Tax policy

About Investinor and our tax policy

Investinor is an investment company owned on behalf of the Norwegian state by the Ministry of Trade, Industry and Fisheries. The company invests risk capital in some of the most promising companies in its market. Investinor is able to invest directly in individual companies, as well as in seed and venture funds. It can enter into matching investments together with private investors in seed and venture phase companies, and can make pre-seed investments in funds.

All of our investments are made on the basis of thorough due diligence of the companies, funds and fund managers involved. Investinor operates in the field of direct investment in companies that conduct their activities either in Norway or overseas. In the case of Investinor’s indirect investments made under its fund mandate, it is possible that a proportion of the companies involved may be domiciled in other countries without a requirement that they conduct their activities in Norway. Investinor does not invest in companies or funds that are in breach of the main principles that we regard as the basis for our area of tax practice. In situations where we identify indications of breach of our principles, we will, in collaboration with the company involved and our co-investors or the fund/fund manager, work towards establishing practices that harmonise with our policy.

Investinor’s tax policy is founded on three basic principles:

1. Sustainability

Tax revenues are a prerequisite for sustainable development. Profitable companies generate increased tax revenues, which in turn contribute to the financing of the development of individual states. As part of Investinor’s role in society to develop the businesses of tomorrow, tax revenues constitute a key ripple effect. Our success makes an indirect contribution to the funding of key institutions in health, welfare and education, as well as providing financial capital and infrastructure.

2. Origin and transparency

Our portfolio companies and funds shall pay tax to the countries in which they generate their wealth. Investinor’s investment portfolio comprises direct and indirect investments in several companies with global presence. Regardless of where their activities are conducted, all of our companies and funds shall pay tax to the host country in which they generate their wealth. Moreover, it is expected that all of our companies and funds shall conduct themselves with transparency in their dealings with their host country’s tax authorities. This includes the provision of timely and correct information as the basis for tax assessment. It is expected that our companies and funds shall adhere to the tax legislation that applies in the countries in which they conduct their activities.

Investinor shall, by means of active ownership, ensure that our companies are operated responsibly and professionally. This entails promoting an increased awareness of tax legislation and compliance with the regulations that apply to the companies concerned. Regarding those companies in which Investinor has invested indirectly in the form of fund investments, Investinor will, by means of contractual arrangements with fund managers, ensure that the investments made by the fund in question are in compliance with our tax policy.

3. Integrity and fairness

Investinor does not participate in artificial schemes designed to reduce state tax revenues.

Investinor shall not knowingly participate in harmful tax practices. In our role as a minority investor, we shall to the best of our ability ensure that our companies and funds refrain from engaging in harmful or potentially harmful tax behaviours. At the same time, we consider it appropriate that Investinor’s portfolio companies and funds make the best use of any tax incentives available to them.

Furthermore, we encourage our portfolio companies and funds to:

   a) Adhere to tax legislation

Companies and funds must comply with all prevailing legislative Acts and regulations in the countries in which they conduct their business.

   b) Refrain from participation in the undermining of a country’s tax basis or taxable surplus transfers:

Companies and funds must not utilize artificial schemes such as internal pricing as a means of transferring taxable profits from the countries in which they conduct their business.

   c) Refrain from participation in aggressive tax planning:

Companies and funds in which Investinor invests should refrain from participation in any form of aggressive tax planning that draws funds away from local tax bases.

Remarks specific to Investinor

Investinor invests primarily in securities that are assessed according to the exemption method under the current Norwegian tax model. This means that our earnings are for the most part non-taxable. In all other respects, Investinor pays Norwegian taxes and duties in compliance with prevailing regulations, and encourages all of our business partners to do likewise.

Amendments to this policy

This policy shall be updated as and when necessary, and will be reviewed by the Board every second year. Any amendments to this policy must be approved by the Board.