The Norwegian parliament (Stortinget) has formally approved the state budget for 2019. In the budget, the corporate tax rate in Norway has been reduced from 23% to 22%.
The change in the tax rate will reduce the tax expense to be incurred by Atea in its Norwegian subsidiaries from 2019.
At the same time, the change in the tax rate reduces the value of Atea's tax -loss carryforwards in Norway, which are recognized in the balance sheet as deferred tax assets.
As of 31/12/2017, Atea had NOK 472 million in deferred tax assets in its Norwegian operations.
The reduction in the tax rate will reduce the value of Atea's deferred tax assets by approximately NOK 19 million. This will result in a one-time tax expense of approximately NOK 19 million for Atea in Q4 2018.
This one-time tax expense does not reflect incremental taxes owed by Atea in Norway. Rather it reflects the decline in the value of Atea's tax loss carryforwards (deferred tax assets) due to the reduction of the corporate tax rate from 23% to 22%.
Atea's tax expense will be lowered in future years as a result of the change in the tax rate.
For further information, please contact:
Robert Giori, CFO Atea ASA, mobile (+47) 934 09 188
Atea is the leading supplier of IT infrastructure and system integration in the Nordic and Baltic regions with 7,200 employees. Atea is present in 87 cities in Norway, Sweden, Denmark, Finland, Lithuania, Latvia and Estonia. Atea delivers IT products from leading vendors and assists its customers with specialist competencies within IT infrastructure services. Atea had revenue of approximately NOK 32 billion in 2017 and is listed on Oslo Stock Exchange. www.atea.com