Double Taxation Avoidance Agreements in Norway

Double Taxation Avoidance Agreements in Norway

Updated on Monday 17th October 2016

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The taxes applicable on profits and dividends paid to non-residents located outside EEA that Norway levies are:

  • - the corporate tax -  28%;
  • - a 25% withholding tax applicable to the dividends paid to the countries outside EEA.

Even though there are no withholding taxes on interests and royalties paid to nonresidents it is not very appealing to open a business here knowing that the incomes may be taxed twice: once in the country of origin and once in Norway. This is the reason Norway has a vast network of double tax treaties signed and many other drafts waiting to be ratified. 


Double tax treaties concluded by Norway


So far Norway has signed double tax treaties with the following countries: Albania, Argentina, Azerbaijan, Australia, Austria, Bangladesh, Barbados, Belgium, Benin, Bosnia and Herzegovina, Brazil, Bulgaria, Cayman Island, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Faeroe Islands, Finland, France, Gambia, Georgia, Germany, Greece, Greenland, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Kazakhstan, Kenya, Latvia, Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Malta, Morocco, Mexico, Nepal, Netherlands, Netherlands Antilles, New Zealand, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, Senegal, Serbia, Sierra Leone, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Kingdom, United States of America, Venezuela, Vietnam, Zambia, Zimbabwe.

Our attorneys in Norway are specialists in taxation matters and can advise local and foreign investors in several tax issues.

How can foreign investors benefit from the provisions of these agreements?

There are two methods through the foreign investors can beneficiate from the provisions of the treaties: through exemption, when the profits are not taxed at all in Norway and the taxes are paid in the country of origin or through credit, when the profits are taxed in Norway and a credit is granted to that entity in the country of origin in order to cover that.
 
The withholding taxes on dividends are exempt or minimized by the double tax treaties’ provisions depending on the degree of participation in the Norwegian country. The higher participation and the longer period of time the higher exemptions are granted.

Before beneficiating from these provisions, the tax payers must deliver a proof that the taxes are already paid in the country of origin, such as a tax certificate from the foreign competent authority. Also each treaty has a special section at the end where are stipulated the conditions of beneficiating from tax exchange information between the parties.

For more information about the provisions of the double tax agreements concluded by Norway and how you can take advantage of them, feel free to contact our law firm in Norway. Moreover, our experienced legal advisers can also resolve any tax issue that may arise in a company's activities. We are specialized in resolving disputes and handling litigations.
 

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