Protocol Norway - Austria

Protocol between the Kingdom of Norway and the Republic of Austria amending the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital signed in Vienna on 28 November 1995.

The Kingdom of Norway and the Republic of Austria desiring to  conclude a Protocol amending the Convention for the avoidance of  double taxation and the prevention of fiscal evasion with respect  to taxes on income and on capital, signed in Vienna on 28 November  1995 (hereinafter referred to as «the Convention»),  have agreed as follows:

Article 1

(1) Sub-paragraph b) 4 of paragraph  (3) of Article 2 of the Convention shall be deleted.

(2) The existing sub-paragraph b) 5, 6, 7 and 8 of paragraph  (3) of Article 2 of the Convention shall become sub-paragraph b)  4, 5, 6 and 7.

Article 2

In sub-paragraph h) (ii) of paragraph 1 of Article 3 of the Convention  the words «…and customs…» shall  be deleted.

Article 3

(1) Paragraph (2) of Article 10 of  the Convention shall be deleted and replaced by the following:

«(2) 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, but if the  beneficial owner of the dividends is a resident of the other Contracting  State, the tax so charged shall not exceed 15 per cent of the gross  amount of the dividends. Such dividends shall, however, be exempt  from tax in the first-mentioned State if the beneficial owner is  a company that is not a partnership.»

(2) Paragraph (3) of Article 10 of the Convention shall  be deleted and replaced by the following:

«(3) Where dividends are derived and beneficially  owned by the Government of a Contracting State, such dividends shall  be taxable only in that State. For the purposes of this paragraph,  the term «Government of a Contracting State» shall  include:

a) In the case of Norway:

(i) the Central Bank of Norway;

(ii) the Norwegian Government Petroleum Fund;

(iii) the National Insurance Fund; and

(iv) a statutory body or any institution wholly or mainly  owned by the Government of Norway as may be agreed from time to  time between the competent authorities of the Contracting States;

b) In the case of Austria:

(i) the Austrian National Bank;

(ii) a statutory body or any institution wholly or mainly  owned by the Government of Austria as may be agreed from time to  time between the competent authorities of the Contracting States.»

(3) The existing paragraphs (3), (4) and (5) of Article  10 of the Convention shall become paragraphs (4), (5) and (6).

Article 4

(1) Paragraph (5) of Article 13 of  the Convention shall be deleted and replaced by the following:

«(5) Gains derived by an individual who is a resident  of a Contracting State from the alienation of shares or other rights  in a company which is a resident of the other Contracting State,  as well as gains from the alienation of options or other financial  instruments related to such shares or rights, may be taxed in that other  State, but only if the alienator has been a resident of that other  State at any time during the five years immediately preceding the  alienation of the shares, rights, options or financial instruments.»

(2) The existing paragraph (5) of Article 13 of the Convention  shall become paragraph (6).

Article 5

(1) Sub-paragraph b) of paragraph  (1) of Article 24 of the Convention shall be deleted and replaced  by the following:

«b) Where a resident of Austria derives items of  income which, in accordance with the provisions of Article 10 and  paragraph (5) of Article 13, may be taxed in Norway, Austria shall  allow as a deduction from the tax on the income of that resident  an amount equal to the tax paid in Norway. Such deduction shall  not, however, exceed that part of the tax, as computed before the  deduction is given which is attributable to such items of income  derived from Norway.»

(2) In paragraph (1) of Article 24 of the Convention the  following new sub-paragraph c) shall be inserted:

«c) Where in accordance with any provision of the  Convention income derived or capital owned by a resident of Austria  is exempt from tax in Austria, Austria may nevertheless, in calculating  the amount of tax on the remaining income or capital, take into  account the exempted income or capital.»

(3) In paragraph (2) of Article 24 of the Convention the  following new sub-paragraph c) shall be inserted:

«c) Where in accordance with any provision of the  Convention income derived or capital owned by a resident of Norway  is exempt from tax in Norway, Norway may nevertheless include such  income or capital in the tax base, but shall allow as a deduction  from the Norwegian tax on income or capital that part of the income  tax or capital tax, as the case may be, which is attributable to  the income derived from the other Contracting State, or the capital owned  in that other State.»

Article 6

(1) The existing Article 29 of the  Convention shall become paragraph (1) of Article 29 of the Convention.

(2) The following new paragraph (2) of Article 29 of the  Convention shall be inserted:

«(2) Insofar as, due to fiscal privileges granted to  member of diplomatic missions and consular posts under the general  rules of international law or under the provisions of special international  agreements, income or capital is not subject to tax in the receiving  State, the right to tax shall be reserved to the sending State.»

Article 7

(1) Paragraph (2) of Article 30 of  the Convention shall be deleted and replaced by the following:

«(2) The time limit for claiming a refund of excess  withholding tax is five years, starting from the beginning of the  calendar year next following the year when the dividends, interest,  royalty or other items of income were received.»

(2) The existing paragraph (2) of Article 30 of the Convention  shall become paragraph (3).

Article 8

The Contracting States shall notify each other, through diplomatic  channels, that all legal procedures for the entry into force of  this Protocol have been completed. The Protocol shall enter into force  on the first day of the third month next following the date of the  later of the notifications referred to above and shall thereupon  have effect in respect of taxes on income or on capital relating  to the calendar year (including accounting periods beginning in  any such year) next following that in which the Protocol enters  into force and subsequent years.

IN WITNESS WHEREOF the plenipotentiaries of the two Contracting  States, duly authorized thereto, have signed this Protocol.

DONE in duplicate in Vienna on this fourteenth day of November  2005 in the Norwegian, German and English languages. In case of  any divergence of interpretation the English text shall prevail.

For the Kingdom of Norway:
Bengt O. Johansen
   (sign.)

For the Republic of Austria:
Melitta Schubert
  (sign.) 

 

Additional protocol

At the moment of signing the Protocol amending the Convention  for the avoidance of double taxation and the prevention of fiscal  evasion with respect to taxes on income and on capital, signed in Vienna  on 28 November 1995 (hereinafter referred to as «the Convention»)  the undersigned have agreed upon the following provision which shall  be an integral part of the Protocol.

With respect to Article 27 of the Convention:

For the purpose of clarification it is understood that Article  27 of the Convention imposes the obligation on the Contracting State  which has received a request for information to collect the requested information  for the purposes of the requesting State in the same manner as such  information would have been collected for its own purposes. If the  requested State can obtain specific information only after the formal  commencement of administrative or criminal proceedings concerning  tax fraud, the aforementioned principle implies that such information  also has to be collected upon the request of the other Contracting  State if a comparable proceeding has been formally opened in the other  State.

IN WITNESS WHEREOF the plenipotentiaries of the two Contracting  States, duly authorized thereto, have signed this Protocol.

DONE in duplicate in Vienna on this fourteenth day of November  2005 in the Norwegian, German and English languages. In case of  any divergence of interpretation the English text shall prevail.

For the Kingdom of Norway:
Bengt O. Johansen
  (sign.)

For the Republic of Austria:
Melitta Schubert
   (sign.)

Go to the top