Cryptocurrency mining and electrical power tax

The Norwegian Tax Administration proposes removal of tax concession.

The Norwegian Tax Administration has been commissioned by the Ministry of Finance to assess whether the current electrical power tax exemption for power delivered to data centres may be delimited against cryptocurrency mining. In a letter to the Ministry of Finance of 31 October 2018, the Administration concludes that a delimitation according to the "cryptocurrency mining" criterion is feasible, "both regulatory and tax-technically". The tax exemption for data centres with an offtake of above 0.5 MW will be continued.

The Norwegian Tax Administration recommends that the delimitation apply to all cryptocurrency mining, i.e. regardless of whether it is above or below the current offtake limit of 0.5 MW. For businesses that operate combination data centres, i.e. cryptocurrency storage and mining, the delimitation of the exemption will include all power delivered to the collected business.

The Norwegian Tax Administration assumes that a delimitation of the power tax exemption for data centre operations against cryptocurrency mining activities may be notified to ESA using a simplified notification form.

The matter will now be handled by the Ministry of Finance, which will consider possible follow-up in the form of amended wording of the proposal for the Norwegian Parliament's annual tax rate resolution, as well as amendment of the Excise Tax Regulations.

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