, the revenue benefits both present and future generations.

Instalment tax based on figures reported by the oil companies

Oil companies carrying out extraction and pipeline transport on the Norwegian Continental shelf pay advance tax through so-called instalment tax. The instalment tax is payable in six instalments, three in the fiscal year and three in the year following the fiscal year. Last summer, the combined assessment of instalment tax for the 2024 fiscal year amounted to NOK 352 billion. The assessment was based on figures reported by the oil companies in June 2024. The amount of the assessed instalment tax can be adjusted prior to the due date for the fourth instalment, 1 February in the year following the fiscal year. In connection with this, updated figures were obtained from the oil companies, resulting in an increase of the total instalment tax to NOK 381 billion.

Payment of instalment Tax

The oil companies have already paid NOK 179 billion for the first, second and third term in the second half of 2024. NOK 204 billion of the petroleum tax for the 2024 fiscal year remain to be paid. This amount will be paid in three instalments during the first half of 2025.

The amount, including interest, due for payment in the fourth, fifth, and sixth instalment has been assessed by the Oil Taxation Office as follows:

3 February 2025	NOK 68 billion
1 April 2025	NOK 68 billion *
2 June 2025	NOK 68 billion

* The companies have an option to make a higher payment than the assessed amount along with the fifth instalment. The actual/final amount paid may consequently be higher.

Assessment of Instalment Tax 

Oil companies carrying out extraction and pipeline transport on the Norwegian Continental shelf pay advance tax through so-called instalment tax. The instalment tax is paid in six instalments - three in the second half of the fiscal year and three in the first half of the year following the fiscal year. The assessment is based on figures (both actual and expected/estimated) reported by the oil companies. 

A revision of the instalment tax is taking place in January of the year following the fiscal year, prior to the deadline for the fourth instalment. The companies have an option to make additional payments to the assessed amounts with their second and fifth instalments. The final payment may therefore end up higher than the present assessment. 

Increase in number of instalments from 2025

The Norwegian Storting has decided, by approving the national budget for 2025, to increase the number of instalment payments from 6 to 10. Furthermore, optional extra payments will be split on three instalments instead of one. The instalment tax for 2025 and future fiscal years will fall due on 1 August, 1 September, 1 October, 1 November, 1 December, 1 February, 1 March, 1 April, 1 May and 1 June in the year following the fiscal year.

Facts About Instalment Tax 

• The Petroleum Taxation Act has a special advance tax scheme named instalment tax, according to section 7 of the Petroleum Taxation Act. 
• Instalment tax is assessed by the Oil Taxation Office for each fiscal year and is payable in six instalments, three in the fiscal year and three in the year following the fiscal year. 
• The instalment tax for each fiscal year is assessed in June/July in the fiscal year. The assessment is based on information obtained from the companies and consists of actual figures for parts of the first six months and estimates for the rest of the year. 
• The Oil Taxation Office may revise the instalment tax prior to the payment deadline of the fourth instalment. This revision is based on actual figures for most of the fiscal year. 
• The deadlines for payment of instalment tax are respectively 1 August, 1 October and 1 December in the fiscal year, and 1 February, 1 April and 1 June in the year following the fiscal year. 
• The companies have an option to make payments larger than the assessed amounts with their second and fifth instalments if they consider their original estimates to be too low. 
• Interest is calculated when there is a discrepancy between the instalment tax for the first three instalments and the final three instalments. 
• Temporary changes in the Petroleum Tax Act for the 2020 and 2021 fiscal years introduced negative instalment tax, which meant that the tax value of the deficit and unused uplift was paid in advance to the companies for these years. This scheme was discontinued from and including the 2022 fiscal year.
• The tax assessment for any given fiscal year is due on 1 December of the year following the fiscal year. There will be a reconciliation between the assessed tax/tax refund and the instalment tax. 

More information about petroleum tax