NORWAY Law and Practice Contributed by: Kristian Lindhartsen, Lilly Kathrin Relling and Tobias Kilde, Kvale Advokatfirma DA
the holder of a bill of lading – assuming the holder has acquired it in good faith. Therefore, the arbitration clause must be sufficiently specific when incorporated into the bill of lading in order for the court to recognise it; a general reference to the charterparty will not be sufficient. 7.3 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards Norway is a party to the 1958 New York Convention, which has been incorporated into the Norwegian Arbi - tration Act 2004 and the Norwegian Enforcement Act. Additionally, any bilateral agreement in place between Norway and the jurisdiction in question will be appli - cable when determining the recognition and enforce - ment of arbitral awards. 7.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction In accordance with Section 96 of the Norwegian Mari - time Code, arrest of a vessel can be granted to secure a claim in Norway, which may be pursued in a foreign jurisdiction through either arbitration or court proceed - ings. That being said, the requirements for arrest – ie, that there is a “genuine need for security”, as per Sec - tion 33-2 of the NDA – must still be satisfied. 7.5 Domestic Arbitration Institutes The Nordic Offshore and Maritime Arbitration Associa - tion (NOMA) is a joint Nordic initiative that was estab - lished in 2017. NOMA has established separate rules for arbitration based on UNCITRAL Arbitration Rules, as well as best practice guidelines and fast-track rules. The Nordic Marine Insurance Plan is a com - monly used standard contract for hull and machinery insurance, and has included NOMA as the standard solution for dispute resolution. Nevertheless, ad hoc arbitration remains the most common way of solving a maritime dispute that is referred to arbitration. 7.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses In accordance with the NDA, the court is obliged to consider whether the claim in question falls within its jurisdiction. If the parties have agreed on a for - eign jurisdiction or arbitration, the court will reject
the claim. As a consequence, the key defence where proceedings are commenced in breach of a foreign jurisdiction or arbitration clause would be to present the jurisdiction/arbitration clause to the relevant Nor - wegian court and explain why the dispute in question is covered by the wording of the clause. 8. Ship-Owners’ Income Tax Relief 8.1 Exemptions or Tax Reliefs on the Income of Ship-Owners’ Companies The main tax incentive is the tonnage tax regime, which makes it possible to operate in Norway without being subject to corporate tax on operating income. The European Free Trade Association Surveillance Authority has approved the continuation of the Nor - wegian tonnage tax (NTT) regime until 31 December 2026. The Norwegian regime is in line with EU-based regimes. The NTT regime provides a final exemption from tax on qualifying shipping income. Net financial income is subject to 22% tax. The shipping company needs to opt for the tonnage tax regime in its tax return, or all net income will be taxed at 22% (the ordinary rate). A tonnage taxed company may only perform activities related to the operation of the company’s qualifying ships. As a starting point, other business activities are not permitted by a company that is covered by the regime. However, the permitted activities include strategic and commercial management as well as day-to-day technical operations and maintenance for group-related companies outside the tonnage tax regime. This also includes activities in group-related foreign companies and controlled foreign corpora - tions (CFCs). In addition, a specified number of ancil - lary activities are within the scope of the tonnage tax regime. The following requirements need to be met for a com - pany to qualify under the tonnage tax regime. • The shipping company must be registered in Nor - way or the EEA. • The minimum requirement for assets is primarily ownership of a qualifying vessel or ownership of
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