September 6, 2002
A new Convention between Canada and Norway for the avoidance of double taxation and the prevention of fiscal evasion was signed July 12, 2002 in Ottawa.
The Convention limits the rate of withholding tax to 5 per cent for certain non-portfolio dividends,15 per cent for all other dividend payments, and 10 per cent for interest and royalties. An exemption for certain interest, copyright royalties and royalties in respect of computer software, patents and know-how is also provided.
Canada and Norway are to notify each other of the completion of the procedures required for bringing the Convention into force, and it will enter into force on the day the last notification is received. In the case of withholding tax, the convention will apply as of January 1 of the calendar year next following the year in which the Convention enters into force. In the case of other taxes, the Convention will apply as of January 1 of the calendar year next following the year in which the Convention enters into force.
Once in force, the new Convention will replace the existing convention, which was signed on November 23,1966.
The full text of the Convention is available on the Department of Finance Canada Web site.
For further information contact Parry Athenaios, Tax Legislation Division, (613) 992-5864.