NORWAY Law and Practice Contributed by: Daniel Nygaard Nyberg, Karoline Ulleland Hoel, Ole Andenæs and Jens Fredrik Bøen, Wikborg Rein Advokatfirma AS
in AIFs that hold investments outside the Norwegian participation exemption). The taxation of private indi - viduals is not considered further here. 4.9 Double Tax Treaties Alternative funds established as Norwegian limited companies typically qualify for benefits under double tax treaties between Norway and other states. Norwe - gian limited partnerships do not qualify for the treaties, but their underlying partners may. 4.10 Foreign Account Tax Compliance Act (FATCA)/Common Reporting Standard (CRS) Compliance Regime The FATCA and CRS compliance regime in Norway broadly follows international standards, and Norway entered into a FATCA Model 1 intergovernmental agreement (IGA) with the US tax authorities (IRS) in 2013. 4.11 Anti-Money Laundering (AML) and Know Your Customer (KYC) Regime As a starting point, both registered and authorised AIFMs are subject to the Norwegian AML Act (trans - posing EU AML directives into Norwegian law). The funds, irrespective of their structure and type (regulat - ed/unregulated), are not subject to the AML Act them - selves. The FSAN states in its administrative practice that the AIFM must treat the investors in a fund under management as their customers for the purpose of the AML Act and must ensure that the necessary due diligence measures are carried out at manager level.
However, the AML Act only applies to entities estab - lished/registered in Norway, including branches of for - eign undertakings, meaning that non-Norwegian man - agers marketing funds in Norway on a cross-border basis will not be subject to the Norwegian AML Act. 4.12 Data Security and Privacy for Investors The EU General Data Protection Regulation (GDPR) was incorporated into the EEA Agreement as well as into the Norwegian Personal Data Act, which has been in effect since 20 July 2018. Managers and funds must ensure compliance with the GDPR when dealing with investors in Norway. 4.13 Anticipated Changes for Investors The Norwegian tax authorities are considering sub - jecting liquidation proceeds to withholding taxes to the same extent that ongoing dividend distributions are subject to withholding taxes. This could, for exam - ple, have an impact on the ability to distribute gain tax-free to US investors and other investors that are not exempt from Norwegian withholding taxes in con - nection with the liquidation of a Norwegian holding structure. When the pre-marketing rules under the CBDF Direc - tive came into force in October, pre-marketing became a regulated activity. As further described in 4.4 Rules Concerning Marketing of Alternative Funds , the AIFM Act has been amended to include the pre-mar - keting regime under the CBDF Directive.
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