SalMar ASA

SalMar - Resource rent tax on aquaculture in Norway

Today, with a narrow majority, the Norwegian Parliament has passed an additional

resource rent tax on aquaculture in Norway, with a tax rate of 25%. This is in

addition to the regular corporate tax and means that the marginal tax rate on

aquaculture will increase by over 100%, from 22% to 47%. The new tax will apply

retroactively from January 1, 2023, and is being implemented without the

involvement of stakeholders and broad political consensus that traditionally

characterize major changes in the tax system and framework for Norwegian

businesses.

SalMar has consistently warned against the new tax, which is based on the

incorrect assumption that aquaculture food production is a location-bound

resource rent industry that consistently generates extraordinary returns

disproportionate to the risk involved. Today's tax decision will have a

significant distorting effect. The high tax level and the unfavorable design of

the new tax will withdraw a substantial portion of investment capital from the

industry. This will come at the expense of investments, innovation, and

employment in an industry where coastal communities have ensured that Norway has

become a global leader. The tax will affect the entire value chain, especially

the land-based industry and suppliers. The lack of proper assessment and the

remaining uncertainties in the decision-making process only amplify the

uncertainty.

Given these circumstances, SalMar will continue to actively collaborate with

industry organizations to describe the actual situation and the challenges the

industry is currently facing. Through close and fact-based dialogue with

authorities and decision-makers, we look forward to promptly restoring a tax

system and tax level that is appropriate for Norwegian aquaculture.

The aquaculture industry has clearly and openly been willing to contribute more

in terms of taxation. However, it must be at a sustainable level with a model

that is tailored to the industry.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

AI Terminal