“The machine tax”

At the end of November 2017, a budget settlement was presented between the government parties and the KrF and the V where, among other things, the part of the property tax often called "the machine tax", has been removed. This is very good news for the data center industry as this eliminates the uncertainty associated with potentially large tax claims.

The Treasury Department sent this summer a hearing proposal to change the rules on property taxes on working machines (machine tax). The government estimates the income loss to at least 1.2 billion NOK for the municipalities. It has now been agreed to remove “the machine tax”. The municipalities that are affected by the tax-cut are promised compensations. The budget agreement removes any doubts when municipalities by this do not have the opportunity to use the property tax to deduct taxes on data equipment in use.

Kjetil Thorvik Brun in IKT Norge says "We have received a great victory in the state budget now when the machine tax is removed." The machine tax, following the pass on the reduction of the electrical charge for data centers, has been the largest obstacle to growth, major new establishments and investments in the data center industry”.

Kristin Skogen Lund in NHO believes it is very gratifying that the four bourgeois parties have removed the machine tax. According to plan, the tax will be gradually removed over a seven-year period. “The most important thing for Norway is to create more jobs - it is necessary to ensure the welfare. Removing the machine tax is one of many answers to this challenge. This unpredictable tax has been an obstacle to new establishments and a major drawback for established businesses", she says.

(Source tu.no)