News Share

The Tax Hub

Daily Tax Newsletter

Malta; Norway

Responsive image

Treaty between Malta and Norway – Details

Details of the Malta - Norway Income Tax Treaty (2012), signed on 30 March 2012, have become available. The treaty was concluded in the English language. Once in force, the treaty will replace the income tax treaty of 2 June 1975 between Malta-Norway. The treaty generally follows the OECD Model.


The maximum rates of withholding tax are:

  dividends:
  in the case of Norway:
  0% if the beneficial owner is a company (other than a partnership) which holds directly at least 10% of the capital of the company paying the dividends on the date on which the dividends are paid and has done so or will have done so for an uninterrupted 24-month period in which that date falls (article 10(2)(a)(i));
  0% if derived and beneficially owned by the government, Central Bank of Norway or Government Pension Fund Global or other qualifying government institution as agreed (article 10(3)(a)); and
  15% in general (article 10(2)(a)(ii));
  in the case of Malta:
  0% if derived and beneficially owned by the government, Central Bank of Malta or other qualifying government institution as agreed (article 10(3)(b)); and
  in all other cases, tax on the gross amount of the dividends shall not exceed that chargeable on the profits out of which the dividends are paid (article 10(2)(b));
  0% on interest (article 11(1)); and
  0% on royalties (article 12(1));

Deviations from the OECD Model include that:

  an enterprise performing services in the other contracting state is deemed to have a permanent establishment (PE), if services are provided:
  through an individual who is present in that other state for a period or periods exceeding in the aggregate 183 days in any 12-month period, and more than 50% of the gross revenues attributable to active business activities of the enterprise during this period or periods are derived from services performed in that other state through that individual (article 5(4)(a)), or
  for a period or periods exceeding 183 days in any 12-month period, and these services are performed for the same project or for a connected project through one or more individuals who are present and performing such services in that other state (article 5(4)(b));
however services performed by an individual on behalf of one enterprise shall not be considered to be performed by another enterprise, unless that other enterprise supervises, directs or controls the manner in which these services are performed by the individual (article 5(4)(b));
  expenses incurred by a resident for the purposes of "immovable property" in the other contracting state, shall be allowed as deductions on the same conditions as are allowed for residents of that state (article 6(4));
  article 7 follows the OECD Model (2008);
  in respect of dividends, the provisions of article 10 do not apply if the main purpose or one of the main purposes was to take advantage of the article by means of the creation or assignment of the shares or other rights in respect of which dividend is paid (article 10(7));
  the source state of a pension, payments under a social security system, and annuities may withhold a tax of 15% on such payment when it is paid to a resident of the other contracting state (article 17(1));
  alimony and other maintenance payments to a resident of the other state shall be taxable in the residence state of the recipient. However, such payment shall, to the extent it is not allowable as a relief to the payer, be taxable only in the source state (article 17(3));
  the treaty includes a provision regarding offshore activities (article 20); and
  the treaty includes a limitation of benefits clause (article 28).

Both states generally provide for the credit method to avoid double taxation (article 22). Norway also provides for the exemption-with-progression method (article 22(1)(b)).
Neither contracting state can terminate the treaty during a period of 5 years starting from the date of its entry into force (article 29).

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More