Note 11 - Taxes

Consolidated

(Amounts in USD 1,000)

2016

2015

Temporary differences

Deferred tax

Participation in limited liability companies

-2,701

-2,701

Operating assets

-30,927

-34,497

Pension funds/obligations

-1,493

-2,601

Other long-term differences

6,517

4,605

Net temporary differences as of December 31

-28,604

-35,194

Tax loss carried forward

-31,091

-31,091

Basis for deferred tax (tax asset)

-59,695

-66,286

Deferred tax (tax asset) Norway

-1,169

-8,137

Deferred tax (tax asset) Holland

-3,075

-3,415

Deferred tax (tax asset) Germany

-7,223

-115

Deferred tax (tax asset)

-11,467

-11,668

Deferred tax asset recognized in statement of financial position as of December 31

-11,467

-11,668

There are no tax assets in the parent company.

Deferred tax assets are recognized as intangible assets as it is probable through prospective earnings that it can be utilized.

The Company is subject to taxes in several jurisdictions, where significant judgment is required in calculating the tax provision for the Company. There are several transactions for which the ultimate tax cost is uncertain and for which the Company makes provisions based on an assessment of internal estimates, tax treaties and tax regulations in countries of operation, and appropriate external advice. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such difference will impact the tax charge in the period in which the outcome is determined.

The Company decided to exit the Norwegian Tonnage Tax regime effective 1 January 2015. Formally the decision was made as part of filing of the 2015 corporate tax return. The decision was made to ensure that the Company is fully capable of complying with current legislation. Additionally, exiting the Norwegian Tonnage Tax regime will provide more flexibility to the Company. The Norwegian Tonnage tax Regime is a ring-fence regime which is not flexible with regards to which assets and activities that can be operated under the regime.

Tonnage tax in subsidiaries, as of December 31

(Amounts in USD 1,000)

2016

2015

Tonnage tax regime in subsidiaries, as of January 1

5

22

Tax charge

-4

Paid

-16

Effect of exchange rate differences

4

Total tonnage tax in subsidiaries, as of December 31

5

5

12/31/2016

Total tax liabilities

Consolidated

(Amounts in USD 1,000)

Tonnage tax regime

Other tax regime

Total tax liabilities

Long term tax liabilities falling due after 1 year

-

1,297

1,297

Payable taxes falling due within 1 year

5

2,863

2,868

Tax liabilities

5

4,160

4,165

Tax expense

2016

(Amounts in USD 1,000)

Tonnage tax regime

Other tax regime

Total tax expense

Taxes payable

-4

842

838

Change in deferred tax/deferred tax asset

-

-212

-212

Total

-4

629

626

12/21/2015

Total tax liabilities

CONSOLIDATED

(Amounts in USD 1,000)

Tonnage tax regime

Other tax regime

Total tax expense

Long term tax liabilities falling due after 1 year

-

5,483

5,483

Payable taxes falling due within 1 year

5

3,491

3,496

Tax liabilities

5

8,974

8,979

Tax expense

(Amounts in USD 1,000)

Tonnage tax regime

Other tax regime

Total tax expense

Taxes payable

-4

-4,506

-4,510

Change in deferred tax/deferred tax asset

-

-227

-227

Total

-4

-4,734

-4,737

Total tax liabilities

PARENT COMPANY

(Amounts in USD 1,000)

12/31/2016

12/31/2015

Long term tax liabilities falling due after 1 year

-

4,258

Payable taxes falling due within 1 year

-292

-150

Tax liabilities

-292

4,108

Total tax liabilities

PARENT COMPANY

Tax expense

2016

2015

Taxes payable

-

-

Total

-

-

Board Of Directors

Financial Statements

Notes