NORWAY Law and Practice Contributed by: Thea Slethaug, Axel Bjørke, Sigbjørn Sørensen and Jarand Aarhus, Aider Legal
Aider Legal Lars Hilles gate 30, 5008 Bergen, Norway Tel: +47 55 29 99 00 Email: Contact.legal@aider.no Web: aiderlegal.com
1. Sources and Principles 1.1 Domestic Sources of International Tax Law Legislation The primary source of Norwegian tax law is the Tax Act of 1999 ( skatteloven ), which governs the taxation of individuals and corporations. The Tax Administra - tion Act of 2016 ( skatteforvaltningsloven) regulates procedural matters, including assessments, appeals and penalties. The Withholding Tax Act ( skattebetal- ingsloven ) and various regulations issued under these acts also form part of the legislative framework. For international tax matters specifically, Norway has enacted dedicated legislation implementing its treaty obligations and unilateral measures, including rules on controlled foreign corporations (CFCs), thin capitalisa - tion and transfer pricing (primarily in the Tax Act). Administrative Guidance The Norwegian Tax Administration ( Skatteetaten ) pub - lishes binding advance rulings, guidance notes and tax return instructions. The Tax Appeals Board ( Skat- teklagenemnda ) issues decisions on disputed assess - ments. Although administrative guidance is not legally binding in the same way as legislation, it reflects the Tax Administration’s interpretation of the law and is routinely applied in practice. Case Law Norwegian courts, including the Supreme Court ( Høyesterett ), play an important role in interpreting tax legislation. Key Supreme Court decisions on interna - tional tax issues – such as the treatment of permanent establishments (PEs), treaty interpretation and anti- avoidance – are considered authoritative.
Treaty Network Norway has an extensive tax treaty network, with approximately 90 bilateral double tax treaties in force. Norway’s treaties follow the OECD Model Tax Con - vention as a general template and cover most of its major trading partners. 1.2 Hierarchy of Sources In Norway, domestic legislation takes precedence as a general rule. However, Norway applies a dualist approach to international law: international treaties do not automatically become part of Norwegian domestic law and must be incorporated through specific legisla - tive acts. Tax Treaties Tax treaties are incorporated into Norwegian law by reference through the Double Tax Convention Act of 1949 ( Dobbeltbeskatningsavtaleloven ). Once incorpo - rated, a tax treaty provision prevails over conflicting domestic tax legislation, as Norwegian courts consist - ently apply the principle that treaty obligations should be honoured. In practice, where a treaty applies, it may restrict Norway’s right to tax even if domestic law would otherwise permit it. OECD Guidelines and Commentary The OECD Model Commentaries and Transfer Pric - ing Guidelines are not legally binding but are given considerable weight by Norwegian courts and the Tax Administration when interpreting treaties and domes - tic transfer pricing rules. 1.3 OECD Model/United Nations Influence on Treaty Practice Norway generally follows the OECD Model Tax Con - vention in its treaty negotiations. The OECD Model
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