The new income tax treaty between Norway and Serbia was on 17 June 2015. Once in force and effective, the new treaty will replace the 1983 income and capital tax treaty between Norway and the former Yugoslavia, which currently applies in respect of Serbia.
The treaty covers Norwegian:
It covers Serbian corporate income tax and personal income tax.
If a company is considered resident in both Contracting States, the competent authorities will determine the company's residence for the purpose of the treaty through mutual agreement based on its place of effective management, place of registration and any other relevant factors. If the authorities cannot reach mutual agreement, then any relief or exemption from tax provided by the treaty will not apply unless agreed upon by the competent authorities.
A permanent establishment will be deemed constituted when an enterprise of one Contracting State furnishes services in the other State through one or more individuals present in that other State for the same or connected project for a period or periods aggregating more than 183 days in any 12-month period.
The beneficial provisions of Articles 10 (Dividends), 11 (Interest) and 12 (Royalties) will not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the shares, debt-claims or other rights in respect of which the dividends, interest or royalties are paid was to take advantage of those Articles by means of that creation or assignment. The limitation is included in each of those Articles.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
The treaty will enter into force once the ratification instruments are exchanged, and will apply from 1 January of the year following its entry into force.
The 1983 income and capital tax treaty between Norway and the former Yugoslavia will terminate in respect of Serbia once the new treaty enters into force, and its provisions will cease to have effect once the new treaty is effective.
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