Agreement Norway - British Virgin Islands for individuals

Agreement between the Kingdom of Norway and the British Virgin Islands for the avoidance of double taxation on individuals.

The Government of Kingdom of Norway and the Government of the  British Virgin Islands, desiring to supplement the Agreement for  the exchange of information relating to tax matters concluded on 18th  of May 2009 by concluding an Agreement for the avoidance of double  taxation on individuals with respect to taxes on income,

have agreed as follows:

Article 1

Individuals covered

  1. This Agreement shall apply to individuals  who are residents of one or both of the Parties.

  2. The Agreement does not apply to activities carried on in  an area beyond the territorial sea where a Party, according to its  legislation and in accordance with international law, may exercise  its rights with respect to the seabed and subsoil and their natural  resources.

Article 2

Taxes covered

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

    1. in the case of the British Virgin Islands,  the income tax (hereinafter referred to as «British Virgin  Islands tax»);

    2. in the case of Norway:

      1. the tax on general income;

      2. the tax on personal income;

      3. the tax on Remuneration to non-resident artistes, etc.

        (hereinafter referred to as «Norwegian tax»).

  2. The Agreement shall apply also to any identical or substantially  similar taxes that are imposed after the date of signature of the  Agreement in addition to, or in place of, the existing taxes. The  competent authorities of the Parties shall notify each other of  any significant changes that have been made in their taxation laws  concerning individuals.

Article 3

General definitions

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

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

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

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

    4. 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 Norway the Minister of Finance or the Minister’s  authorised representative or the authority which is designated as  a competent authority for the purpose of this Agreement;

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

    6. 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.

  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 4

Resident

  1. For the purposes of this Agreement,  the term «resident of a Party» means:

    1. in Norway in respect of an individual  any individual who, under the laws of Norway, is liable to tax therein  by reason of his domicile, residence or any other criterion of a similar  nature. This term, however, does not include an individual who is  liable to tax in Norway in respect only of income from sources in  Norway;

    2. in the British Virgin Islands in respect of an individual  who, under the laws of the British Virgin Islands is ordinarily  resident.

  2. Where by reason of the provisions of paragraph 1 an individual  is a resident in both Parties, then his status shall be determined  as follows:

    1. he shall be deemed to be a resident  only of the Party in which he has a permanent home available to  him; if he has a permanent home available to him in both Parties,  he shall be deemed to be a resident only of the Party with which  his personal and economic relations are closer (centre of vital  interests);

    2. if the Party in which he has his centre of vital interests  cannot be determined, or if he has not a permanent home available  to him in either Party, he shall be deemed to be a resident only  of the Party in which he has an habitual abode;

    3. if he has a habitual abode in both Parties or in neither  of them, the competent authorities of the Parties shall settle the  question by mutual agreement.

Article 5

Income from employment

  1. Subject to the provisions of Articles  6, 7, 8 and 9, salaries, wages and other similar remuneration derived  by a resident of a Party in respect of an employment shall be taxable  only in that Party unless the employment is exercised in the other  Party. If the employment is so exercised, such remuneration as is  derived therefrom may be taxed in that other Party.

  2. Notwithstanding the provisions of paragraph 1, remuneration  derived by a resident of a Party in respect of an employment exercised  in the other Party shall be taxable only in the first-mentioned  Party if:

    1. the recipient is present in the other  Party for a period or periods not exceeding in the aggregate 183  days in any twelve month period commencing or ending in the fiscal year  concerned; and

    2. the remuneration is paid by, or on behalf of, an employer  who is not a resident of the other Party; and

    3. the remuneration is not borne by a fixed place of business  through which the business is wholly or partly carried on which  the employer has in the other Party.

  3. Paragraph 2 of this Article shall not apply to remuneration  derived by a resident of a Party in respect of an employment exercised  in the other Party and paid by, or on behalf of, an employer who  is not a resident of that other Party if:

    1. the recipient renders services in the  course of that employment to a person other than the employer and  that person, directly or indirectly, supervises, directs or controls the  manner in which those services are performed, and;

    2. those services constitute an integral part of the business  activities carried on by that person.

  4. Notwithstanding the preceding provisions of this Article,  remuneration derived in respect of an employment exercised aboard  a ship or aircraft operated in international traffic by an enterprise  of a Party, may be taxed in that Party. Where a resident of Norway  derives remuneration in respect of an employment exercised aboard  an aircraft operated in international traffic by the air transport  consortium Scandinavian Airlines System (SAS), such remuneration  shall be taxable only in Norway.

Article 6

Directors’ fees

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

Article 7

Artistes and sportsmen

  1. Income derived by a resident of a Party  as an entertainer, such as a theatre, motion picture, radio or television  artiste, or a musician, or as a sportsman, from his personal activities  as such exercised in the other Party, may be taxed in that other  Party.

  2. Where income in respect of personal activities exercised  by an entertainer or a sportsman in his capacity as such accrues  not to the entertainer or sportsman himself but to another individual  or legal entity, that income may be taxed in the Party in which  the activities of the entertainer or sportsman are exercised.

Article 8

Pensions

Pensions, including social security payments, and annuities arising  in a Contracting State and paid to a resident of the other Contracting  State may be taxed in the first-mentioned State. However, the tax so  charged may not exceed 15 per cent of the gross amount of the payment.

Article 9

Government service

    1. Salaries, wages and other similar remuneration,  other than a pension, paid by a Party or a political subdivision  or a statutory body or a local authority thereof to an individual  in respect of services rendered to that Party or subdivision or  body or authority shall be taxable only in that Party.

    2. However, such salaries, wages and other similar remuneration  shall be taxable only in the other Party if the services are rendered  in that Party and the individual is a resident of that Party who  did not become a resident of that Party solely for the purpose of  rendering the services.

  1. The provisions of Articles 5, 6 and 7 shall apply to salaries,  wages, and other similar remuneration in respect of services rendered  in connection with a business carried on by a Party or a political  subdivision or a statutory body or a local authority thereof.

Article 10

Students

Payments which a student or business apprentice who is or was  immediately before visiting a Party a resident of the other Party  and who is present in the first-mentioned Party solely for the purpose  of his education or training receives for the purpose of his maintenance,  education or training shall not be taxed in that Party, provided  that such payments arise from sources outside that Party.

Article 11

Elimination of double taxation

  1. In the British Virgin Islands double  taxation shall be avoided in accordance with the laws of the British  Virgin Islands.

  2. In Norway double taxation shall be avoided as follows:

    Subject to the provisions of the laws of Norway regarding the  allowance as a credit against Norwegian tax of tax payable in a  territory outside Norway (which shall not affect the general principle  hereof) -

    1. Where a resident of Norway derives  income which, in accordance with the provisions of this Agreement,  may be taxed in the British Virgin Islands, Norway shall allow as  a deduction from the tax on the income of that resident, an amount  equal to the income tax paid in the British Virgin Islands on that  income;

      Such deduction shall not, however, exceed that part of the income  tax, as computed before the deduction is given, which is attributable  to the income which may be taxed in the British Virgin Islands.

    2. Where in accordance with any provision of the Agreement  income derived by a resident of Norway is exempt from tax in Norway,  Norway may nevertheless include such income in the tax base, but  shall allow as a deduction from the Norwegian tax on income that  part of the income tax, as the case may be, which is attributable  to the income derived from the British Virgin Islands.

Article 12

Mutual agreement procedure

  1. Where an individual 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 13

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.

  2. The Agreement shall have effect:

    1. in the British Virgin Islands:

      in respect of British Virgin Islands tax, on tax chargeable for  any tax year beginning on or after the first day of January of the  calendar year next following that in which this Agreement enters  in force;

    2. in Norway:

      in respect of Norwegian tax, on tax 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.

  3. Notwithstanding paragraph 2 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 14

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 case, 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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