Double Tax Treaty between Luxembourg & Norway

CONVENTION 

BETWEEN THE GRAND DUCHY OF LUXEMBOURG AND THE KINGDOM OF NORWAY FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

 

His Royal Highness the Grand Duke of Luxembourg and The Government of the Kingdom of Norway Desiring the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital taxes,

Have agreed upon the following provisions:

Article 1

Persons Covered

This Convention shall apply to persons who are residents of one or both Contracting States or of both States.

 

Article 2

Taxes covered

  1. This Convention shall apply to taxes on income and on capital imposed on behalf of each of the Contracting States or of its regional or local authorities, irrespective of the system of local authorities, irrespective of the system of collection.

2. Taxes on income and capital are taxes imposed on total income, on total capital, or on items of income or capital, including taxes on gains from the alienation of movable or immovable property, taxes on the amount of wages paid by enterprises, and taxes on capital gains.

  1. The existing taxes to which the Convention shall apply are:

(a) for Norway:

(1) the national, county and municipal taxes on income, including the special national tax on income from the production and transportation by pipeline of petroleum (inntektsskatter til stat, fylker og kommuner, herunder særskatt til staten pá produksjon og rørledningstransport av petroleum);

2) national and municipal wealth tax (formuesskatt til stat og kommune);

  1. the national tax on the profits of non-resident artists (honorary gift for utenlandske kunstnere); and
  1. the seafarers’ tax (sjømannsskatt); hereinafter referred to as the Norwegian tax;

(b) for Luxembourg:

1) the personal income tax;

  1. the tax on the income of communities
  2. the special tax on directors’ fees

4) the wealth tax;

5) the communal commercial tax on the basis of operating profit and capital; And

6) the municipal tax on total wages; hereinafter referred to as “Luxembourg tax”.

  1. The Convention shall also apply to any identical or similar tax which is added to or replaces the existing taxes.
  1. The competent authorities of the Contracting States shall inform each other, if necessary, of any substantial changes in their respective taxation laws.

 

Article 3

General Definitions

  1. For the purposes of this Convention, unless the context otherwise requires different interpretation:

(a) the term “Norway” means the Kingdom of Norway, including any areas outside the territorial waters of Norway over which Norway, in accordance with Norwegian law and international law, may exercise its rights in respect of the bed of the sea, the sea bed of the sea and the sea bed of the sea bed, the subsoil and their natural resources; the term does not term does not include Svalbard, Jan Mayen Island and the Norwegian dependencies outside Europe;

  1. b) “Luxembourg” means the territory of the Grand Duchy of Luxembourg;

(c) the term “person” includes natural persons, companies and any other groups of persons;

(d) the term “company” means any legal person or entity that is treated as a legal person for tax purposes

(e) the term “nationals” means all individuals who are nationals of a Contracting State and all legal persons, partnerships and associations formed under the laws in force in a Contracting State

(f) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State

(g) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise whose place of effective management is in a Contracting State, except where the ship or aircraft is operated solely between points in the other Contracting State;

(h) the term “competent authority” means:

(1) in the case of Norway, the Minister of Finance and Customs or his duly authorized representative

(2) in the case of Luxembourg, the Minister of Finance or his duly authorized representative

  1. For the purposes of the application of the provisions of the Convention by a Contracting State, any term not otherwise defined shall have the meaning which it has under the law of that State governing the taxes covered by the Convention, unless the context otherwise requires a different interpretation.

 

Article 4

Domicile for Tax Purposes

  1. For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax in that State by reason of his domicile State by reason of his domicile, residence, place of management or any other criterion of a similar nature any other criterion of a similar nature. However, the term does not include individuals who are taxable in that Contracting State only on their income from sources in that State or on capital owned by them in that State.
  1. Where by reason of the provision of paragraph 1 of this Article an individual shall be deemed to be a resident of each of the Contracting States, his status shall be determined according to the following rules:

(a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. Where such person has a permanent home available to him in each of the in each of the Contracting States, he shall be deemed to be a resident of the Contracting of the Contracting State with which his personal and economic relations are closer (center of vital interests);

(b) If the Contracting State in which such person has his centre of vital interests cannot be determined, or he has no permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode

(c) If such person is ordinarily present in each of the Contracting States or is not ordinarily present in either of them, he shall be deemed to be a resident of the Contracting State of which he is a national;

(d) If such person is a national of both Contracting States or of neither of them, the competent authorities of the States shall settle the question by mutual agreement.

  1. Where, under the provision of paragraph 1 of this Article, a person other than an individual is individual is deemed to be a resident of each of the Contracting States, he shall be e shall be deemed to be a resident of the Contracting State in which his place of effective management.

Article 5

Permanent Establishment

  1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business where the enterprise carries on business in whole or in part.
  1. The term “permanent establishment” includes in particular:

(a) a place of management;

(b) a branch office

(c) an office;

(d) a factory

  1. e) a workshop;

(f) a mine, oil or gas well, quarry or other place of extraction of natural resources.

  1. A construction or assembly site constitutes a permanent establishment only if its duration if its duration exceeds twelve months.
  1. Notwithstanding the foregoing provisions of this Article, it shall be deemed that there is no permanent establishment if:

(a) use is made of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) goods belonging to the business are stored solely for the purpose of storage, display or delivery;

(c) goods owned by the business are stored solely for processing by another business;

(d) a fixed place of business is used solely for the purpose of purchasing goods or gathering information for the enterprise;

(e) a fixed place of business is used for the enterprise solely for the purpose of advertising, provision of information, scientific research or similar activities of a preparatory or auxiliary nature.

  1. A person acting in a Contracting State on behalf of an enterprise of the other Contracting State – other than an agent of an independent status referred to in the provisions of paragraph 6 of this Article – shall be deemed to be a “permanent establishment” in the first-mentioned “permanent establishment” in the first-mentioned State if it has, and habitually exercises in that State, such powers as the person has, in the first-mentioned State, powers which he habitually exercises in that State and which enable him to conclude contracts on behalf of the enterprise, unless the enterprise, unless the activity of such person is limited to the purchase of goods or merchandise for goods for the enterprise.
  1. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through broker, general commission agent or any other intermediary of an independent status, provided that status, provided that such persons are acting in the ordinary course of their business.
  1. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting of itself to make any such company a permanent establishment of the other.

 

Article 6

Income from Real Property

  1. Income from immovable property, including income from agriculture or forestry, may be taxed in the or forestry, may be taxed in the Contracting State in which such property is situated.
  1. The term “immovable property” shall be defined in accordance with the law of the Contracting State in which the property in question is situated. The term shall in any case include  property, livestock and equipment used in agriculture and forestry, rights to which the provisions of to which the provisions of private law concerning land ownership apply, usufruct of real estate and rights to variable or fixed royalties for the operation or concession of the exploitation or concession of the exploitation of mineral deposits, springs and other mineral deposits, springs and other resources of the earth: ships, boats and aircraft are not considered as real estate.
  1. The provisions of paragraph 1 of this article shall apply to income derived from from the direct use, letting, or leasing of real property, or from any other form of exploitation of immovable property.
  1. The provisions of paragraphs 1 and 3 of this article shall also apply to income from real estate of an enterprise and to income from real estate used for the practice of a liberal profession.

 

Article 7

Business Profits

  1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the State, unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business in such a manner business in such a manner, the profits of the enterprise may be taxed in the other State but only to the extent that they are attributable to that permanent establishment.
  1. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment shall be attributed in each Contracting State to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise carrying on separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
  1. In computing the profits of a permanent establishment, the following shall be allowed as deductions expenses of the enterprise (other than expenses which would not be deductible if the permanent establishment were a distinct and separate enterprise) incurred for the purposes permanent establishment, including executive and general administrative expenses so incurred, either and general administrative expenses so incurred, whether in the State in which such permanent establishment is situated, or elsewhere.
  1. If it is customary in a Contracting State to determine, in accordance with its law, the profits attributable to a permanent establishment profits attributable to a permanent establishment on the basis of an apportionment of the profits of the enterprise among its various parts, nothing in paragraph 2 of this Article shall prevent paragraph 2 of this Article shall not prevent that Contracting State from determining the profits in accordance with the customary apportionment; the method of apportionment adopted however, must be such that the result obtained is in accordance with the principles contained in this Article.
  1. No profit shall be attributed to a permanent establishment by reason of the fact that such permanent establishment has merely purchased goods or merchandise for the
  1. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment the same method each year, unless there are good and sufficient reasons to the contrary. sufficient grounds for proceeding otherwise.
  1. Where profits include items of income which are treated separately in other Articles of this Convention, the provisions of those Articles shall not be affected by the provisions of this Article.

 

Article 8

Maritime and Air Navigation

  1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of the enterprise is situated.
  1. If the place of effective management of a shipping enterprise is on board a ship, that place of effective management ship, that place of business shall be deemed to be in the Contracting State in which the port of that ship is situated, or in the absence of a home port, in the Contracting State of which the operator of the ship is a resident.
  1. The provisions of paragraph 1 shall apply to profits derived by the Norwegian, Danish and The provisions of paragraph 1 shall apply to profits derived by the Norwegian, Danish and Swedish air transport consortium “Scandinavian Airlines System (S.A.S.)”, but only to the extent that the profits accruing to “Det Norske Luftfartsselskap A/S (DNL), the Norwegian partner of Scandinavian Airlines System (SAS), are proportional to the profits of the (SAS), are proportionate to its participation in this organization.

 

Article 9

Associated companies

Where

(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or

(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, or the other Contracting State, and that, in either case, the two enterprises are, in their commercial or financial relations between the two enterprises are bound by terms and conditions agreed upon or imposed which differ from those which would be made between independent enterprises, the profits which profits which, but for these conditions, would have been obtained by one of the enterprises but could not in fact have been obtained by one of the enterprises because of those conditions, may be included in the profits of  that enterprise and taxed accordingly.

Article 10

Dividends

  1. Dividends paid by a company that is a resident of a Contracting State to a resident of the other resident of the other Contracting State may be taxed in that other State.
  1. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State. Subject to Subject to the provisions of paragraph 3, the tax so charged shall not exceed

(a) 5 percent of the gross amount of the dividends if the recipient is a corporation (excluding partnerships) that directly owns at least 25 percent of the capital of the company paying the dividends

(b) 15 percent of the gross amount of the dividends, in all other cases.

  1. Dividends paid by a Norwegian company to a Luxembourg company (excluding partnerships) that directly owns at least 25 per cent of the capital of the Norwegian company’s capital are taxable in Norway at a rate not exceeding 15 per cent. This provision remains in force as long as the dividends paid by Norwegian companies are allowed as a deduction from their profits for the purpose of determining the the determination of the amount subject to Norwegian national tax.
  1. The competent authorities of the Contracting States shall agree on the procedure for the application of the limited taxation in accordance with paragraphs 2 and 3. The provisions of paragraphs 2 and 3 shall not apply to the taxation of the company in respect of profits used for the payment of dividends.
  1. The term “dividends” as used in this Article means income from shares, stocks shares, profit-sharing certificates, mining shares, founder’s shares or other profit-sharing shares, with the exception of debt claims, as well as income from other shares subject to the income from shares, profit-sharing certificates, mining shares, founder’s shares or other profit-sharing of the State of which the distributing company is a resident.
  1. The provisions of paragraphs 1, 2 and 3 shall not apply if the recipient of the dividends, being a resident of a Contracting State, has in the other Contracting State of which the company making the distribution is a resident, a place of business in that State.  company paying the dividends is a resident, has in the other Contracting State a permanent establishment or that other State through a fixed base situated therein, and the holding in respect of which the dividends are paid is connected with the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
  1. Where a company which is a resident of a Contracting State derives profits or income from the other income of the other Contracting State, that other State may not impose any tax on dividends paid by the company to persons who are not residents of that other State, nor shall that other State levy any tax on such dividends. other State, nor shall that other State impose any tax on the undistributed profits distributed profits, on the undistributed profits of the company, even if the dividends paid profits consist wholly or partly of profits or income arising in such other State.

 

Article 11

Interest

 

  1. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.
  1. The term “interest” as used in this Article means income from public funds, from bonds or debentures, whether or not secured by a mortgage. public funds, bonds or debentures, whether or not secured by mortgage, and other other debt-claims of every kind and nature, and any other income assimilated to income from of money lent by the tax laws of the state in which the income arises.
  1. The provisions of paragraph 1 of this Article shall not apply if the recipient of the interest, being a resident of a Contracting State, has in the other Contracting State in which the interest arises, has a permanent establishment or carries on business in that other State professional services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected the debt-claim in respect of which the interest is paid is effectively connected with that permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
  1. If, by reason of a special relationship between the debtor and the creditor or between the two of them creditor, the amount of the interest paid, taking into account the claim for which it was paid, shall be the claim for which it is paid, exceeds that which would have been agreed between the debtor and the creditor would have agreed in the absence of such relationship, the provisions of the provisions of this article shall apply only to the latter amount. In such case, the excess portion of the payments shall remain taxable in accordance with the laws of each Contracting State, due regard being had to In such case, the excess part of the payments shall remain taxable in accordance with the law of each Contracting State, due regard being had to the other provisions of this Convention.

 

Article 12

Royalties

  1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.
  1. The term “royalties” as used in this Article means payments of any kind for the use of or the right to use remuneration of any kind paid for the use of, or the right to use, any copyright of

a literary, artistic or scientific work, including cinematograph films films or tapes for radio or television broadcasting, of a patent, of a trade mark trademark, design or model, secret plan, formula or process, or any other secret formula or process, as well as for the use of or the right to use industrial, commercial or scientific equipment and for information relating to experience gained in the experience in the industrial, commercial or scientific field.

  1. The provisions of paragraph 1 of this Article shall not apply where the resident of a Contracting State, has in the other Contracting State in which the royalties State in which the royalties arise has a permanent establishment or carries on business in that other State in which the royalties arise, has a permanent establishment or performs in that other State professional services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
  1. If, by reason of a special relationship between the debtor and the creditor or between the two of them creditor, the amount of the royalties paid, taking into account the performance for which the performance for which they are paid, exceeds the amount which would have been agreed in the absence of such relationship, the provisions of this article shall apply only to the latter amount. In such case the excess part of the payments shall remain taxable in accordance with the laws of each Contracting State and having regard to the other provisions of this Convention.

 

Article 13

Capital Gains

  1. Gains from the alienation of immovable property, as defined in paragraph 2 of Article 6, may be taxed in the paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated.
  1. Gains from the alienation of movable property forming part of the business property of a establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing professional including such gains from the alienation of such permanent establishment (alone or with the whole enterprise) or fixed base, may be taxed in that other State.
  1. Notwithstanding the provisions of paragraph 2 of this Article, gains from the alienation of from the alienation of ships and aircraft operated in international traffic and the movable property pertaining to their operation shall be taxable only in the Contracting State where, in accordance with the provisions of Article 8, profits from such activities are taxable.
  1. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall not be taxed in the Contracting State in which such gains are derived. paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the transferor is a is a resident.
  1. The provisions of paragraph 4 shall not affect the right of Norway to tax, in accordance with its own laws, gains from the alienation of shares in a public limited company which is a resident of Norway, where the shares owned by an individual who, being a resident of Luxembourg, has been a resident of a resident of Norway for the last five years before the alienation of the shares.
  1. The provisions of paragraph 4 shall not affect the right of Luxembourg to tax, in accordance with its to tax, in accordance with its own laws, gains from the alienation of shares in a company which is a resident of Luxembourg or from the liquidation of such a company, where the company, where the beneficiary is an individual who has been a resident of Luxembourg for more than fifteen years and who became a resident of Norway less than five years before the income is realized.

 

Article 14

Self-employed persons

  1. Income derived by a resident of a Contracting State in respect of professional services or activities of a similar character shall be taxable only in that State unless the resident has a fixed base regularly available to him in the other Contracting State for the resident has a fixed base in the other Contracting State for the purpose of performing his activities, if he has such a base, If he has such a base, the income may be taxed in the other State but only to the extent that it is attributable to the said fixed base.
  1. The term “professional services” includes in particular independent scientific, literary of a scientific, literary, artistic, educational or teaching nature, as well as the independent as well as the independent activities of doctors, lawyers, engineers, architects dentists and accountants.

 

Article 15

Salaried employment

  1. Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment relationship shall be treated as remuneration for the purposes of this Convention. similar remuneration derived by a resident of a Contracting State in respect of an employment  shall be taxable only in that State unless the employment is exercised in the in the other Contracting State. If the employment is exercised in that State, remuneration received in respect thereof may be taxed in that other State. If the employment is exercised in that State, remuneration received in respect thereof may be taxed in that other State.
  1. Notwithstanding the provisions of paragraph 1 of this Article, remuneration derived by a resident of a Contracting State derived in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the taxable year concerned;

(b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the fixed base which the employer has in the other State.

  1. Notwithstanding the preceding provisions of this Article, remuneration in respect of in respect of an employment exercised aboard a ship or aircraft in international traffic shall be taxable in the Contracting State in which the place of effective management of the enterprise is situated.

 

Article 16

Directors’ Fees

Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the resident of a Contracting State in his capacity as a member of the board of directors or supervisory board of a company which is a resident of the other Contracting State may be taxed in that other State.

 

Article 17

Artists and Athletes

  1. Notwithstanding the provisions of Articles 14 and 15, income derived by entertainers, such as such as theater, film, radio or television artists and musicians, as well as sportsmen and musicians, and athletes from their personal activities as such, may be taxed in the may be taxed in the Contracting State in which such activities are performed.
  1. Where income from activities exercised personally in that capacity by an entertainer or a sportsman is attributed to a person other than the entertainer or sportsman himself notwithstanding the provisions of Articles 7, 14 and 15, such income may be taxed in the Contracting State in which the activities of the entertainer or athlete are carried on.

 

Article 18

Pensions, Life Annuities and Social Security Benefits

  1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment and employment, and life annuities paid to such a resident shall be taxable only in that State.
  1. Notwithstanding the provisions of paragraph 1, social security payments arising in a Contracting State in accordance with the laws of that State and paid to a resident of the other Contracting State may be taxed in the first-mentioned State.

 

Article 19

Public Offices

  1. (a) Remuneration, other than a pension, paid by a Contracting State or a regional or local authority thereof to an individual in respect of services rendered to that State or authority shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient of the remuneration is a resident of that State who:

(i) is a national of that State, or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

  1. (a) Pensions paid by a Contracting State or by a regional or local authority thereof, either directly or out of funds constituted by them, to an individual in respect of services rendered to that State or authority shall be taxable only in that State.

(b) However, such pensions shall be taxable only in the other Contracting State if the recipient is a resident of that State and is a national of that State.

  1. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on commercial activity carried on by one of the Contracting States or by one of its regional or local authorities.

Article 20

Students

Amounts paid to a student or a trainee who is or who, immediately before visiting a Contracting State, was a resident of the other Contracting State and who is present in the first-mentioned

Contracting State solely for the purpose of furthering his education or training, shall be paid to him for his maintenance, education or training shall not be taxable in the first-mentioned State, provided that such income is derived from sources outside that State.

Article 21

Other Income

  1. Items of income of a resident of a Contracting State, wherever arising not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.
  1. The provisions of paragraph 1 shall not apply if the recipient of the income resident of a Contracting State has in the other Contracting State in which the income arises a permanent establishment or carries on business in that other State through a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected income is effectively connected with that permanent establishment or fixed base. In such case, the provisions of In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

 

Article 22

Assets

  1. Capital represented by immovable property, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated.
  1. Capital represented by movable property forming part of the business property of a permanent establishment of an enterprise or by movable property constituting a fixed base used for the performance of the exercise of professional services may be taxed in the Contracting State in which the permanent establishment or the fixed base is situated.
  1. Capital constituted by ships and aircraft operated in international traffic and movable property pertaining to their operation shall be taxable only in the State which in accordance with Article 8, is entitled to tax the profits derived from such operations.
  1. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

 

Article 23

Elimination of Double Taxation

  1. 1. [Where a resident of a Contracting State derives income or owns capital that in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State shall, subject to the provisions of paragraph 2, exempt such income or capital from tax the provisions of paragraph 2, but may, for the purpose of computing the amount of tax on the remaining income or capital of such resident, apply the same rate as if the income or capital in question had not been exempted.
  1. Where a resident of a Contracting State derives income which, in accordance with the provisions of Articles 10 and 13, paragraph 5 or 6, may be taxed in the other Contracting State, the first-mentioned State shall allow a deduction from the tax imposed on the income of such resident in an amount equal to the tax paid in the other State. The amount so deducted shall not exceed the amount of tax paid in the other Contracting State. however, shall not exceed the fraction of the tax, computed before the deduction is made, corresponding to the income received from the other Contracting State].

 

“Article 23 

  1. Where a resident of Luxembourg derives income or possesses capital which,  in accordance with the provisions of this Convention, may be taxed in Norway, Luxembourg Luxembourg shall, subject to the provisions of paragraph 2, exempt such income or capital from tax  the provisions of paragraph 2, but may, for the purpose of computing the amount of tax on the income or capital of that resident, apply the same rate as if the exempted income or capital exempted income or capital had not been exempted.
  1. Where a resident of Luxembourg receives income which, in accordance with the provisions  in accordance with the provisions of Articles 10 and 13, paragraph 5, may be taxed in Norway, Luxembourg shall allow a deduction from the tax it levies on the income of that resident of an amount equal to the tax paid in Norway. This deduction may not, However, this deduction cannot exceed the fraction of the Luxembourg tax, calculated before the deduction, corresponding to the income received from Norway.
  1. Where a resident of Norway receives income or possesses capital which, in accordance with the provisions of this Convention, may be taxed in Luxembourg, Norway shall allow a deduction from the tax it levies on the income or capital of that resident, a deduction from the tax imposed on the income or capital of that resident in an amount equal to the tax paid in Luxembourg. This deduction may not, however, exceed the fraction of the Norwegian tax, calculated before the deduction, corresponding to the income received from Luxembourg or to the capital owned in Luxembourg. § If Norway exercises or has exercised the right conferred upon it by § 1 of this Protocol, Luxembourg reserves the right to also apply the imputation method. For this purpose Article 23 shall be replaced, at the request of Luxembourg, which shall be made through diplomatic channels, by the which shall enter into force on the thirtieth day after the exchange of notes and which shall apply for the first time:

(a) in respect of taxes on income, for the taxation of income relating to the calendar year following that of the exchange of notes or to financial years ending in the calendar year following that of the exchange of notes

(b) in respect of taxes on capital, for taxes corresponding to the second year following the year of the exchange of notes.

 

“Article 23 

 

  1. Where a resident of a Contracting State derives income or owns capital that in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State shall allow:

(a) from the tax it imposes on the income of that resident, a deduction equal to the income tax paid in that other State

(b) from the tax on the capital of such resident, a deduction equal to the capital tax paid in that other State. In either case, however, such deduction shall not exceed the fraction of the income tax or capital tax paid in that other State. the income tax or the wealth tax, calculated before deduction, corresponding, as the case may be, to the income or capital taxable in that other State.

  1. Where, in accordance with the provisions of Article 19 of the Convention, income derived by a resident of a Contracting State is exempt from tax in that State, that State may nevertheless, in calculating the nevertheless, in calculating the amount of tax on the remaining income of that resident, account may be taken of the exempted income.

 

Article 24

Non-Discrimination

 

  1. Nationals of a Contracting State, whether or not they are residents of one of the Contracting States, shall not be subject in the other Contracting State to any Contracting State, shall not be subjected in the other Contracting State to any taxation or obligation that is other or more burdensome than that to which nationals of that other State are or may be nationals of that other State who are in the same position.
  1. The taxation of a permanent establishment or a fixed base which an enterprise or person who is a resident of a a resident of a Contracting State has in the other Contracting State shall not be taxed in that other shall not be less favorably assessed in that other State than the taxation of enterprises or persons of that other State carrying on the same activity. This provision shall not be construed to require a Contracting State to grant personal allowances to residents of the other Contracting State,deductions, allowances and reductions of tax on account of family status or dependents or any other personal circumstances or other personal circumstances that it grants to its own residents.The provisions of this paragraph shall not prevent a Contracting State from taxing profits from a permanent establishment in accordance with the laws of that State if the permanent establishment is owned by a corporation or other similar company of the other Contracting State. The tax shall not, however, be imposed at the tax on the profits of the permanent establishment shall not exceed the maximum rate applicable to the whole or any part of the profits of the companies in question which are residents of the first-mentioned Contracting State.
  1. Except where the provisions of Article 9, paragraph 4 of Article 11 or paragraph 4 of Article 12, interest, royalties and other charges paid by an enterprise of a Contracting State to a resident of the other Contracting State shall be  deductible, in determining the taxable profits of that enterprise, under the same conditions as if they had the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of that the same conditions as if they had been contracted with a resident of the first State.
  1. Enterprises of a Contracting State, the capital of which is wholly or partly directly or indirectly, owned or controlled by one or more residents of the other Contracting the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any tax or other or more burdensome than those to which other enterprises are or may be other enterprises of the same kind in that first-mentioned State are or may be subject to.
  1. The provisions of this Article shall not be construed to require Norway to to grant to nationals of Luxembourg who are not nationals of Norway nationals of Norway, the exceptional tax allowance which is granted to nationals of Norway and to natural persons born in Norway to parents with Norwegian citizenship, in accordance with according to section 22 of the Norwegian Tax Act.
  1. The term “taxation” in this section means taxes of any kind or name.

 

Article 25

Amicable procedure

1.[Where a resident of a Contracting State believes that State believes that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, irrespective of Convention, he may, irrespective of the remedies provided by the domestic laws of those States, submit his case to the competent authority of the Contracting State of which he is of which he is a resident or, if his case comes under paragraph 1 of Article 24, to that of the State of which he is a national.

  1. Such competent authority shall, if the complaint appears to it to be well-founded and if it is not itself in a position to provide a satisfactory solution, endeavour to settle the matter by mutual agreement with the competent authority by mutual agreement with the competent authority of the other Contracting State, with a view to avoid taxation not in accordance with the Convention. The agreement shall be applied irrespective of The agreement shall be applied irrespective of the time limits provided in the domestic laws of the Contracting States.
  1. The competent authorities of the Contracting States shall endeavor by mutual agreement to resolve any difficulties or doubts arising as to the interpretation or application of the interpretation or application of the Convention. They may also consult together to avoid double taxation in cases not provided for in the Convention.
  1. The competent authorities of the Contracting States may communicate directly with each other with a view to reaching an agreement as provided in the preceding paragraphs above. If oral exchanges of views appear to facilitate such agreement, such exchange of views may take place in a Commission composed of representatives of the competent authorities of the Contracting States.

 

Article 26

Exchange of Information

 

  1. The competent authorities of the Contracting States shall exchange such information as is relevant to the application of the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description taxes of every kind and description imposed on behalf of the Contracting States, or their States or their regional or local authorities to the extent that the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.
  1. Information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as secret in the same manner as information obtained under the domestic laws of that State and shall not be the domestic law of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of the assessment or collection of the taxes referred to in paragraph 1, in proceedings or proceedings in respect of such taxes, or in the determination of appeals in relation to such taxes, or in the enforcement of any of the foregoing. Such persons or authorities shall use such information only for such purposes. They may disclose such information in public court hearings or in judgments. Notwithstanding the foregoing information received by a Contracting State may be used for other purposes  where such possibility results from the laws of both States and where the competent authority of the State providing the information authorizes such use.
  1. In no case shall the provisions of paragraphs 1 and 2 be construed to require a Contracting State to

(a) to take administrative action at variance with the laws and administrative practice of that or of the other Contracting State

(b) to supply information that is not obtainable under the laws or normal administrative practice of that or of the other Contracting State

(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.

  1. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use the powers at its disposal to obtain the requested information, even if it does not need the information for its own tax purposes. The obligation in the preceding sentence is subject to the limitations of paragraph 3 unless such limitations are paragraph 3 unless such limitations would prevent a Contracting State from providing information solely State from communicating information solely because it has no interest in the information for its own tax purposes. of no domestic interest to it.
  1. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to refuse to supply information upon request solely because the information request solely because it is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because such trustee or because the information relates to the property rights of a person.

 

Section 27

Collection assistance

  1. The Contracting States undertake to render aid and assistance to each other in the collection of the taxes which are the subject of this Convention and for the collection of interest, cost, supplementary taxes and fines which are not of a penal nature.
  1. The request made for this purpose must be accompanied by the documents required by the laws of the laws of the requesting State to establish that the sums to be recovered are definitely due.
  1. On the basis of these documents, service and collection measures shall take place in the collection shall be effected in the requested State in accordance with the laws applicable to the collection of its own taxes. In particular, bills of collection shall be In particular, bills of collection shall be made enforceable in the form provided by the laws of that State.
  1. Tax claims to be recovered shall not be considered as privileged claims in the requested State.
  1. With respect to tax claims which are still subject to appeal, the creditor State, in order to safeguard its rights, the creditor State may request the other State to notify the debtor of the other State to notify the debtor of a constraint or a collection order. Disputes concerning the merits of the claims on which the notification was based may be brought only before the competent court of the requesting State.

 

Article 28

Diplomatic or Consular Officials

 

The provisions of this Convention shall not affect the fiscal privileges of diplomatic or consular officials diplomatic or consular officials under the general rules of the law of nations or under the provisions of special agreements.

 

Article 29

Exclusion of certain companies

This Convention shall not apply to holding companies within the meaning of the special legislation of Luxembourg (currently the law of July 31, 1929 and the Grand Ducal decree of December 17, 1938). It does not apply to income received by a resident of Norway from such holding companies nor to shares or other participation rights in the capital of such companies owned by such a person.

 

Article 30

Territorial extension

  1. This Convention may be extended, with or without modifications, to any territory which is excluded from the scope of application of this Convention in accordance with the paragraph 1(a) of Article 3, and which levies taxes similar in character to those to which the Convention applies. Such an extension shall take effect such extension shall take effect from the date, with such modifications and subject to such conditions, including conditions relating to termination, which shall be agreed upon by the Contracting States by exchange of diplomatic notes.
  1. Unless the two contracting States have agreed otherwise, when this Convention is denounced, it shall cease to apply to any territory to which it has been in accordance with the provisions of this Article.

 

Article 31

Entry into Force

  1. This Convention shall be ratified and the instruments of ratification shall be exchanged in Luxembourg as soon as possible.
  1. This Convention shall enter into force upon the exchange of the instruments of ratification and shall apply

(1) in Norway

(a) to taxes due at source on income allocated or paid on or after 1 January following the year in which the instruments of ratification are exchanged;

(b) other taxes imposed on income for taxable periods ending on or after the first day of January following the year in which the instruments of ratification are exchanged

(c) taxes on capital relating to capital existing on the first day of January of the year following that in which the instruments of ratification are exchanged or on the last day of the financial year ending in the year in which the exchange of instruments of ratification takes place in which the exchange of the instruments of ratification will take place.

(2) in Luxembourg:

(a) taxes due at source on income allocated or paid on or after the first day of January following the year in which the instruments of ratification are exchanged

(b) other taxes relating to the taxable year bearing the year after the year in which the instruments of ratification are exchanged and to any taxable year thereafter.

 

Article 32

Denunciation

This Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may – not later than June 30 of any calendar year, except within five years after the end of the calendar year in which the Convention is in force – terminate this Convention. five years after the end of the year in which the Convention has entered into force – denounce the Convention by diplomatic means and in writing. In such case, the Convention shall cease to have effect cease to have effect with respect to:

(1) in Norway:

(a) to taxes due at source on income allocated or paid on or after the first day of January next following the year of denunciation;

  1. b) other taxes assessed on income for taxable periods ending on or after 1 January of the year following the year of termination;
  1. c) wealth taxes on assets existing on January 1 of the year immediately following the year of termination or on the last day of the financial year ended during the year of the denunciation.

2) in Luxembourg:

(a) taxes due at source on income allocated or paid on or after January 1 of the year following the year of termination;

(b) other taxes relating to the taxation year with the year of the year following that in which the notice of termination is given.

 

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