STATOIL ASA (STO)

The tax rate was somewhat reduced in the first quarter of 2007 compared with the first quarter of 2006. This was mainly due to a relatively higher impact from the uplift tax deduction on the NCS and net financial items, which are taxed at a lower rate than income from the NCS. On the other hand, these factors were mostly offset by lower effect of income generated outside the NCS.

13. INCOME TAXES

Net income before income taxes and minority interest consists of

Significant components of income tax expense were as follows

1) Includes taxes liable to Norway on income in other contries.
2) Due to changes in Norwegian tax legislation in 2004, dividend from companies, with some exceptions, will not be taxable in Norway. Consequently, NOK 1.4 billion in deferred taxes related to retained earnings in subsidiaries and affiliates have been reversed in 2004.


Significant components of deferred tax assets and liabilities were as follows

A valuation allowance has been provided as Statoil believes that available evidence creates uncertainty as to the realizability of certain deferred tax assets. Statoil will continue to assess the valuation allowance and to the extent it is determined that such allowance is no longer required, the tax benefit of the remaining net deferred tax assets will be recognized in the future.

Reconciliation of Norwegian nominal statutory tax rate of 28 per cent to effective tax rate

At the end of 2004, Statoil had tax losses carry-forwards of NOK 3.8 billion, primarily in the US and Ireland. Only a minor part of the carry-forward amounts expire before 2019.