THE SCHEDULE
Convention Between The Republic Of Singapore And
The Kingdom Of Norway For The Avoidance Of
Double Taxation And The Prevention Of
Fiscal Evasion With Respect To Taxes On Income
The Government of the Republic of Singapore and the Government of the Kingdom of Norway,
Desiring to conclude a Convention for the avoidance of double taxation with respect to taxes on income,
Have agreed as follows:
Article 1
Personal Scope
This Convention shall apply to persons who are residents of one or both of the Contracting States.
Article 2
Taxes Covered
1. This Convention shall apply to taxes on income imposed on behalf of each Contracting State or of its local authorities, irrespective of the manner in which they are levied.
2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property and taxes on the total amounts of wages or salaries paid by enterprises.
3. The existing taxes to which the Convention shall apply are:
(a)
in Singapore:
the income tax (hereinafter referred to as “Singapore tax”);
(b)
in Norway:
(i)
the national tax on income (inntektsskatt til staten);
(ii)
the county municipal tax on income (inntektsskatt til fylkeskommunen);
(iii)
the municipal tax on income (inntektsskatt til kommunen);
(iv)
the national contributions to the Tax Equalisation Fund (fellesskatt til Skattefordelingsfondet);
(v)
the national dues on remuneration to non-resident artistes (avgift til staten av honorarer som tilfaller kunstnere bosatt i utlandet);
(vi)
the seamen’s tax (sjømannsskatt);
(hereinafter referred to as “Norwegian tax”).
4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes.
5. If by reason of changes made in the taxation law of either Contracting State, it seems desirable to amend any Article of the Convention without affecting the general principles thereof the necessary amendments may be made by mutual consent by means of an exchange of diplomatic notes or in any other manner in accordance with their constitution procedures.
Article 3
General Definitions
1. For the purposes of this Convention, unless the context otherwise requires:
(a)
(i)
the term “Singapore” means the Republic of Singapore;
(ii)
the term “Norway” means the Kingdom of Norway; the term does not comprise Svalbard, Jan Mayen and the Norwegian dependencies (“biland”);
(b)
the terms “a Contracting State” and “the other Contracting State” mean Singapore or Norway as the context requires;
(c)
the term “person” includes an individual, an undivided estate of a deceased person, a trust, a company and any other body of persons which is treated as an entity for tax purposes;
(d)
the term “company” means any body corporate or any other entity which is treated as a body corporate for tax purposes;
(e)
the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
(f)
the term “tax” means Singapore tax or Norwegian tax as the context requires;
(g)
the term “national” means;
(i)
any individual possessing the nationality of a Contracting State;
(ii)
any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State;
(h)
the term “international traffic” means carriage of passengers, mails, livestock or goods by a ship or aircraft which is operated by an enterprise of one of the Contracting States, except when the ship or aircraft is operated solely between places in the other Contracting State;
(i)
the term “profits of an enterprise” does not include rents or royalties in respect of literary or artistic copyrights, motion picture films or of tapes for television or broadcasting or of mines, oil wells, quarries, or other places of extraction of natural resources or of timber or forest produce, or income in the form of dividends, interest, rents, royalties, or fees or other payments derived from the management, control or supervision of the trade, business or other activity of any other enterprise or concern or payments for labour or personal services or income derived from the operation of ships or aircraft;
(j)
the term “competent authority” means:
(i)
in Singapore, the Minister for Finance or his authorised representative;
(ii)
in Norway, the Minister of Finance and Customs or his authorised representative.
2. As regards the application of the Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that State concerning the taxes to which the Convention applies.
Article 4
Fiscal Domicile
1. For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the laws of a Contracting State is treated as a resident of that State for tax purposes.
2. Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his status shall be determined as follows:
(a)
he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (hereinafter referred to as his “centre of vital interests”);
(b)
if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;
(c)
if he has an habitual abode in both Contracting States or in neither of them, the competent authorities of the two Contracting States shall settle the question by mutual agreement.
3. Where by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. If its place of effective management cannot be determined, the competent authorities of the Contracting States shall settle the question by mutual agreement.
Article 5
Permanent Establishment
1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes especially but is not limited to:
(a)
a place of management;
(d)
a store or other sales outlet;
(g)
a warehouse, except where used for purposes mentioned in paragraph 5; and
(h)
a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3. The term “permanent establishment” also includes:
(a)
a building site, or a construction, installation or assembly project, but only if such site or project is continued for more than 6 months;
(b)
the furnishing of services, including consultancy services, by a resident of a Contracting State through employees or other personnel for a period or periods aggregating more than three months in any 12-month period.
4. An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it carries on supervisory activities in that other Contracting State for more than 6 months in connection with a construction, installation or assembly project or any combination of them which are being undertaken in that other Contracting State.
5. The term “permanent establishment” shall be deemed not to include —
(a)
the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;
(b)
the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;
(c)
the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
(d)
the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;
(e)
the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character for the enterprise.
6. A person acting in a Contracting State on behalf of an enterprise of the other Contracting State, other than an agent of an independent status to whom paragraph 7 applies, shall be deemed to be a permanent establishment in the first-mentioned Contracting State if —
(a)
he has, and habitually exercises in the first-mentioned Contracting State, an authority to conclude contracts for or on behalf of the enterprise unless the exercise of such authority is limited to the purchase of goods or merchandise for that enterprise; or
(b)
he habitually maintains in the first-mentioned Contracting State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders on behalf of the enterprise; or
(c)
he habitually secures orders in the first-mentioned Contracting State wholly or almost wholly for the enterprise itself or for any other enterprise which is controlled by it or has a controlling interest in it.
7. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because that enterprise carries on business in that other Contracting State through a broker, general commission agent, or any other agent of an independent status, where such broker or agent is acting in the ordinary course of his business.
8. Except with respect to reinsurance, an enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it collects premiums in that other State, or insures risks situated therein, through an employee or representative situated therein who is not an agent of independent status to whom paragraph 7 applies.
9. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
Article 6
Income From Immovable Property
1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
Article 7
Business Profits
1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
3. In determining the profits of a permanent establishment, there shall be allowed as deductions all expenses, including executive and general administrative expenses, which would be deductible if the permanent establishment were an independent enterprise, insofar as they are reasonably allocable to the permanent establishment, whether incurred in the Contracting State in which the permanent establishment is situated or elsewhere.
4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
5. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.
Article 8
Shipping And Air Transport
1. Notwithstanding the provisions of Article 7, profits of an enterprise of one of the Contracting States from the operation of aircraft in international traffic shall be taxable only in that State.
2. Notwithstanding the provisions of Article 7, profits of an enterprise of one of the Contracting States from the operation of ships in international traffic may be taxed in the other Contracting State only if such profits are derived from that other Contracting State.
3. Provided that —
(a)
when a Singapore enterprise derives profits from Norway by operating ships in international traffic the tax charged in Norway in respect of such profits shall be reduced by an amount equal to 50 per cent thereof and the reduced amount of the Norwegian tax payable shall be allowed as a credit against the Singapore tax charged in respect of such profits;
(b)
when a Norwegian enterprise derives profits from Singapore by operating ships in international traffic the tax charged in Singapore in respect of such profits shall be reduced by 50 per cent thereof and the reduced amount of the Singapore tax payable on the profits shall be allowed as a credit against the Norwegian tax charged in respect of these profits.
4. Where a ship or aircraft is operated solely between places in a Contracting State and one or more structures used for the exploration or exploitation of natural resources situated in waters adjacent to the territorial waters of that State, the exemption or reduction of tax provided for in paragraphs 1 and 3 of this Article shall not apply.
5. The provisions of paragraphs 1, 2 and 3 shall also apply to profits from the participation in a pool, a joint business or an international operating agency, but only to so much of the profits so derived as is attributable to the participant in proportion to its share in the joint operation.
6. The provisions of paragraph 1 shall apply to profits derived by the joint Norwegian, Danish and Swedish air transport consortium Scandinavian Airlines System (SAS), but only in so far as profits derived by Det Norske Luftfartsselskap A/S (DNL), the Norwegian partner of the Scandinavian Airlines System (SAS), are in proportion to its share in that organisation.
Article 9
Associated Enterprises
Where —
(a)
an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or
(b)
the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
Article 10
Dividends
1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in both Contracting States.
2. Where such dividends are taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, and the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3. The Government of Singapore Investment Corporation Pte. Ltd. shall be exempt from Norwegian tax with respect to dividends on shares in Norwegian joint stock companies, provided that the scope of this exemption has been agreed by the competent authorities of the Contracting States.
However, such exemption shall in no case be given with respect to shares held for other than public purposes and not if the holding constitutes a substantial participation.
4. The provisions of paragraph 2 shall apply to dividends paid by a company which is a resident of Singapore if Singapore, subsequent to the date of signature of this Convention, imposes a tax on dividends in addition to the tax chargeable in respect of the profits or income of the company.
5. The term “dividends” as used in this Article means income from shares, mining shares, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subject to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
6. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State, of which the company paying the dividends is a resident, through a permanent establishment situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.
7. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of income arising in such other State.
8.—
(
a) Dividends shall be deemed to arise in Norway if they are paid by a company which is a resident of Norway.
(
b) Dividends shall be deemed to arise in Singapore —
(i)
if they are paid by a company which is a resident of Singapore; or
(ii)
if they are paid by a company which is a resident of Malaysia out of profits arising in Singapore and qualifying as dividends arising in Singapore under Article VII of the Agreement for the Avoidance of Double Taxation between Singapore and Malaysia signed on 26th December 1968.
Article 11
Interest
1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 15 per cent of the gross amount of the interest. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and paid to the Government of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State.
4. For the purpose of paragraph 3, the term “Government” —
(a)
in the case of Singapore means the Government of Singapore, and shall include:
(i)
the Monetary Authority of Singapore and the Board of Commissioners of Currency;
(ii)
the Government of Singapore Investment Corporation Pte. Ltd.;
(iii)
INTRACO Limited, The Development Bank of Singapore Limited and Export Credit Insurance Corporation of Singapore Limited;
(iv)
a statutory body or any institution wholly or mainly owned by the Government of Singapore, a local authority or a statutory body thereof, as may be agreed from time to time between the competent authorities of the Contracting States;
(b)
in the case of Norway means the Government of Norway, and shall include:
(ii)
the Central Bank of Norway;
(iii)
the Norwegian Guarantee Institute for Export Credits;
(iv)
A/S Eksportfinans; and
(v)
any institution wholly or mainly owned by the Government of Norway or a local authority thereof, as may be agreed from time to time by the competent authorities of the Contracting States.
5. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, as well as all other income assimilated to income from money lent by the taxation laws of the State in which the income arises, and in particular income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.
6. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.
7. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority, a statutory body or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the State in which the permanent establishment is situated.
8. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 12
Royalties
1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 15 per cent of the gross amount of the royalties. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
3. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of scientific work, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial or scientific experience.
4. The provisions of paragraphs 1 and 2 of this Article shall apply equally to any sum derived by a resident of one of the Contracting States from sources within the other Contracting State from the alienation of any right or property from which royalties, as defined in paragraph 3 of this Article, are or may be derived.
5. The provisions of paragraphs 1, 2 and 4 of this Article shall not apply if the recipient of the royalties or sums, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the royalties shall be treated as the income of the permanent establishment through which the business is carried on.
6. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority, a statutory body or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment then such royalties shall be deemed to arise in the State in which the permanent establishment is situated.
7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the right, use or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13
Personal Services
1. Subject to the provisions of Articles 14 and 16, salaries, wages and other similar remuneration or income derived by a resident of a Contracting State in respect of personal (including professional) services shall be taxable only in that State unless the services are rendered in the other Contracting State. If the services are so rendered, such remuneration or income as is derived therefrom may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration or income derived by a resident of a Contracting State in respect of services rendered in the other Contracting State shall be taxable only in the first-mentioned State if:
(a)
the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any 12-month period, and
(b)
the services are rendered for or on behalf of a person who is a resident of the first-mentioned State, and
(c)
the remuneration is subject to tax in the first-mentioned State, and
(d)
the remuneration is not borne by a permanent establishment which the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration derived by a resident of a Contracting State in respect of an employment exercised aboard a ship or aircraft operated in international traffic shall be taxable only in that Contracting State.
Article 14
Directors’ Fees
Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or of a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.
Article 15
Artistes And Athletes
1. Notwithstanding the provisions of Article 13, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other Contracting State.
Such income shall, however, be exempt from tax in that other Contracting State if such activities are supported, wholly or substantially, from the public funds of the Government of either Contracting State or a local authority or a statutory body thereof.
2. Where income in respect of personal activities exercised in a Contracting State by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7 and 13, be taxed in that Contracting State.
Such income shall, however, be exempt from tax in that Contracting State if such activities are supported, wholly or substantially, from the public funds of the Government of either Contracting State or a local authority or a statutory body thereof.
Article 16
Government Service
1.—
(
a) Remuneration, other than a pension, paid by a Contracting State or a subdivision, a local authority or a statutory body thereof to an individual in respect of services rendered to that State or subdivision or authority or body shall be taxable only in that State.
(
b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
(i)
is a national of that State; or
(ii)
did not become a resident of that State solely for the purpose of rendering the services.
2. The provisions of this Article shall not apply to any remuneration in respect of services rendered in connection with any trade or business carried on for purposes of profit.
Article 17
Income Not Expressly Mentioned
Items of income not expressly mentioned in the foregoing Articles of this Convention and arising in a Contracting State may be taxed in that State.
Article 18
Limitation Of Relief
1. Where this Convention provides (with or without other conditions) that income from sources in Norway shall be exempt from tax, or taxed at a reduced rate, in Norway and under the laws in force in Singapore the said income is subject to tax by reference to the amount thereof which is remitted to or received in Singapore and not by reference to the full amount thereof, then the exemption or reduction of tax to be allowed under this Convention in Norway shall apply only to so much of the income as is remitted to or received in Singapore.
2. However, this limitation does not apply to income derived by the Government of Singapore or any person approved by the competent authority of Singapore for the purpose of this paragraph. The term “the Government of Singapore” shall include its agencies and statutory bodies.
Article 19
Elimination Of Double Taxation
1. The laws of each Contracting State shall continue to govern the taxation of income arising in that State except where express provision to the contrary is made in this Convention. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article.
2. In Singapore double taxation shall be eliminated as follows:
Subject to the provisions of the laws of Singapore regarding the allowance as a credit against Singapore tax of tax payable in any country other than Singapore, Norwegian tax payable, whether directly or by deduction in respect of income from sources within Norway, shall be allowed as a credit against Singapore tax payable in respect of that income. Where such income is a dividend paid by a company which is a resident of Norway to a resident of Singapore the credit shall take into account (in addition to any Norwegian tax on dividends) the Norwegian corporation tax payable in respect of its profits by the company paying the dividends. If, however, Singapore imposes in accordance with the provisions of paragraph 4 of Article 10, a tax on dividends in addition to the tax chargeable in respect of the profits or income of a company such dividends the second sentence of this sub-paragraph shall apply only to dividends paid by a company which is a resident of Norway to a company which is a resident of Singapore and which owns directly or indirectly not less than 25 per cent of the share capital in the first-mentioned company.
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3. In Norway double taxation shall be eliminated as follows:
(a)
Where a resident of Norway derives income which, in accordance with the provisions of this Convention, may be taxed in Singapore, Norway shall, subject to the provisions of sub-paragraphs (b), (c) and (e), exempt such income from tax.
(b)
Where a resident of Norway derives items of income which, in accordance with the provisions of Articles 8, 11, 12 and 14 may be taxed in Singapore, Norway shall allow as a deduction from the tax on the income of that person an amount equal to the tax paid in Singapore. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such income derived from Singapore.
(c)
(i)
Where dividends are paid by a company which is a resident of Singapore to a company which is a resident of Norway, and which owns directly or indirectly not less than 25 per cent of the share capital of the first-mentioned company, then such dividends shall be exempt from tax in Norway.
(ii)
Where dividends are paid by a company which is a resident of Singapore to a person, other than a company, resident in Norway, who owns not less than 25 per cent of the share capital of the company paying the dividends, then such dividends shall be exempt from tax in Norway to the same extent as dividends paid by a company resident in Norway.
(iii)
Where dividends are paid by a company which is a resident of Singapore to a resident of Norway, other than a company referred to in sub-paragraph (i), then Norway shall allow as a deduction from the tax on the income of that Norwegian resident an amount equal to 15 per cent of the net amount of the dividends.
If, however, Singapore imposes in accordance with the provisions of paragraph 4 of Article 10, a tax on dividends in addition to the tax chargeable in respect of the profits or income of the company paying such dividends, the deductible amount shall equal 15 per cent of the gross amount of the dividends. Such deduction shall in no case, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to the dividends paid.
(d)
(i)
For the purposes of sub-paragraph (b) the deductible amount shall include any amount which would have been payable as Singapore tax for any year but for any reduction or exemption of Singapore tax on income arising in Singapore granted under the Economic Expansion Incentives (Relief From Income Tax) Act and the Income Tax Act.
(ii)
For the purposes of sub-paragraph (c) dividends which have been exempted from Singapore tax under the Economic Expansion Incentives (Relief From Income Tax) Act and the Income Tax Act shall be exempt from tax in Norway.
(iii)
The provisions of this sub-paragraph shall apply for the first five years for which this Convention is effective, but the competent authorities of the Contracting States may consult each other to determine whether this period shall be extended.
(e)
Where in accordance with any provisions of the Convention income derived by a resident of Norway is exempt from tax in Norway, Norway may nevertheless in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
(f)
The provisions of sub-paragraph (d)(i) and (ii) shall apply equally to any other provision or legislation which may subsequently be made or enacted granting a reduction or exemption which is agreed by the competent authorities to be of a substantially similar character.
4. Notwithstanding the provisions of this Convention, the income derived by the Government of Singapore Investment Corporation Pte. Ltd. from any source in Norway other than dividends and interest referred to in Articles 10 and 11 shall also be exempt from tax in Norway. However, such exemption shall in no case be given with respect to any investment held for other than public purposes and not if the holding constitutes a substantial participation.
Article 20
Non-discrimination
1. The nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.
2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.
3. Nothing in this Article shall be construed as obliging a Contracting State to grant to —
(a)
residents of the other Contracting State any personal allowances, reliefs and reductions for tax purposes which it grants to its own residents, or
(b)
nationals of the other Contracting State those personal allowances, reliefs and reductions for tax purposes which it grants to its own nationals who are not resident in that Contracting State or to such other persons as may be specified in the taxation laws of that Contracting State.
4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
5. Where a Contracting State grants tax incentives to its nationals designed to promote economic development in accordance with its national policy and criteria, it shall not be construed as discrimination under this Article.
6. The provisions of this Article shall not be construed as obliging a Contracting State to grant to nationals of the other Contracting State not being nationals of the first Contracting State any exceptional tax relief accorded to repatriating nationals of the first Contracting State.
7. In this Article, the term “taxation” means taxes which are the subject of this Convention.
Article 21
Mutual Agreement Procedure
1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic laws of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 20, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention.
3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.
4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.
Article 22
Exchange Of Information
1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes.
2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
(a)
to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
(b)
to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
(c)
to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
Article 23
Diplomatic Agents And Consular Officers
Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.
Article 24
Entry Into Force
1. This Convention shall be approved by Singapore and Norway in accordance with their respective legal procedures. The Governments of Singapore and Norway shall notify each other that these procedures have been complied with.
2. This Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provisions shall have effect:
(a)
in Singapore:
in respect of Singapore tax for the year of assessment beginning on or after 1st January in the second calendar year following the year in which the Convention enters into force and subsequent years of assessment;
(b)
in Norway:
in respect of income derived in the calendar year next following the year in which the later of the notifications referred to in paragraph 1 is given, and subsequent years.
3. The existing Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income of 9th September 1966 shall terminate upon the entry into force of this Convention. However, the provisions of the 1966 Agreement shall continue in effect until the provisions of this Convention become effective.
Article 25
Termination
This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination on or before the Thirtieth of June of any calendar year following after the period of five years from the year in which the Convention enters into force. In such event, the Convention shall cease to have effect:
(a)
in Singapore:
in respect of Singapore tax for the year of assessment beginning on or after 1st January in the second calendar year following the year in which the notice is given and subsequent years of assessment;
(b)
in Norway:
in respect of income derived in the calendar year next following the year in which the notice is given and subsequent years.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Convention.
DONE in duplicate at Singapore this 18th day of October 1984, in the English Language.
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For the Government of
the Republic of Singapore:
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For the Government of
the Kingdom of Norway:
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HSU TSE-KWANG
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FINN KOREN
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[G.N. No. S 336/85]
