OLSO: The Norwegian parliament has today formally approved the state budget for 2018. In the budget, the corporate tax rate in Norway has been reduced from 24% to 23%.
The change in the tax rate will reduce the tax expense to be incurred by Atea in its Norwegian subsidiaries from 2018.
At the same time, the change in the tax rate reduces the value of Atea’s tax loss carryforwards in Norway, which are recognized in the balance sheet as deferred tax assets.
The reduction in the tax rate will reduce the value of Atea’s deferred tax assets by approximately NOK 21 million. This will result in a one time tax expense of approximately NOK 21 million for Atea in Q4 2017.
This one-time tax expense does not reflect incremental taxes owed by Atea in Norway. Rather it reflects the decline in the value of Atea’s tax loss carryforwards due to the reduction of the corporate tax rate from 24% to 23%.
