Norway has an extended network of bilateral agreements against the double taxation of incomes and capital of a company with non resident shareholders: Albania, Argentina, Azerbaijan, Australia, Austria, Bangladesh, Barbados, Belgium, Benin, Bosnia and Herzegovina, Brazil, Bulgaria, Cayman Island, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Faeroe Islands, Finland, France, Gambia, Georgia, Germany, Greece, Greenland, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Kazakhstan, Kenya, Latvia, Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Malta, Morocco, Mexico, Nepal, Netherlands, Netherlands Antilles, New Zealand, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, Senegal, Serbia, Sierra Leone, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Kingdom, United States of America, Venezuela, Vietnam, Zambia, Zimbabwe.
Our company registration experts in Norway can give you more details about the provisions of these agreements.
The benefits of these treaties include, besides the taxation of a company with non resident shareholders only in one of the signatory states, advantageous lower withholding taxes for dividends, interests and royalties. The withholding taxes are more advantageous for the companies were the nonresidents have a higher participation at the capital. For example, the withholding tax on dividends for a company where at least 10% of the capital is held by a Swiss citizen is exempt. In the rest of the cases the withholding tax is 15%.
If a Norwegian investor owns 15% of the capital, there is no withholding tax on dividends, while the tax in the rest of the cases is 15%. If a company in Norway has at least a half of the capital held by an investor with the residence in Sierra Leone then it’s exempt from paying tax on dividends. In the remaining cases, the tax is 5%.
In certain cases, besides the condition of owning capital, is necessary to have ownership on it for a period of time. For example, the treaty with Poland stipulates that there is a 15% withholding tax on dividends but if one Polish shareholder has had at least 10% of the capital for more than two years, the withholding tax on dividends is exempt.
All these incentives are very important in attracting foreign investors. Now, besides the fact that they are not afraid that will be double taxed for their income, they also have the certainty that is more than advantageous to open a company in Norway. Businessmen that want to invest in this country are invited to contact our Norwegian company formation agents.
Our Norwegian company formation firm is a part of Bridgewest, an international network formed of legal and company formation consultants that can provide foreign investors with various corporate services in numerous jurisdictions such as: Japan, Hong-Kong or Singapore.