Tax policy

Published: 12.12.2020

In accordance with owner expectations as set out in the recent Norwegian Government White Paper on State Ownership (Meld. St. 8 2019–2020), Investinor has prepared a corporate tax behaviour policy. The policy is adopted by the Board and communicated to all our portfolio companies as part of our contribution towards development of the businesses of tomorrow.

About Investinor and our tax policy

Investinor is an investment company owned on behalf of the state by the Norwegian Ministry of Trade, Industry and Fisheries. We invest risk capital in Norwegian growth companies and, by means of active ownership, assist these companies in becoming leading enterprises in their respective sectors.

All our investments are made on the basis of thorough due diligence processes. Where we identify indications of non-conformance with our principles, we will, in collaboration with the company and our co-investors, 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.

  1. Origin and transparency

Our portfolio companies shall pay tax to the countries in which they generate their wealth.

Our investment portfolio includes many companies with a global presence. Regardless of where their business is located, all of our companies pay tax to the host country in which they generate their wealth. Moreover, it is expected that all our companies conduct themselves in a transparent manner 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 shall adhere to both the letter and intention of the tax legislation in the countries in which they conduct their business.

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.

  1. 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. As a minority investor, we shall to the best of our ability ensure that our companies refrain from engaging in harmful or potentially harmful tax behaviours. At the same time, we consider it appropriate that Investinor’s portfolio companies make the best use of any tax incentives available to them.

Furthermore, we encourage our portfolio companies to:

  1.    a) Comply with tax legislation

Our companies must comply with all legislative Acts and statutory regulations in the countries in which they conduct their business.

  1.    b) Refrain from profit shifting and eroding a country’s tax base

Our companies must not utilise artificial schemes such as internal pricing as a means of moving taxable profits from the countries in which they conduct their business.

  1.    c) Refrain from participation in aggressive tax planning

The companies 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.

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