NORWAY Law and Practice Contributed by: Kristian Lindhartsen, Lilly Kathrin Relling and Tobias Kilde, Kvale Advokatfirma DA
agreement in place between Norway and the jurisdiction in question will be applicable when determining the recognition and enforcement of arbitral awards. 6.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction In accordance with Section 96 of the Norwegian Maritime Code, arrest of a vessel can be grant - ed to secure a claim in Norway, which may be pursued in a foreign jurisdiction through either arbitration or court proceedings. That being said, the requirements for arrest – ie, that there is a “genuine need for security”, as per Section 33-2 of the NDA – must still be satisfied. 6.5 Domestic Arbitration Institutes The Nordic Offshore and Maritime Arbitration Association (NOMA) is a joint Nordic initiative that was established in 2017. NOMA has estab - lished separate rules for arbitration based on UNCITRAL Arbitration Rules, as well as best practice guidelines and fast-track rules. The Nor - dic Marine Insurance Plan is a commonly used standard contract for hull and machinery insur - ance, 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. 6.6 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 foreign 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/arbi -
tration clause to the relevant Norwegian court and explain why the dispute in question is cov - ered by the wording of the clause. 7. Ship-Owners’ Income Tax Relief 7.1 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 oper - ating income. The European Free Trade Asso - ciation Surveillance Authority has approved the continuation of the Norwegian 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 com - pany 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 com - pany’s qualifying ships. As a starting point, other business activities are not permitted by a company that is covered by the regime. How - ever, the permitted activities include strategic and commercial management as well as day- to-day technical operations and maintenance for group-related companies outside the ton - nage tax regime. This also includes activities in group-related foreign companies and controlled foreign corporations (CFCs). In addition, a speci - fied number of ancillary activities are within the scope of the tonnage tax regime.
430 CHAMBERS.COM
Powered by FlippingBook