Norway and Australia have a bilateral tax agreement which ensures that citizens and businesses from both nations are not subject to double taxation. The agreement, which was signed in 1980, covers income tax, fringe benefits tax, and capital gains tax. It also includes provisions for the exchange of information to prevent tax evasion and avoidance.
The primary purpose of the agreement is to promote trade and investment between the two nations. The tax agreement provides certainty for Australian and Norwegian investors, reducing the risk of double taxation and encouraging cross-border investment. The agreement also makes it easier for businesses to operate in both countries, by removing tax barriers and simplifying tax compliance.
Under the tax agreement, taxes on income and capital gains are generally paid in the country where the income or gain arises. However, if a person or business is tax resident in both countries, the agreement provides rules for determining which country has the primary taxing rights.
The tax agreement also includes provisions for the exchange of information between the tax authorities of both countries. This is an important tool in preventing tax evasion and avoidance, as it allows the authorities to share information on taxpayers and their assets.
Overall, the tax agreement between Norway and Australia provides a stable and predictable framework for taxpayers and businesses operating in both countries. It encourages cross-border investment and trade, while also ensuring that tax is paid where it is due. As such, it is an important part of the bilateral relationship between the two nations.