Agreement Norway - British Virgin Islands for profits of associated enterprises

Agreement between the Kingdom of Norway and the British Virgin Islands on the access to mutual agreement procedures in connection with the adjustment of profits of associated enterprises.

The Government of the Kingdom of Norway and the Government of  the British Virgin Islands, desiring to conclude an agreement on  the access to mutual agreement procedures in connection with the  adjustment of profits of associated enterprises,

have agreed as follows:

Article 1

Taxes covered

This Agreement shall apply to taxes on income and profits.

Article 2

Definitions

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

    1. the term «Party» means  the British Virgin Islands or Norway as the context requires;

    2. the term «Norway» means the Kingdom of Norway,  and includes the land territory, internal waters, the territorial  sea and the area beyond the territorial sea where the Kingdom of  Norway, according to Norwegian legislation and in accordance with international  law, may exercise her rights with respect to the seabed and subsoil  and their natural resources; 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 «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;

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

    6. the term «enterprise of a Party» mean  an enterprise carried on by a resident of a Party;

    7. the term «competent authority» means

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

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

  2. As regards the application of this 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 3

Principles applying to the adjustment  of ­profits of associated enterprises

Where:

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

(b) the same persons participate directly or indirectly in the  management, control or capital of an enterprise of a Party and an  enterprise of the other Party, and in either case conditions are  made or imposed between the two enterprises in their commercial  or financial relations which differ from those which would be made  between independent enterprises, then any profits which would, but  for those conditions, have accrued to one of the enterprises, but,  by reason of those conditions, have not so accrued, may be included  in the profits of that enterprise and taxed accordingly.

Article 4

Mutual agreement procedures

  1. Where an enterprise considers that,  in any case to which this Agreement applies, the principles set  out in Article 3 have not been observed, it may, irrespective of  the remedies provided by the domestic law of the Party concerned,  present its case to the competent authority of the Party of which  it is a resident. The case must be presented within three years  of the first notification of the action which is contrary or is  likely to be contrary to the principles set out in Article 3. The  competent authority shall then without delay notify the competent  authority of the other Party.

  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 5

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, this Agreement shall only have  effect when the Agreement signed on 18th may 2009 between the Kingdom  of Norway and the British Virgin Islands for the exchange of information  relating to tax matters shall have effect.

Article 6

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 month period.

  2. Notwithstanding paragraph 1, 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 Kingdom of  Norway and the British Virgin Islands 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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