Agreement Norway - British Virgin Islands for enterprises operating ships or aircraft in international traffic

Agreement between the Kingdom of Norway and the British Virgin Islands for the avoidance of double taxation with respect to enterprises operating ships or aircraft in international traffic.

The Government of the Kingdom of Norway and the Government of  the British Virgin Islands, desiring to conclude an agreement for  the avoidance of double taxation with respect to enterprises operating  ships or aircraft in international traffic,

have agreed as follows:

Article 1

Definitions

  1. For the purposes of this Agreement,  unless the context otherwise requires:

    1. the terms «a Party» means  Norway or the British Virgin Islands, as the context requires; the  term «Parties» means Norway and the British Virgin  Islands;

    2. the term «Norway» means the Kingdom of Norway,  and includes the land territory, internal waters and the territorial  sea; the term does not comprise Svalbard, Jan Mayen and the Norwegian  dependencies («biland»);

    3. the term «the British Virgin Islands» means the  territory of the Virgin Islands as referred to in the Virgin Islands  Constitution Order 2007;

    4. the term «person» includes an individual,  a company and any other body of persons;

    5. the term «company» means any body corporate  or any entity that is treated as a body corporate for tax purposes;

    6. the term «resident of a Party» means

      1. in Norway any person, who under the law  of that Party is liable to tax therein by reason of his domicile,  residence, place of management, place of incorporation or any other  criterion of a similar nature; this term, however, does not include  an individual who is liable to tax in that Party in respect only  of income from sources in that Party;

      2. in the British Virgin Islands, an individual ordinarily  resident in the British Virgin Islands, and a company, partnership or  other entity created under the laws of the British Virgin Islands;  provided that an entity created under the laws of the British Virgin  Islands shall not be deemed to be resident in the British Virgin  Islands unless its effective management is carried on in the British  Virgin Islands;

    7. the term «enterprise» applies to the carrying  on of any business;

    8. the term «enterprise of a Party» means  an enterprise carried on by a resident of a Party;

    9. the term «international traffic» means  any transport by a ship or aircraft operated by an enterprise of  a Party, except when the ship or aircraft is operated solely between places  in the other Party;

    10. the term «income derived from the operation of  ships or aircraft in international traffic» means revenues,  gross receipts and profits derived from:

      1. such operation of ships or aircraft  for the transport of passengers or cargo;

      2. the rental on a charter basis of ships or aircraft where  the rental is ancillary to the operation of ships or aircraft in  international traffic;

      3. the sale of tickets or similar documents and the provision  of services connected with such operation, either for the enterprise  itself or for any other enterprise, where such sale of tickets or  similar documents or provision of services is directly connected  with or ancillary to the operation of ships or aircraft in international  traffic;

      4. the use, maintenance or rental of containers (including  trailers and related equipment for the transport of containers)  used for the transport of goods or merchandise, where the use, maintenance  or rental is directly connected with or ancillary to the operation  of ships or aircraft in international traffic;

      5. interest on funds deposited directly in connection with  the operation of ships or aircraft in international traffic;

    11. the term «competent authority» means:

      1. in the case of Norway, the Minister  of Finance or the Minister’s authorised representative;

      2. in the case of the British Virgin Islands, the Financial  Secretary or a person or authority designated by him in writing;

  2. As regards the application of the Agreement at any time  by a Party, any term not defined therein shall, unless the context  otherwise requires, have the meaning that it has at that time under  the law of that Party for the purposes of the taxes to which the  Agreement applies, any meaning under the applicable tax laws of  that Party prevailing over a meaning given to the term under other  laws of that Party.

  Article 2

Avoidance of double taxation

  1. Income derived from the operation of  ships or aircraft in international traffic by an enterprise of a  Party shall be taxable only in that Party.

  2. Gains derived from the alienation of ships or aircraft or  movable property pertaining to the operation of ships and aircraft  in international traffic by an enterprise of a Party shall be taxable  only in that Party.

  3. The provisions of paragraphs 1 and 2 shall also apply to  income and gains derived by an enterprise of a Party from the participation  in a pool, a joint business or an international operating agency.

Article 3

Mutual agreement procedure

  1. Where a person considers that the actions  of one or both of the Parties result or will result for him in taxation  not in accordance with the provisions of this Agreement, he may,  irrespective of the remedies provided by the domestic law of those  Parties, present his case to the competent authority of the Party  of which he is a resident. The case must be presented within three  years from the first notification of the action resulting in taxation  not in accordance with the provisions of the Agreement.

  2. The competent authority shall endeavour, if the objection  appears to it to be justified and if it is not itself able to arrive  at a satisfactory solution, to resolve the case by mutual agreement  with the competent authority of the other Party, with a view to  the avoidance of taxation which is not in accordance with the Agreement.  Any agreement reached shall be implemented notwithstanding any time  limits in the domestic law of the Parties.

  3. The competent authorities of the Parties shall endeavour  to resolve by mutual agreement any difficulties or doubts arising  as to the interpretation or application of the Agreement.

  4. The competent authorities of the Parties may communicate  with each other directly for the purpose of reaching an agreement  in the sense of the preceding paragraphs.

Article 4

Entry into force

  1. This Agreement shall enter into force  on the thirtieth day after the later of the dates on which each  of the Parties has notified the other in writing that the procedures  required by its law have been complied with. The Agreement shall  have effect on taxes chargeable for any tax year beginning on or  after the first day of January of the year next following that in  which this Agreement enters into force.

  2. Notwithstanding paragraph 1 of this Article, the Agreement  shall only be applicable when the Agreement between the British  Virgin Islands and the Kingdom of Norway for the exchange of information  relating to tax matters signed on 18th May 2009 shall have effect.

Article 5

Termination

  1. This Agreement shall remain in force  until terminated by a Party. Either Party may terminate the Agreement  by giving written notice of termination at least six months before  the end of any calendar year. In such event, the Agreement shall  cease to have effect on taxes chargeable for any tax year beginning  on or after the first day of January of the year next following the  end of the six months period.

  2. Notwithstanding paragraph 1 of this Article, this Agreement  will be terminated, without giving notice of termination, on the  date of termination of the Agreement signed on 18th May 2009 between  the British Virgin Islands and the Kingdom of Norway for the exchange  of information relating to tax matters.

In witness whereof the undersigned, being duly authorised thereto,  have signed this Agreement.

Done at Copenhagen this 18th day of May 2009, in duplicate in  the English language.

For the Government of the Kingdom of Norway:

For the Government of the British virgin Islands:

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