Other regulationsNorway has specifi

Other regulations
Norway has specific legislation (in the Petroleum Tax Act) to deal with the pricing of
petroleum for tax purposes. Taxation of income from the sale of crude oil produced
on the Norwegian Continental Shelf is based on a so-called ‘norm price’, which shall
be equivalent to the price at which it could be sold between unrelated parties in a
free market (i.e. an arm’s-length price). When establishing the norm price, a number
of factors shall be taken into account, including ‘the realised and quoted prices for
petroleum of the same or a corresponding type with necessary adjustments for quality
variations, transport costs, etc. to the North Sea area or other possible markets,
delivery time, time allowed for payment and other terms’.
The price norm is decided individually for each field by a separate governmental
board (Norm Price Board). The taxpayer will be taxed based on the relevant norm
price irrespective of the actual sales price. The norm price is used both for internal and
external transactions. So far, the norm price has been set only for crude oil but may
also be set for natural gas.